Confluent (NASDAQ:CFLT) Sets New 12-Month Low on Analyst Downgrade

Key Points

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Confluent, Inc. (NASDAQ:CFLT - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Thursday after Citigroup lowered their price target on the stock from $30.00 to $20.00. Citigroup currently has a neutral rating on the stock. Confluent traded as low as $17.51 and last traded at $17.92, with a volume of 16265787 shares changing hands. The stock had previously closed at $26.40.

Several other brokerages have also recently weighed in on CFLT. TD Securities dropped their price objective on Confluent from $34.00 to $32.00 and set a "buy" rating for the company in a report on Thursday, May 1st. Stephens began coverage on shares of Confluent in a report on Friday, July 18th. They issued an "overweight" rating and a $31.00 price objective on the stock. DA Davidson lowered their target price on shares of Confluent from $32.00 to $24.00 and set a "buy" rating for the company in a report on Thursday. Needham & Company LLC cut their price target on Confluent from $26.00 to $24.00 and set a "buy" rating on the stock in a research note on Thursday. Finally, Royal Bank Of Canada reduced their price target on Confluent from $28.00 to $25.00 and set an "outperform" rating on the stock in a research report on Thursday. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating, nineteen have issued a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $27.36.

Insider Activity at Confluent

In other Confluent news, CEO Edward Jay Kreps sold 232,500 shares of the business's stock in a transaction dated Thursday, June 5th. The shares were sold at an average price of $24.50, for a total transaction of $5,696,250.00. Following the sale, the chief executive officer directly owned 452,488 shares of the company's stock, valued at $11,085,956. The trade was a 33.94% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Michelangelo Volpi sold 25,000 shares of the firm's stock in a transaction dated Thursday, June 5th. The shares were sold at an average price of $25.00, for a total value of $625,000.00. Following the completion of the transaction, the director owned 267,079 shares of the company's stock, valued at $6,676,975. The trade was a 8.56% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 486,669 shares of company stock worth $11,439,593. 13.82% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Cloud Capital Management LLC bought a new position in shares of Confluent in the first quarter valued at $26,000. Credit Industriel ET Commercial acquired a new stake in Confluent in the fourth quarter valued at $28,000. Farther Finance Advisors LLC grew its position in shares of Confluent by 252.3% in the 2nd quarter. Farther Finance Advisors LLC now owns 1,448 shares of the company's stock valued at $36,000 after acquiring an additional 1,037 shares during the period. Versant Capital Management Inc raised its holdings in shares of Confluent by 2,458.2% in the 1st quarter. Versant Capital Management Inc now owns 1,714 shares of the company's stock valued at $40,000 after purchasing an additional 1,647 shares during the period. Finally, Banque Transatlantique SA acquired a new stake in Confluent in the 1st quarter valued at about $43,000. 78.09% of the stock is currently owned by institutional investors.

Confluent Price Performance

The business has a fifty day moving average of $24.34 and a 200 day moving average of $25.35. The firm has a market cap of $5.83 billion, a P/E ratio of -18.21 and a beta of 0.96. The company has a quick ratio of 3.98, a current ratio of 3.98 and a debt-to-equity ratio of 1.03.

Confluent (NASDAQ:CFLT - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $0.09 earnings per share for the quarter, beating analysts' consensus estimates of $0.08 by $0.01. Confluent had a negative return on equity of 27.34% and a negative net margin of 29.27%. The business had revenue of $282.29 million for the quarter, compared to analysts' expectations of $278.32 million. During the same quarter in the prior year, the business earned $0.06 EPS. The firm's revenue for the quarter was up 20.1% on a year-over-year basis. On average, sell-side analysts anticipate that Confluent, Inc. will post -0.83 earnings per share for the current year.

About Confluent

Confluent, Inc operates a data streaming platform in the United States and internationally. The company provides platforms that allow customers to connect their applications, systems, and data layers, such as Confluent Cloud, a managed cloud-native software-as-a-service; and Confluent Platform, an enterprise-grade self-managed software.