Brad Gerstner, a major owner at
Confluent (CFLT), recently added 439,200 shares. The buy increased his holdings by 8.3 percent, and came to a total price of just over $17.1 million.
That follows up on two buys he also made in the last month, one for 175,000 shares just over $6.7 million, and one for 201,700 shares for just over $7 million. Going back further, company insiders have been more prone to sell shares.
Insiders own just under 0.4 percent of the real-time data streaming platform.
As with many other tech names, the company has seen a drop in the past year, with shares down about 15 percent. The company is deeply unprofitable, but revenue is up nearly 71 percent, and the company has a reasonably strong balance sheet.
Action to take: Shares have started to trend higher in the past few weeks, and may have more room to rise. Shares are still down more than 60 percent from their 52-week highs, going back to the company’s IPO. As an early-stage tech player, the company is a long way from paying a dividend.
For traders, the October $55 calls look reasonably priced to profit from a further move higher in shares. Last going for about $4.45, traders can likely turn a rebound in shares into a mid-to-high double-digit profit.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.