The stock price of Confluent Inc (NASDAQ: CFLT) has surged by 3.03 when compared to previous closing price of 26.70, but the company has seen a 2.08% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2025-01-18 that Confluent is a terrific “growth at a reasonable price” software stock that has only seen its share price rise ~20% over the past year, despite strong growth. Confluent, founded by creators of open-source Apache Kafka, offers a data streaming platform crucial for real-time applications, benefiting from substantial secular tailwinds. Confluent’s horizontal software platform serves diverse industries, boasting blue-chip clients like JPMorgan Chase, Netflix, and Walmart, with an estimated $60 billion TAM.
Is It Worth Investing in Confluent Inc (NASDAQ: CFLT) Right Now?
CFLT has 36-month beta value of 0.90. Analysts have mixed views on the stock, with 18 analysts rating it as a “buy,” 7 as “overweight,” 9 as “hold,” and 0 as “sell.”
The public float for CFLT is 247.28M, and currently, short sellers hold a 4.79% ratio of that float. The average trading volume of CFLT on January 22, 2025 was 3.89M shares.
CFLT’s Market Performance
CFLT’s stock has seen a 2.08% increase for the week, with a -12.22% drop in the past month and a 23.25% gain in the past quarter. The volatility ratio for the week is 3.48%, and the volatility levels for the past 30 days are at 3.78% for Confluent Inc The simple moving average for the last 20 days is -3.29% for CFLT stock, with a simple moving average of 5.69% for the last 200 days.
Analysts’ Opinion of CFLT
Many brokerage firms have already submitted their reports for CFLT stocks, with Morgan Stanley repeating the rating for CFLT by listing it as a “Equal-Weight.” The predicted price for CFLT in the upcoming period, according to Morgan Stanley is $30 based on the research report published on January 16, 2025 of the current year 2025.
Robert W. Baird, on the other hand, stated in their research note that they expect to see CFLT reach a price target of $23. The rating they have provided for CFLT stocks is “Neutral” according to the report published on September 04th, 2024.
JP Morgan gave a rating of “Overweight” to CFLT, setting the target price at $25 in the report published on August 09th of the previous year.
CFLT Trading at -6.60% from the 50-Day Moving Average
After a stumble in the market that brought CFLT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -21.56% of loss for the given period.
Volatility was left at 3.78%, however, over the last 30 days, the volatility rate increased by 3.48%, as shares sank -6.62% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +4.09% upper at present.
During the last 5 trading sessions, CFLT rose by +2.08%, which changed the moving average for the period of 200-days by -6.94% in comparison to the 20-day moving average, which settled at $28.45. In addition, Confluent Inc saw -1.61% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at CFLT starting from Phan Kong, who sale 3,947 shares at the price of $28.74 back on Dec 20 ’24. After this action, Phan Kong now owns 179,939 shares of Confluent Inc, valued at $113,437 using the latest closing price.
Narkhede Neha, the Director of Confluent Inc, sale 186,300 shares at $30.65 during a trade that took place back on Dec 13 ’24, which means that Narkhede Neha is holding 20,247 shares at $5,710,300 based on the most recent closing price.
Stock Fundamentals for CFLT
Current profitability levels for the company are sitting at:
- -0.43 for the present operating margin
- 0.73 for the gross margin
The net margin for Confluent Inc stands at -0.38. The total capital return value is set at -0.19. Equity return is now at value -40.75, with -14.13 for asset returns.
Based on Confluent Inc (CFLT), the company’s capital structure generated 0.54 points at debt to capital in total, while cash flow to debt ratio is standing at 0.02.
Currently, EBITDA for the company is -430.01 million with net debt to EBITDA at -2.09. When we switch over and look at the enterprise to sales, we see a ratio of 10.72. The receivables turnover for the company is 3.29for trailing twelve months and the total asset turnover is 0.35. The liquidity ratio also appears to be rather interesting for investors as it stands at 4.15.
Conclusion
To put it simply, Confluent Inc (CFLT) has had a mixed performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
