Elastic Target of Unusually High Options Trading (NYSE:ESTC)

Key Points

• Unusual options activity: Investors purchased 4,771 Elastic call options, roughly 101% above the average volume of 2,375 contracts.
• Solid quarterly results: Elastic reported adjusted EPS of $0.61, beating estimates by $0.05, while revenue rose 16% year over year to $450.68 million.
• Analyst sentiment is moderately bullish: Seventeen analysts rate the stock a Buy and 13 rate it Hold, producing a “Moderate Buy” consensus and an average price target of $80.33.

Elastic N.V. (NYSE:ESTC - Get Free Report) was the target of some unusual options trading on Friday. Stock investors bought 4,771 call options on the company. This is an increase of approximately 101% compared to the average volume of 2,375 call options.

Elastic Stock Performance

Shares of ESTC traded down $1.47 on Friday, reaching $84.56. 878,243 shares of the stock traded hands, compared to its average volume of 2,034,594. The stock's 50-day moving average price is $62.74 and its 200-day moving average price is $57.48. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.68 and a quick ratio of 1.68. The firm has a market cap of $8.79 billion, a price-to-earnings ratio of 24.14, a P/E/G ratio of 17.47 and a beta of 0.98. Elastic has a 12 month low of $42.05 and a 12 month high of $96.07.

Elastic (NYSE:ESTC - Get Free Report) last announced its quarterly earnings results on Thursday, May 28th. The company reported $0.61 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.05. Elastic had a net margin of 21.14% and a negative return on equity of 1.82%. The firm had revenue of $450.68 million for the quarter, compared to analyst estimates of $446.66 million. During the same quarter in the previous year, the firm posted $0.47 EPS. The business'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 forecast that Elastic will post 0.26 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. Piper Sandler restated an "overweight" rating on shares of Elastic in a research note on Friday, June 26th. Weiss Ratings upgraded shares of Elastic from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, July 15th. Jefferies Financial Group reduced their price target on shares of Elastic from $95.00 to $75.00 and set a "buy" rating for the company in a report on Friday, May 29th. Citigroup boosted their price objective on shares of Elastic from $95.00 to $104.00 and gave the stock a "buy" rating in a report on Friday, May 29th. Finally, Cantor Fitzgerald reaffirmed a "neutral" rating and set a $59.00 price objective on shares of Elastic in a research report on Thursday, June 25th. Seventeen research analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $80.33.

Insiders Place Their Bets

In other news, insider Ken Exner sold 18,449 shares of the firm's stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total value of $1,118,193.89. Following the sale, the insider directly owned 360,037 shares of the company's stock, valued at approximately $21,821,842.57. This trade represents a 4.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Mark Eugene Dodds sold 18,439 shares of the business's stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total value of $1,117,587.79. Following the transaction, the executive directly owned 298,211 shares of the company's stock, valued at $18,074,568.71. This represents a 5.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 110,099 shares of company stock worth $6,673,100 in the last three months. 12.70% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ESTC. Geneos Wealth Management Inc. acquired a new position in shares of Elastic in the 2nd quarter worth approximately $31,000. Bessemer Group Inc. acquired a new position in Elastic during the first quarter worth $25,000. Activest Wealth Management raised its stake in Elastic by 3,181.2% during the fourth quarter. Activest Wealth Management now owns 525 shares of the company's stock worth $40,000 after acquiring an additional 509 shares in the last quarter. Aster Capital Management DIFC Ltd lifted its holdings in shares of Elastic by 206.1% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company's stock valued at $42,000 after acquiring an additional 371 shares during the period. Finally, Basecamp Wealth Advisors LLC acquired a new stake in shares of Elastic in the 1st quarter valued at $28,000. Institutional investors own 97.03% of the company's stock.

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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