Quantbot Technologies LP Buys New Shares in Confluent, Inc. $CFLT

Key Points

• Quantbot Technologies LP bought a new position in Confluent (NASDAQ:CFLT), acquiring 56,683 shares in Q3 worth about $1.12 million, as institutional ownership sits around 78.09% with several other funds also increasing stakes.
• Confluent beat the quarter—EPS $0.12 vs $0.10 and revenue $314.8M vs $308M (revenue +20.5% YoY)—but remains unprofitable (negative net margin ~25.3% and negative ROE) and analysts forecast a full-year EPS of about -0.83, producing a consensus Hold rating and $28.71 price target.
• Insider selling has been significant: CEO Edward Jay Kreps sold 506,000 shares (~$15.2M) and insiders sold roughly 1.5M shares (~$45.4M) over the past three months, leaving insiders with about 9.2% ownership.

Quantbot Technologies LP purchased a new position in Confluent, Inc. (NASDAQ:CFLT - Free Report) in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 56,683 shares of the company's stock, valued at approximately $1,122,000.

Several other large investors have also made changes to their positions in CFLT. Andra AP fonden grew its position in shares of Confluent by 55.2% during the third quarter. Andra AP fonden now owns 290,917 shares of the company's stock worth $5,760,000 after purchasing an additional 103,529 shares in the last quarter. Xponance Inc. boosted its stake in Confluent by 1.8% in the 3rd quarter. Xponance Inc. now owns 40,399 shares of the company's stock worth $800,000 after purchasing an additional 723 shares during the period. TD Asset Management Inc purchased a new stake in Confluent during the 3rd quarter valued at approximately $1,164,000. Krane Funds Advisors LLC grew its holdings in Confluent by 301.7% during the 3rd quarter. Krane Funds Advisors LLC now owns 52,070 shares of the company's stock valued at $1,031,000 after buying an additional 39,109 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its position in shares of Confluent by 767.8% during the third quarter. EverSource Wealth Advisors LLC now owns 6,673 shares of the company's stock valued at $132,000 after buying an additional 5,904 shares during the last quarter. 78.09% of the stock is currently owned by hedge funds and other institutional investors.

Confluent Price Performance

NASDAQ:CFLT opened at $30.77 on Friday. The firm has a market capitalization of $11.00 billion, a price-to-earnings ratio of -35.78 and a beta of 0.95. The company has a debt-to-equity ratio of 0.94, a current ratio of 3.83 and a quick ratio of 3.83. The business has a 50 day simple moving average of $30.50 and a 200-day simple moving average of $25.38. Confluent, Inc. has a 1 year low of $15.64 and a 1 year high of $30.81.

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

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the stock. Piper Sandler downgraded shares of Confluent from an "overweight" rating to a "hold" rating and set a $31.00 target price on the stock. in a report on Monday, December 8th. Mizuho downgraded shares of Confluent from a "strong-buy" rating to a "hold" rating in a report on Monday, December 8th. Oppenheimer cut shares of Confluent from an "outperform" rating to a "market perform" rating in a research note on Tuesday, December 9th. DA Davidson reissued a "neutral" rating and set a $31.00 price objective (up from $29.00) on shares of Confluent in a report on Monday, December 8th. Finally, UBS Group lowered Confluent from a "buy" rating to a "neutral" rating and raised their price objective for the company from $29.00 to $31.00 in a research report on Tuesday, December 9th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, twenty-eight have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $28.71.

Insider Buying and Selling at Confluent

In related news, CEO Edward Jay Kreps sold 506,000 shares of Confluent stock in a transaction dated Friday, December 12th. The shares were sold at an average price of $30.04, for a total transaction of $15,200,240.00. Following the completion of the transaction, the chief executive officer directly owned 339,367 shares of the company's stock, valued at approximately $10,194,584.68. The trade was a 59.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Neha Narkhede sold 80,000 shares of the company's stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $30.59, for a total transaction of $2,447,200.00. Following the transaction, the director owned 28,549 shares in the company, valued at $873,313.91. The trade was a 73.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 1,501,830 shares of company stock valued at $45,389,931. Insiders own 9.20% of the company's stock.

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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