Insider Selling: Elastic (NYSE:ESTC) CTO Sells 9,288 Shares of Stock

Elastic N.V. (NYSE:ESTC) CTO Shay Banon sold 9,288 shares of the stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total value of $562,945.68. Following the transaction, the chief technology officer owned 4,417,140 shares of the company’s stock, valued at approximately $267,722,855.40. This trade represents a 0.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Elastic Stock Down 0.9%

Shares of Elastic stock traded down $0.56 on Wednesday, hitting $60.70. 1,241,304 shares of the company’s stock traded hands, compared to its average volume of 2,103,974. The firm’s 50-day moving average is $52.16 and its 200 day moving average is $61.33. Elastic N.V. has a 52-week low of $42.05 and a 52-week high of $96.07. The stock has a market cap of $6.28 billion, a P/E ratio of 17.34, a PEG ratio of 86.23 and a beta of 1.00. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.72.

Elastic (NYSE:ESTC) last announced its quarterly earnings data on Thursday, May 28th. The company reported $0.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.05. Elastic had a negative return on equity of 2.02% and a net margin of 21.14%.The firm had revenue of $450.68 million for the quarter, compared to analysts’ expectations of $446.66 million. During the same period last year, the business posted $0.47 earnings per share. The firm’s revenue for the quarter was up 16.0% on a year-over-year basis. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. Equities analysts anticipate that Elastic N.V. will post 0.03 earnings per share for the current year.

Institutional Investors Weigh In On Elastic

Several large investors have recently added to or reduced their stakes in ESTC. Focus Partners Wealth acquired a new stake in Elastic in the first quarter worth $494,000. Northwestern Mutual Wealth Management Co. increased its position in Elastic by 17.3% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,159 shares of the company’s stock worth $98,000 after buying an additional 171 shares during the period. Invesco Ltd. increased its position in Elastic by 11.7% in the second quarter. Invesco Ltd. now owns 95,332 shares of the company’s stock worth $8,039,000 after buying an additional 9,990 shares during the period. EverSource Wealth Advisors LLC increased its position in Elastic by 400.0% in the second quarter. EverSource Wealth Advisors LLC now owns 2,110 shares of the company’s stock worth $178,000 after buying an additional 1,688 shares during the period. Finally, Cerity Partners LLC increased its position in Elastic by 24.7% in the second quarter. Cerity Partners LLC now owns 30,545 shares of the company’s stock worth $2,576,000 after buying an additional 6,056 shares during the period. 97.03% of the stock is owned by institutional investors and hedge funds.

More Elastic News

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: No clear positive company-specific catalyst was disclosed in the latest headlines.
• Neutral Sentiment: Several executives and insiders, including the CEO, CFO, CTO, CRO, CAO, and another insider, sold shares on June 9 at $60.61. The company said the transactions were made to cover tax withholding obligations tied to vesting equity awards, which makes them less concerning than open-market selling, but the large number of sales can still weigh on investor sentiment. Article
• Neutral Sentiment: Elastic also disclosed a new sales and marketing risk related to regulatory hurdles and budget pressures in government contracts, suggesting potential headwinds for revenue from public-sector customers. Article
• Negative Sentiment: The cluster of insider sales, especially the CEO’s and CFO’s larger transactions, may be read by investors as a cautious signal even though the company framed them as tax-related rather than discretionary selling.

Analyst Ratings Changes

ESTC has been the topic of several research analyst reports. Citigroup raised their price objective on Elastic from $95.00 to $104.00 and gave the stock a “buy” rating in a research note on Friday, May 29th. Stifel Nicolaus set a $65.00 price objective on Elastic in a research note on Friday, May 29th. Royal Bank Of Canada reduced their price objective on Elastic from $80.00 to $70.00 and set an “outperform” rating on the stock in a research note on Thursday, April 16th. Wells Fargo & Company reduced their price objective on Elastic from $75.00 to $60.00 and set an “equal weight” rating on the stock in a research note on Friday, February 27th. Finally, Canaccord Genuity Group reduced their price objective on Elastic from $90.00 to $80.00 and set a “buy” rating on the stock in a research note on Friday, May 29th. Eighteen investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $80.04.

Elastic Company Profile

Elastic N.V. operates as a search and analytics company, offering a suite of open source and subscription-based solutions for search, observability and security use cases. Its flagship product, Elasticsearch, enables fast and scalable full-text search and analytics across large volumes of structured and unstructured data. Complementary tools such as Kibana provide visualization capabilities, while Beats and Logstash serve as lightweight data shippers and data processing pipelines, respectively.

The company was founded in 2012 by Shay Banon, who serves as chief technology officer, and Steven Schuurman.