Capital Research Global Investors Cuts Position in Confluent, Inc. $CFLT

Key Points

• Capital Research Global Investors cut its stake in Confluent by 24.1% in Q3, selling 469,005 shares and retaining 1,475,965 shares worth about $29.22 million (≈0.42% of the company).
• Insiders sold heavily this quarter — directors Eric Vishria and Michelangelo Volpi sold 61,905 and 25,000 shares on Feb. 13 — and insiders disposed of 737,249 shares (≈$22.47M) overall, leaving insiders with roughly 9.20% ownership.
• Confluent beat the quarter (EPS $0.12 vs. $0.10 est., revenue $314.8M vs. $308.0M; revenue +20.5% YoY) but remains unprofitable with a -25.31% net margin, and analysts carry a consensus Hold rating with a $28.71 target.

Capital Research Global Investors decreased its holdings in Confluent, Inc. (NASDAQ:CFLT - Free Report) by 24.1% in the third quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 1,475,965 shares of the company's stock after selling 469,005 shares during the quarter. Capital Research Global Investors owned 0.42% of Confluent worth $29,224,000 at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. Xponance Inc. increased its position in shares of Confluent by 1.8% in the third quarter. Xponance Inc. now owns 40,399 shares of the company's stock valued at $800,000 after buying an additional 723 shares in the last quarter. Perigon Wealth Management LLC lifted its position in shares of Confluent by 8.7% during the 3rd quarter. Perigon Wealth Management LLC now owns 10,775 shares of the company's stock valued at $213,000 after buying an additional 866 shares in the last quarter. J.W. Cole Advisors Inc. grew its stake in Confluent by 7.7% in the 2nd quarter. J.W. Cole Advisors Inc. now owns 13,880 shares of the company's stock valued at $346,000 after acquiring an additional 993 shares during the period. Rafferty Asset Management LLC grew its stake in Confluent by 13.7% in the 2nd quarter. Rafferty Asset Management LLC now owns 11,831 shares of the company's stock valued at $295,000 after acquiring an additional 1,421 shares during the period. Finally, The Manufacturers Life Insurance Company increased its holdings in Confluent by 1.1% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 137,177 shares of the company's stock worth $3,420,000 after acquiring an additional 1,526 shares in the last quarter. Hedge funds and other institutional investors own 78.09% of the company's stock.

Insider Buying and Selling at Confluent

In related news, Director Eric Vishria sold 61,905 shares of Confluent stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $30.57, for a total transaction of $1,892,435.85. Following the transaction, the director owned 663,637 shares in the company, valued at approximately $20,287,383.09. This trade represents a 8.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Michelangelo Volpi sold 25,000 shares of the business's stock in a transaction on Friday, February 13th. The stock was sold at an average price of $30.59, for a total value of $764,750.00. Following the transaction, the director directly owned 155,512 shares in the company, valued at $4,757,112.08. This trade represents a 13.85% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 737,249 shares of company stock worth $22,466,678. 9.20% of the stock is owned by company insiders.

Confluent Price Performance

Shares of NASDAQ CFLT opened at $30.69 on Friday. The firm has a 50-day simple moving average of $30.55 and a 200-day simple moving average of $25.75. The company has a quick ratio of 3.83, a current ratio of 3.83 and a debt-to-equity ratio of 0.94. The stock has a market capitalization of $10.98 billion, a price-to-earnings ratio of -35.69 and a beta of 0.95. Confluent, Inc. has a 52 week low of $15.64 and a 52 week high of $30.81.

Confluent (NASDAQ:CFLT - Get Free Report) last posted its quarterly earnings results on Wednesday, February 11th. The company reported $0.12 earnings per share for the quarter, topping analysts' consensus estimates of $0.10 by $0.02. The firm had revenue of $314.82 million for the quarter, compared to analyst estimates of $308.03 million. Confluent had a negative net margin of 25.31% and a negative return on equity of 22.66%. Confluent's quarterly revenue was up 20.5% on a year-over-year basis. During the same period in the previous year, the business posted $0.09 earnings per share. On average, equities analysts predict that Confluent, Inc. will post -0.83 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

CFLT has been the subject of a number of research analyst reports. Deutsche Bank Aktiengesellschaft set a $31.00 price objective on shares of Confluent and gave the stock a "hold" rating in a research report on Monday, December 8th. Evercore set a $31.00 target price on shares of Confluent in a research note on Monday, December 8th. DA Davidson restated a "neutral" rating and set a $31.00 price target (up from $29.00) on shares of Confluent in a research report on Monday, December 8th. William Blair lowered shares of Confluent from an "outperform" rating to a "market perform" rating in a research note on Monday, December 8th. Finally, UBS Group cut Confluent from a "buy" rating to a "neutral" rating and lifted their price objective for the stock from $29.00 to $31.00 in a report on Tuesday, December 9th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, twenty-eight have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Confluent has a consensus rating of "Hold" and a consensus target price of $28.71.

Confluent Company Profile

Confluent, Inc NASDAQ: CFLT is a leading provider of an event streaming platform built on Apache Kafka. The company's flagship offerings include Confluent Platform—a self-managed software solution—and Confluent Cloud, a fully managed service designed to simplify real-time data processing across hybrid and multi-cloud environments. These products enable enterprises to collect, process and distribute high volumes of data in real time, supporting use cases such as fraud detection, supply chain optimization and personalized customer experiences.

Founded in 2014 by Apache Kafka co-creators Jay Kreps, Neha Narkhede and Jun Rao, Confluent has driven the commercialization of Kafka technologies and extended the platform with tools for data integration, stream processing and enterprise-grade security.

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