Confluent Inc. (CFLT) Performance and Fundamentals Dashboard tells a completely different story

Confluent Inc. (NASDAQ: CFLT) stock jumped 9.00% on Monday to $23.38 against a previous-day closing price of $21.45. With 4.35 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.85 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $23.50 whereas the lowest price it dropped to was $21.62. The 52-week range on CFLT shows that it touched its highest point at $81.11 and its lowest point at $16.48 during that stretch. It currently has a 1-year price target of $32.56.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CFLT was up-trending over the past week, with a rise of 14.55%, but this was up by 3.18% over a month. Three-month performance dropped to -3.75% while six-month performance fell -8.67%. The stock lost -62.29% in the past year, while it has gained 5.13% so far this year. A look at the trailing 12-month EPS for CFLT yields -1.67 with Next year EPS estimates of -0.51. For the next quarter, that number is -0.16. This implies an EPS growth rate of -38.60% for this year and 20.30% for next year.

Float and Shares Shorts:

At present, 282.27 million CFLT shares are outstanding with a float of 151.39 million shares on hand for trading. On Oct 13, 2022, short shares totaled 13.5 million, which was 4.79% higher than short shares on Sep 14, 2022. In addition to Mr. Edward Kreps as the firm’s Co-Founder, Chairman & CEO, Ms. Neha Narkhede serves as its Co-Founder & Director.

Institutional Ownership:

Through their ownership of 83.31% of CFLT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 40.54% of CFLT, in contrast to 35.50% held by mutual funds. Shares owned by individuals account for 15.62%. As the largest shareholder in CFLT with 8.92% of the stake, Altimeter Capital Management LP holds 13,716,310 shares worth 13,716,310. A second-largest stockholder of CFLT, The Vanguard Group, Inc., holds 10,773,766 shares, controlling over 7.01% of the firm’s shares. JPMorgan Investment Management, I is the third largest shareholder in CFLT, holding 10,574,867 shares or 6.88% stake. With a 3.71% stake in CFLT, the American Funds Small Cap World Fu is the largest stakeholder. A total of 5,710,121 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.46% of CFLT stock, is the second-largest Mutual Fund holder. It holds 3,787,774 shares valued at 84.24 million. Vanguard Small Cap Index Fund holds 2.06% of the stake in CFLT, owning 3,169,066 shares worth 70.48 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CFLT since 19 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CFLT analysts setting a high price target of $55.00 and a low target of $19.00, the average target price over the next 12 months is $31.53. Based on these targets, CFLT could surge 135.24% to reach the target high and fall by -18.73% to reach the target low. Reaching the average price target will result in a growth of 34.86% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CFLT will report FY 2022 earnings on 02/08/2024. Analysts have provided yearly estimates in a range of -$0.63 being high and -$0.67 being low. For CFLT, this leads to a yearly average estimate of -$0.64. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Confluent Inc. surprised analysts by $0.04 when it reported -$0.13 EPS against a consensus estimate of -$0.17. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is -$0.14 and the low estimate is -$0.18. The average estimate for the next quarter is thus -$0.16.

Summary of Insider Activity:

Insiders traded CFLT stock several times over the past three months with 32 Buys and 40 Sells. In these transactions, 14,973,047 shares were bought while 15,929,851 shares were sold. The number of buy transactions has increased to 94 while that of sell transactions has risen to 123 over the past year. The total number of shares bought during that period was 49,412,617 while 40,929,104 shares were sold.

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