Confluent (NASDAQ:CFLT) Hits New 12-Month Low - What's Next?

Key Points

• Confluent, Inc. shares reached a new 52-week low of $16.53, with an average trading volume of 3,114,578 shares.
• Analysts have a "Moderate Buy" average rating for Confluent, with a price target of $27.36, despite recent price reductions by multiple brokerage firms.
• The company reported a revenue of $282.29 million in its latest quarterly earnings, showing a 20.1% year-over-year increase, despite a negative net margin of 29.27%.

Confluent, Inc. (NASDAQ:CFLT - Get Free Report) shares hit a new 52-week low during trading on Thursday . The stock traded as low as $16.53 and last traded at $16.74, with a volume of 3114578 shares changing hands. The stock had previously closed at $17.24.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on CFLT. Stifel Nicolaus reiterated a "hold" rating and set a $21.00 target price (down previously from $30.00) on shares of Confluent in a research report on Thursday, July 31st. JMP Securities decreased their price objective on shares of Confluent from $40.00 to $36.00 and set a "market outperform" rating on the stock in a report on Thursday, May 1st. Truist Financial cut their target price on shares of Confluent from $35.00 to $30.00 and set a "buy" rating for the company in a research note on Thursday, May 1st. Canaccord Genuity Group reduced their price target on shares of Confluent from $38.00 to $32.00 and set a "buy" rating for the company in a research report on Thursday, May 1st. Finally, Capital One Financial set a $21.00 price objective on Confluent in a research note on Thursday, July 31st. One investment analyst has rated the stock with a sell rating, ten have given a hold rating, nineteen have given a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $27.36.

Confluent Trading Down 1.8%

The company has a market cap of $5.76 billion, a price-to-earnings ratio of -18.01 and a beta of 0.96. The business has a fifty day simple moving average of $24.02 and a 200 day simple moving average of $25.17. 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 released its quarterly earnings data on Wednesday, July 30th. The company reported $0.09 EPS for the quarter, topping analysts' consensus estimates of $0.08 by $0.01. Confluent had a negative net margin of 29.27% and a negative return on equity of 27.34%. The firm had revenue of $282.29 million for the quarter, compared to the consensus estimate of $278.32 million. During the same quarter in the previous year, the firm earned $0.06 earnings per share. The firm's revenue was up 20.1% on a year-over-year basis. On average, equities analysts anticipate that Confluent, Inc. will post -0.83 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CRO Ban Ryan Norris Mac sold 1,225 shares of the business's stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $23.49, for a total value of $28,775.25. Following the sale, the executive directly owned 411,830 shares in the company, valued at $9,673,886.70. The trade was a 0.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Kong Phan sold 3,575 shares of Confluent stock in a transaction dated Friday, June 20th. The stock was sold at an average price of $23.49, for a total transaction of $83,976.75. Following the transaction, the chief accounting officer owned 239,742 shares of the company's stock, valued at approximately $5,631,539.58. The trade was a 1.47% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 486,669 shares of company stock valued at $11,439,593 in the last three months. 9.20% of the stock is owned by insiders.

Institutional Trading of Confluent

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. raised its stake in Confluent by 7.2% in the 1st quarter. Vanguard Group Inc. now owns 26,620,150 shares of the company's stock valued at $623,976,000 after purchasing an additional 1,791,588 shares during the last quarter. Altimeter Capital Management LP boosted its position in Confluent by 11.0% during the first quarter. Altimeter Capital Management LP now owns 13,042,080 shares of the company's stock worth $305,706,000 after acquiring an additional 1,295,710 shares during the last quarter. Champlain Investment Partners LLC grew its stake in Confluent by 0.3% in the 1st quarter. Champlain Investment Partners LLC now owns 10,862,083 shares of the company's stock worth $254,607,000 after acquiring an additional 27,329 shares during the period. William Blair Investment Management LLC raised its holdings in Confluent by 3.8% in the 2nd quarter. William Blair Investment Management LLC now owns 9,639,102 shares of the company's stock valued at $240,303,000 after acquiring an additional 356,277 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its stake in shares of Confluent by 13.5% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 5,510,743 shares of the company's stock worth $129,173,000 after purchasing an additional 654,827 shares during the period. 78.09% of the stock is currently owned by hedge funds and other institutional investors.

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.

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