TimesSquare Capital Management LLC Lowers Stake in Elastic N.V. $ESTC

Key Points

• TimesSquare Capital Management trimmed its Elastic stake by 4.8% in the fourth quarter, selling 32,513 shares and ending with 639,662 shares worth about $48.3 million.
• Elastic reported stronger-than-expected quarterly results, with EPS of $0.73 versus the $0.64 consensus and revenue of $449.9 million, up 17.7% year over year.
• Despite the beat, insider selling and cautious analyst moves stood out: executives sold shares in March, and several firms cut price targets even as the stock maintained a “Moderate Buy” analyst rating overall.

TimesSquare Capital Management LLC cut its position in shares of Elastic N.V. (NYSE:ESTC - Free Report) by 4.8% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 639,662 shares of the company's stock after selling 32,513 shares during the quarter. TimesSquare Capital Management LLC owned approximately 0.61% of Elastic worth $48,256,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also modified their holdings of the company. Sound Income Strategies LLC purchased a new stake in shares of Elastic during the fourth quarter worth about $25,000. Geneos Wealth Management Inc. purchased a new stake in shares of Elastic during the second quarter worth about $31,000. Activest Wealth Management grew its holdings in shares of Elastic by 3,181.3% during the fourth quarter. Activest Wealth Management now owns 525 shares of the company's stock worth $40,000 after buying an additional 509 shares in the last quarter. Smartleaf Asset Management LLC grew its holdings in shares of Elastic by 75.6% during the third quarter. Smartleaf Asset Management LLC now owns 662 shares of the company's stock worth $58,000 after buying an additional 285 shares in the last quarter. Finally, Larson Financial Group LLC grew its holdings in shares of Elastic by 1,347.1% during the third quarter. Larson Financial Group LLC now owns 738 shares of the company's stock worth $62,000 after buying an additional 687 shares in the last quarter. 97.03% of the stock is currently owned by hedge funds and other institutional investors.

Elastic Stock Performance

Shares of ESTC stock opened at $53.96 on Tuesday. Elastic N.V. has a one year low of $42.05 and a one year high of $96.07. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.82 and a current ratio of 1.82. The company has a 50 day moving average price of $49.91 and a 200 day moving average price of $64.72. The firm has a market capitalization of $5.59 billion, a price-to-earnings ratio of -67.46, a price-to-earnings-growth ratio of 63.83 and a beta of 0.88.

Elastic (NYSE:ESTC - Get Free Report) last issued its quarterly earnings results on Thursday, February 26th. The company reported $0.73 EPS for the quarter, topping the consensus estimate of $0.64 by $0.09. Elastic had a negative net margin of 5.04% and a negative return on equity of 2.34%. The firm had revenue of $449.88 million during the quarter, compared to analyst estimates of $438.37 million. During the same quarter in the prior year, the business posted $0.63 earnings per share. Elastic's revenue for the quarter was up 17.7% compared to the same quarter last year. Elastic has set its FY 2026 guidance at 2.500-2.540 EPS and its Q4 2026 guidance at 0.550-0.570 EPS. Sell-side analysts anticipate that Elastic N.V. will post 0.04 EPS for the current year.

Insider Activity at Elastic

In other Elastic news, insider Carolyn Herzog sold 3,989 shares of the business's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $52.28, for a total transaction of $208,544.92. Following the completion of the sale, the insider directly owned 85,335 shares in the company, valued at $4,461,313.80. The trade was a 4.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Jane E. Bone sold 887 shares of the business's stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $52.28, for a total transaction of $46,372.36. Following the sale, the chief accounting officer owned 42,284 shares of the company's stock, valued at approximately $2,210,607.52. This represents a 2.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 38,188 shares of company stock valued at $1,996,469 over the last quarter. Company insiders own 12.70% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on ESTC shares. Citigroup dropped their price target on shares of Elastic from $115.00 to $95.00 and set a "buy" rating for the company in a research report on Friday, February 20th. Guggenheim reaffirmed a "buy" rating and set a $116.00 price target on shares of Elastic in a research report on Wednesday, February 18th. JPMorgan Chase & Co. dropped their price target on shares of Elastic from $113.00 to $98.00 and set an "overweight" rating for the company in a research report on Friday, February 20th. Royal Bank Of Canada dropped their price target on shares of Elastic from $80.00 to $70.00 and set an "outperform" rating for the company in a research report on Thursday, April 16th. Finally, Rosenblatt Securities dropped their price target on shares of Elastic from $130.00 to $110.00 and set a "buy" rating for the company in a research report on Friday, January 30th. Seventeen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $90.77.

About Elastic

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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