Clearline Capital LP Acquires 43,350 Shares of Elastic N.V. $ESTC

Key Points

• Clearline Capital LP boosted its stake in Elastic by 224.6% in the fourth quarter, buying 43,350 additional shares to bring its total holdings to 62,650 shares worth about $4.7 million.
• Elastic reported better-than-expected quarterly results, with EPS of $0.61 versus the $0.56 estimate and revenue of $450.68 million, up 16% year over year.
• Analyst sentiment remains mixed but generally positive, with a consensus rating of Moderate Buy and an average price target of $80.04, even as several firms recently trimmed targets or downgraded the stock.

Clearline Capital LP grew its holdings in Elastic N.V. (NYSE:ESTC - Free Report) by 224.6% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 62,650 shares of the company's stock after purchasing an additional 43,350 shares during the quarter. Clearline Capital LP owned approximately 0.06% of Elastic worth $4,726,000 at the end of the most recent reporting period.

Other hedge funds also recently modified their holdings of the company. Sound Income Strategies LLC bought a new position in shares of Elastic in the 4th quarter valued at about $25,000. Geneos Wealth Management Inc. bought a new position in shares of Elastic in the 2nd quarter valued at about $31,000. Activest Wealth Management boosted its stake in shares of Elastic by 3,181.3% in the 4th quarter. Activest Wealth Management now owns 525 shares of the company's stock valued at $40,000 after purchasing an additional 509 shares during the last quarter. Aster Capital Management DIFC Ltd boosted its stake in shares of Elastic by 206.1% in the 4th quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company's stock valued at $42,000 after purchasing an additional 371 shares during the last quarter. Finally, Quarry LP boosted its stake in shares of Elastic by 16,200.0% in the 4th quarter. Quarry LP now owns 652 shares of the company's stock valued at $49,000 after purchasing an additional 648 shares during the last quarter. Institutional investors own 97.03% of the company's stock.

Elastic Stock Performance

Shares of ESTC stock opened at $58.50 on Thursday. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.68 and a current ratio of 1.68. The company has a market capitalization of $6.08 billion, a P/E ratio of 16.71, a price-to-earnings-growth ratio of 19.87 and a beta of 1.00. The company's 50 day moving average price is $53.38 and its two-hundred day moving average price is $60.84. Elastic N.V. has a 52 week low of $42.05 and a 52 week high of $96.07.

Elastic (NYSE:ESTC - Get Free Report) last announced its earnings results on Thursday, May 28th. The company reported $0.61 EPS for the quarter, topping the consensus estimate of $0.56 by $0.05. The firm had revenue of $450.68 million for the quarter, compared to the consensus estimate of $446.66 million. Elastic had a net margin of 21.14% and a negative return on equity of 1.82%. The business's quarterly revenue was up 16.0% on a year-over-year basis. During the same period last year, the company posted $0.47 EPS. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. On average, analysts expect that Elastic N.V. will post 0.18 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. Rothschild & Co Redburn began coverage on shares of Elastic in a research note on Thursday, April 23rd. They issued a "neutral" rating and a $49.00 target price on the stock. Wall Street Zen lowered shares of Elastic from a "buy" rating to a "hold" rating in a research note on Saturday, June 13th. Scotiabank reduced their price objective on shares of Elastic from $61.00 to $58.00 and set a "sector perform" rating on the stock in a research note on Friday, May 29th. Truist Financial reduced their price objective on shares of Elastic from $105.00 to $80.00 and set a "buy" rating on the stock in a research note on Friday, February 27th. Finally, Canaccord Genuity Group reduced their price objective on shares of Elastic from $90.00 to $80.00 and set a "buy" rating on the stock in a research note on Friday, May 29th. Eighteen equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $80.04.

Insider Activity

In other Elastic news, insider Carolyn Herzog sold 9,485 shares of the firm's stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total transaction of $574,885.85. Following the sale, the insider directly owned 128,439 shares in the company, valued at approximately $7,784,687.79. This trade represents a 6.88% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Jane E. Bone sold 1,104 shares of the firm's stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total transaction of $66,913.44. Following the sale, the chief accounting officer owned 53,415 shares in the company, valued at $3,237,483.15. This trade represents a 2.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 110,099 shares of company stock worth $6,673,100. Corporate insiders own 12.70% of the company's stock.

Elastic 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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