Meritage Portfolio Management Takes Position in Elastic N.V. $ESTC

Key Points

• Meritage Portfolio Management initiated a new stake in Elastic N.V. by purchasing 8,193 shares valued at approximately $691,000.
• Elastic reported a quarterly revenue of $415.29 million, exceeding expectations, but reported a loss with earnings per share (EPS) of ($0.08), missing the consensus estimate significantly.
• The company's board approved a stock repurchase program signaling confidence in the stock's valuation, enabling repurchases through open market transactions.

Meritage Portfolio Management bought a new stake in shares of Elastic N.V. (NYSE:ESTC - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund bought 8,193 shares of the company's stock, valued at approximately $691,000.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. CWM LLC grew its holdings in Elastic by 11.0% in the second quarter. CWM LLC now owns 54,941 shares of the company's stock worth $4,633,000 after purchasing an additional 5,464 shares during the period. Blue Zone Wealth Advisors LLC increased its position in Elastic by 7.5% during the 2nd quarter. Blue Zone Wealth Advisors LLC now owns 55,230 shares of the company's stock valued at $4,658,000 after buying an additional 3,846 shares in the last quarter. IFP Advisors Inc increased its position in Elastic by 21.6% during the 2nd quarter. IFP Advisors Inc now owns 2,946 shares of the company's stock valued at $248,000 after buying an additional 523 shares in the last quarter. Vontobel Holding Ltd. bought a new position in Elastic during the 2nd quarter valued at approximately $1,210,000. Finally, Slow Capital Inc. increased its position in Elastic by 4.5% during the 2nd quarter. Slow Capital Inc. now owns 51,373 shares of the company's stock valued at $4,332,000 after buying an additional 2,222 shares in the last quarter. Hedge funds and other institutional investors own 97.03% of the company's stock.

Elastic Trading Up 6.1%

Shares of NYSE:ESTC opened at $86.52 on Monday. The stock has a market capitalization of $9.19 billion, a price-to-earnings ratio of -108.15 and a beta of 1.05. The company has a debt-to-equity ratio of 0.59, a quick ratio of 2.09 and a current ratio of 2.09. The stock's 50-day simple moving average is $83.40 and its two-hundred day simple moving average is $84.40. Elastic N.V. has a 52-week low of $70.14 and a 52-week high of $118.84.

Elastic (NYSE:ESTC - Get Free Report) last announced its earnings results on Thursday, August 28th. The company reported ($0.08) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.50). The business had revenue of $415.29 million for the quarter, compared to the consensus estimate of $397.13 million. Elastic had a negative net margin of 5.38% and a negative return on equity of 1.68%. The business's quarterly revenue was up 19.5% compared to the same quarter last year. During the same quarter last year, the firm posted $0.35 earnings per share. Elastic has set its FY 2026 guidance at 2.290-2.350 EPS. Q2 2026 guidance at 0.560-0.580 EPS. Analysts expect that Elastic N.V. will post -0.77 EPS for the current year.

Elastic declared that its board has approved a stock repurchase program on Thursday, October 9th that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Shares repurchase programs are typically a sign that the company's leadership believes its shares are undervalued.

Insider Transactions at Elastic

In other news, CFO Navam Welihinda sold 1,256 shares of the company's stock in a transaction on Monday, October 6th. The stock was sold at an average price of $84.58, for a total value of $106,232.48. Following the completion of the sale, the chief financial officer directly owned 129,247 shares in the company, valued at $10,931,711.26. This represents a 0.96% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Ashutosh Kulkarni sold 5,000 shares of the firm's stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $88.12, for a total value of $440,600.00. Following the completion of the transaction, the chief executive officer directly owned 452,314 shares in the company, valued at $39,857,909.68. This trade represents a 1.09% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 350,792 shares of company stock worth $30,978,369 over the last three months. 12.70% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on ESTC shares. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Elastic in a research report on Wednesday, October 8th. DA Davidson initiated coverage on Elastic in a research note on Friday, August 29th. They set a "neutral" rating and a $105.00 target price on the stock. Monness Crespi & Hardt increased their target price on Elastic from $111.00 to $150.00 and gave the company a "buy" rating in a research note on Friday, August 29th. Needham & Company LLC reiterated a "hold" rating on shares of Elastic in a research note on Friday. Finally, Citigroup reiterated a "buy" rating on shares of Elastic in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $119.00.

About Elastic

Elastic N.V., a data analytics company, delivers solutions designed to run in public or private clouds in multi-cloud environments. It primarily offers Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as performs search, analysis, and visualization on that data.

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