Elastic (NYSE:ESTC) CEO Sells $2,447,007.53 in Stock

Key Points

• Elastic CEO Ashutosh Kulkarni sold 40,373 shares on June 9 for about $2.45 million at an average price of $60.61. The company said the sale was to cover tax withholding tied to vested equity awards.
• Elastic’s stock slipped 0.9% to about $60.70, with the shares trading near their 200-day moving average of $61.33. The company’s market cap is roughly $6.28 billion.
• Recent operating results were solid: Elastic reported quarterly EPS of $0.61, beating estimates, on revenue of $450.68 million, up 16% year over year. Analysts currently view the stock as a Moderate Buy with a consensus price target of $80.04.

Elastic N.V. (NYSE:ESTC - Get Free Report) CEO Ashutosh Kulkarni sold 40,373 shares of the stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total transaction of $2,447,007.53. Following the sale, the chief executive officer owned 628,752 shares of the company's stock, valued at approximately $38,108,658.72. This represents a 6.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Elastic Trading Down 0.9%

Shares of Elastic stock traded down $0.56 during trading on Wednesday, reaching $60.70. 1,241,304 shares of the stock were exchanged, compared to its average volume of 2,103,974. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.72. The stock's fifty day moving average is $52.16 and its 200 day moving average is $61.33. The firm has a market cap of $6.28 billion, a price-to-earnings ratio of 17.34, a price-to-earnings-growth ratio of 86.23 and a beta of 1.00. Elastic N.V. has a 1 year low of $42.05 and a 1 year high of $96.07.

Elastic (NYSE:ESTC - Get Free Report) last posted its earnings results on Thursday, May 28th. The company reported $0.61 earnings per share for the quarter, topping analysts' consensus estimates of $0.56 by $0.05. The company had revenue of $450.68 million during the quarter, compared to analyst estimates of $446.66 million. Elastic had a net margin of 21.14% and a negative return on equity of 2.02%. Elastic's revenue for the quarter was up 16.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.47 earnings per share. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. As a group, equities research analysts expect that Elastic N.V. will post 0.03 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Elastic

Several institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. grew its position in Elastic by 7.4% in the 3rd quarter. Vanguard Group Inc. now owns 10,206,204 shares of the company's stock worth $862,322,000 after purchasing an additional 705,991 shares during the period. AQR Capital Management LLC grew its position in Elastic by 153.4% in the 4th quarter. AQR Capital Management LLC now owns 7,545,081 shares of the company's stock worth $569,201,000 after purchasing an additional 4,567,720 shares during the period. Pictet Asset Management Holding SA grew its position in Elastic by 43.2% in the 1st quarter. Pictet Asset Management Holding SA now owns 6,492,717 shares of the company's stock worth $324,550,000 after purchasing an additional 1,958,219 shares during the period. FIL Ltd grew its position in shares of Elastic by 36.9% during the 4th quarter. FIL Ltd now owns 3,628,748 shares of the company's stock valued at $273,753,000 after acquiring an additional 977,578 shares during the period. Finally, First Trust Advisors LP grew its position in shares of Elastic by 516.1% during the 1st quarter. First Trust Advisors LP now owns 2,627,636 shares of the company's stock valued at $131,356,000 after acquiring an additional 2,201,140 shares during the period. Institutional investors own 97.03% of the company's stock.

Elastic News Roundup

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 Upgrades and Downgrades

ESTC has been the subject of several research analyst reports. Stifel Nicolaus set a $65.00 price objective on shares of Elastic in a report on Friday, May 29th. Wolfe Research set a $55.00 price objective on shares of Elastic in a report on Friday, May 29th. Barclays lowered their price objective on shares of Elastic from $76.00 to $68.00 and set an "overweight" rating for the company in a report on Friday, May 29th. DA Davidson lowered their target price on shares of Elastic from $65.00 to $60.00 and set a "neutral" rating for the company in a report on Friday, May 29th. Finally, Piper Sandler lowered their target price on shares of Elastic from $110.00 to $85.00 and set an "overweight" rating for the company in a report on Friday, February 27th. Eighteen equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target 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.

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