ThornTree Capital Partners LP Takes Position in Confluent, Inc. $CFLT

Key Points

• ThornTree Capital Partners LP recently acquired a stake in Confluent, Inc., investing approximately $24.83 million for 1,059,340 shares, making it the fund's 11th largest position.
• Confluent's latest quarterly earnings beat analysts' expectations, reporting $0.09 earnings per share and revenues of $282.29 million, a 20.1% increase year-over-year.
• Institutional investors hold 78.09% of Confluent's stock, indicating strong confidence in the company from major financial players.

ThornTree Capital Partners LP acquired a new stake in Confluent, Inc. (NASDAQ:CFLT - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 1,059,340 shares of the company's stock, valued at approximately $24,831,000. Confluent comprises approximately 5.5% of ThornTree Capital Partners LP's investment portfolio, making the stock its 11th biggest holding. ThornTree Capital Partners LP owned about 0.31% of Confluent at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in CFLT. 1832 Asset Management L.P. acquired a new stake in shares of Confluent in the 1st quarter worth $48,547,000. Vanguard Group Inc. increased its stake in shares of Confluent by 7.2% in the 1st quarter. Vanguard Group Inc. now owns 26,620,150 shares of the company's stock worth $623,976,000 after acquiring an additional 1,791,588 shares during the last quarter. Alyeska Investment Group L.P. increased its stake in shares of Confluent by 220.2% in the 1st quarter. Alyeska Investment Group L.P. now owns 2,597,346 shares of the company's stock worth $60,882,000 after acquiring an additional 1,786,116 shares during the last quarter. Driehaus Capital Management LLC acquired a new stake in shares of Confluent in the 1st quarter worth $39,944,000. Finally, Phoenix Financial Ltd. increased its stake in shares of Confluent by 901.4% in the 1st quarter. Phoenix Financial Ltd. now owns 1,547,112 shares of the company's stock worth $36,269,000 after acquiring an additional 1,392,615 shares during the last quarter. 78.09% of the stock is owned by institutional investors and hedge funds.

Confluent Trading Down 2.8%

Confluent stock traded down $0.56 during midday trading on Thursday, reaching $19.45. 7,033,684 shares of the stock traded hands, compared to its average volume of 6,697,879. The company has a 50-day simple moving average of $21.15 and a two-hundred day simple moving average of $22.99. Confluent, Inc. has a 12-month low of $15.64 and a 12-month high of $37.90. The firm has a market cap of $6.71 billion, a PE ratio of -20.69 and a beta of 0.97. The company has a current ratio of 3.98, a quick ratio of 3.98 and a debt-to-equity ratio of 1.03.

Confluent (NASDAQ:CFLT - Get Free Report) last announced its earnings results on Wednesday, July 30th. The company reported $0.09 EPS 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 company had revenue of $282.29 million during the quarter, compared to analysts' expectations of $278.32 million. During the same period last year, the business posted $0.06 EPS. Confluent's revenue for the quarter was up 20.1% on a year-over-year basis. Confluent has set its Q3 2025 guidance at 0.090-0.100 EPS. FY 2025 guidance at 0.360-0.360 EPS. Research analysts expect that Confluent, Inc. will post -0.83 earnings per share for the current fiscal year.

Analyst Ratings Changes

CFLT has been the subject of a number of recent research reports. Oppenheimer cut their target price on Confluent from $32.00 to $26.00 and set an "outperform" rating for the company in a research note on Thursday, July 31st. Zacks Research raised Confluent from a "strong sell" rating to a "hold" rating in a research note on Monday, September 1st. Cowen downgraded Confluent from a "buy" rating to a "hold" rating in a research note on Thursday, July 31st. Citigroup cut their price objective on Confluent from $30.00 to $20.00 and set a "neutral" rating for the company in a research report on Monday, August 4th. Finally, Royal Bank Of Canada cut their price objective on Confluent from $28.00 to $25.00 and set an "outperform" rating for the company in a research report on Thursday, July 31st. Two research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Confluent currently has a consensus rating of "Moderate Buy" and a consensus target price of $27.36.

Insider Activity at Confluent

In related news, CAO Kong Phan sold 3,575 shares of the firm's 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 completion of the transaction, the chief accounting officer directly owned 239,742 shares in the company, valued at $5,631,539.58. This trade represents a 1.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Rohan Sivaram sold 26,097 shares of the firm's stock in a transaction dated Wednesday, August 20th. The shares were sold at an average price of $17.01, for a total value of $443,909.97. Following the transaction, the chief financial officer owned 636,596 shares of the company's stock, valued at $10,828,497.96. This trade represents a 3.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 587,421 shares of company stock worth $10,554,916 over the last ninety days. Company insiders own 9.20% of the company's stock.

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.