Traders Buy High Volume of Call Options on Confluent (NASDAQ:CFLT)

Confluent, Inc. (NASDAQ:CFLT) was the target of unusually large options trading on Tuesday. Stock traders acquired 32,513 call options on the stock. This represents an increase of 156% compared to the average daily volume of 12,688 call options.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the stock. Robert W. Baird lifted their price objective on shares of Confluent from $20.00 to $26.00 and gave the company a “neutral” rating in a report on Tuesday. UBS Group set a $28.00 target price on Confluent in a research note on Tuesday. TD Cowen restated a “hold” rating and issued a $24.00 price target on shares of Confluent in a report on Thursday, July 31st. Raymond James Financial reissued an “outperform” rating and set a $30.00 target price (up previously from $25.00) on shares of Confluent in a research report on Tuesday. Finally, Morgan Stanley increased their price objective on Confluent from $25.00 to $27.00 and gave the company an “equal weight” rating in a report on Tuesday. Twenty-two equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $27.93.

Insider Buying and Selling at Confluent

In other news, CEO Edward Jay Kreps sold 232,500 shares of the firm’s stock in a transaction that occurred on Thursday, September 4th. The shares were sold at an average price of $18.66, for a total transaction of $4,338,450.00. Following the transaction, the chief executive officer directly owned 377,074 shares of the company’s stock, valued at approximately $7,036,200.84. This trade represents a 38.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Eric Vishria sold 30,953 shares of the company’s stock in a transaction on 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 sale, the director owned 1,123,447 shares of the company’s stock, valued at $22,468,940. This represents a 2.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 741,584 shares of company stock valued at $13,597,695. 9.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in CFLT. Cloud Capital Management LLC purchased a new position in shares of Confluent during the 1st quarter valued at about $26,000. Farther Finance Advisors LLC raised 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 valued at $36,000 after buying an additional 1,037 shares during the last quarter. True Wealth Design LLC acquired a new position in Confluent in the third quarter valued at approximately $36,000. Banque Transatlantique SA acquired a new position in Confluent in the first quarter valued at approximately $43,000. Finally, Elevation Point Wealth Partners LLC acquired a new position in Confluent in the second quarter valued at approximately $49,000. Hedge funds and other institutional investors own 78.09% of the company’s stock.

Confluent Price Performance

Shares of NASDAQ CFLT opened at $23.65 on Thursday. The business’s 50 day moving average price is $20.61 and its 200 day moving average price is $21.84. The firm has a market cap of $8.15 billion, a P/E ratio of -26.28 and a beta of 0.96. Confluent has a 52 week low of $15.64 and a 52 week high of $37.90. The company has a quick ratio of 3.98, a current ratio of 4.01 and a debt-to-equity ratio of 0.98.

Confluent (NASDAQ:CFLT) last issued its earnings results on Monday, October 27th. The company reported $0.13 EPS for the quarter, beating analysts’ consensus estimates of $0.10 by $0.03. The firm had revenue of $298.52 million for the quarter, compared to analyst estimates of $292.69 million. Confluent had a negative return on equity of 25.40% and a negative net margin of 27.32%.Confluent’s revenue for the quarter was up 19.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.10 earnings per share. Confluent has set its Q4 2025 guidance at 0.090-0.100 EPS. FY 2025 guidance at 0.390-0.400 EPS. On average, sell-side analysts expect that Confluent will post -0.83 earnings per share for the current 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.