Investors Purchase Large Volume of Call Options on Confluent (NASDAQ:CFLT)

Key Points

• Investors bought **16,674 call options** for Confluent, representing a **53% increase** over the average daily volume, indicating heightened interest in the stock.
• Wall Street analysts hold a generally positive outlook on Confluent, with a consensus rating of **"Moderate Buy"** and a price target of **$27.25**.
• CFO Rohan Sivaram recently sold **5,000 shares** of Confluent stock for **$100,000**, amid a trend of insiders selling a total of **741,584 shares** over the last three months.

Confluent, Inc. (NASDAQ:CFLT - Get Free Report) was the target of some unusual options trading on Wednesday. Stock traders bought 16,674 call options on the company. This is an increase of 53% compared to the average daily volume of 10,898 call options.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Stephens started coverage on Confluent in a report on Friday, July 18th. They set an "overweight" rating and a $31.00 price objective for the company. Raymond James Financial decreased their price objective on Confluent from $30.00 to $25.00 and set an "outperform" rating on the stock in a report on Thursday, July 31st. Royal Bank Of Canada decreased their price objective on Confluent from $28.00 to $25.00 and set an "outperform" rating on the stock in a report on Thursday, July 31st. Zacks Research raised Confluent from a "strong sell" rating to a "hold" rating in a report on Monday, September 1st. Finally, Citigroup decreased their price objective on Confluent from $30.00 to $20.00 and set a "neutral" rating on the stock in a report on Monday, August 4th. One research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Confluent has a consensus rating of "Moderate Buy" and a consensus price target of $27.25.

Insiders Place Their Bets

In other Confluent news, CFO Rohan Sivaram sold 5,000 shares of the firm's stock in a transaction dated Monday, September 8th. The stock was sold at an average price of $20.00, for a total value of $100,000.00. Following the completion of the transaction, the chief financial officer owned 631,596 shares in the company, valued at $12,631,920. This trade represents a 0.79% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Eric Vishria sold 30,953 shares of the firm's stock in a transaction dated Thursday, August 28th. The stock was sold at an average price of $20.00, for a total value of $619,060.00. Following the completion of the transaction, the director owned 1,123,447 shares of the company's stock, valued at approximately $22,468,940. This represents a 2.68% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 741,584 shares of company stock worth $13,597,695 in the last three months. 13.82% of the stock is owned by corporate insiders.

Institutional Trading of Confluent

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Cloud Capital Management LLC purchased a new stake in shares of Confluent during the first quarter worth about $26,000. Farther Finance Advisors LLC lifted its stake in shares of Confluent by 252.3% during the 2nd quarter. Farther Finance Advisors LLC now owns 1,448 shares of the company's stock worth $36,000 after acquiring an additional 1,037 shares during the last quarter. Banque Transatlantique SA bought a new stake in shares of Confluent during the 1st quarter worth approximately $43,000. Elevation Point Wealth Partners LLC purchased a new position in shares of Confluent during the second quarter valued at $49,000. Finally, SVB Wealth LLC purchased a new position in shares of Confluent in the 1st quarter valued at $54,000. Hedge funds and other institutional investors own 78.09% of the company's stock.

Confluent Trading Up 8.9%

Shares of CFLT traded up $1.85 during mid-day trading on Wednesday, hitting $22.58. 22,594,736 shares of the company's stock traded hands, compared to its average volume of 6,733,559. 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 has a 1 year low of $15.64 and a 1 year high of $37.90. The firm has a market capitalization of $7.79 billion, a P/E ratio of -24.00 and a beta of 0.96. The business's 50-day moving average price is $18.97 and its 200-day moving average price is $21.86.

Confluent (NASDAQ:CFLT - Get Free Report) last released its earnings results on Wednesday, July 30th. The company reported $0.09 EPS for the quarter, topping the consensus estimate of $0.08 by $0.01. The business had revenue of $282.29 million for the quarter, compared to the consensus estimate of $278.32 million. Confluent had a negative return on equity of 27.34% and a negative net margin of 29.27%.The company's revenue for the quarter was up 20.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.06 earnings per share. Confluent has set its Q3 2025 guidance at 0.090-0.100 EPS. FY 2025 guidance at 0.360-0.360 EPS. As a group, sell-side analysts forecast that Confluent will post -0.83 EPS for the current fiscal year.

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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