Tremblant Capital Group Lowers Stock Holdings in Confluent, Inc. $CFLT

Key Points

• Tremblant Capital Group cut its stake in Confluent by 44.6% in Q3, selling 252,049 shares and ending the quarter with 312,702 shares worth about $6.19M.
• Company insiders have sold heavily recently — CEO Edward Jay Kreps sold 270,207 shares (a 47.25% reduction) and insiders disposed of 767,245 shares totaling about $23.39M in the last 90 days, while insiders still own 9.20% of the stock.
• Analysts have a consensus "Hold" rating with a target of $28.71 (below the current ~ $30.67 price); Confluent beat EPS and grew revenue 20.5% but remains unprofitable (net margin -25.31%, negative ROE).

Tremblant Capital Group reduced its stake in Confluent, Inc. (NASDAQ:CFLT - Free Report) by 44.6% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 312,702 shares of the company's stock after selling 252,049 shares during the quarter. Tremblant Capital Group owned about 0.09% of Confluent worth $6,192,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors also recently made changes to their positions in the stock. Melqart Asset Management UK Ltd bought a new position in shares of Confluent in the third quarter worth approximately $4,919,000. Optimus Prime Fund Management Co. Ltd. increased its position in shares of Confluent by 16.8% during the third quarter. Optimus Prime Fund Management Co. Ltd. now owns 5,920,000 shares of the company's stock valued at $117,216,000 after acquiring an additional 850,000 shares in the last quarter. FORA Capital LLC bought a new stake in shares of Confluent during the third quarter valued at approximately $209,000. Marshall Wace LLP purchased a new position in Confluent in the 3rd quarter worth approximately $14,492,000. Finally, Entropy Technologies LP purchased a new position in Confluent in the 3rd quarter worth approximately $1,838,000. Hedge funds and other institutional investors own 78.09% of the company's stock.

Confluent Trading Down 0.1%

Shares of CFLT stock opened at $30.67 on Friday. The company has a current ratio of 3.83, a quick ratio of 3.83 and a debt-to-equity ratio of 0.94. Confluent, Inc. has a 12-month low of $15.64 and a 12-month high of $30.81. The stock has a market capitalization of $10.97 billion, a P/E ratio of -35.66 and a beta of 0.95. The firm's 50 day moving average is $30.56 and its 200 day moving average is $25.84.

Confluent (NASDAQ:CFLT - Get Free Report) last announced its earnings results on Wednesday, February 11th. The company reported $0.12 earnings per share for the quarter, beating analysts' consensus estimates of $0.10 by $0.02. The business had revenue of $314.82 million during 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%. The company's quarterly revenue was up 20.5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.09 EPS. Research analysts expect that Confluent, Inc. will post -0.83 earnings per share for the current year.

Analysts Set New Price Targets

Several research firms recently issued reports on CFLT. William Blair cut Confluent from an "outperform" rating to a "market perform" rating in a research report on Monday, December 8th. UBS Group cut Confluent from a "buy" rating to a "neutral" rating and boosted their price target for the stock from $29.00 to $31.00 in a research note on Tuesday, December 9th. Piper Sandler downgraded Confluent from an "overweight" rating to a "hold" rating and set a $31.00 price target on the stock. in a report on Monday, December 8th. Needham & Company LLC cut Confluent from a "buy" rating to a "hold" rating in a research report on Monday, December 8th. Finally, Royal Bank Of Canada downgraded Confluent from an "outperform" rating to a "sector perform" rating and lifted their price objective for the stock from $30.00 to $31.00 in a report on Tuesday, December 9th. One investment 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 given a Sell rating to the company's stock. According to MarketBeat.com, Confluent presently has a consensus rating of "Hold" and a consensus target price of $28.71.

Insider Activity at Confluent

In other Confluent news, CEO Edward Jay Kreps sold 270,207 shares of the business's stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $30.70, for a total transaction of $8,295,354.90. Following the completion of the sale, the chief executive officer directly owned 301,660 shares in the company, valued at $9,260,962. The trade was a 47.25% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Eric Vishria sold 61,905 shares of the company's stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $30.57, for a total transaction of $1,892,435.85. Following the sale, the director directly owned 663,637 shares of the company's stock, valued at $20,287,383.09. The trade was a 8.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 767,245 shares of company stock valued at $23,386,655 in the last 90 days. 9.20% of the stock is owned by company insiders.

Confluent 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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