Elastic (NYSE:ESTC) CTO Sells $19,294,000.00 in Stock

Key Points

• CTO Shay Banon sold 200,000 Elastic shares at an average price of $96.47, generating $19.29 million and reducing his position by 9.73%; he still owned about 1.85 million shares afterward.
• Banon also reported additional sales, bringing his transactions from August 31 through September 2 to approximately $44.5 million, raising concerns about insider profit-taking despite executives retaining sizable stakes.
• Elastic exceeded quarterly expectations with adjusted EPS of $0.70 versus $0.58 expected and revenue of $478.1 million, up 15.2% year over year. Analysts maintain a Moderate Buy consensus with an average price target of $94.12.

Elastic N.V. (NYSE:ESTC - Get Free Report) CTO Shay Banon sold 200,000 shares of the stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $96.47, for a total transaction of $19,294,000.00. Following the completion of the sale, the chief technology officer owned 1,854,978 shares of the company's stock, valued at approximately $178,949,727.66. This trade represents a 9.73% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website.

Shay Banon also recently made the following trade(s):

• On Wednesday, September 2nd, Shay Banon sold 165,171 shares of Elastic stock. The stock was sold at an average price of $90.26, for a total transaction of $14,908,334.46.
• On Tuesday, September 1st, Shay Banon sold 111,127 shares of Elastic stock. The shares were sold at an average price of $92.60, for a total transaction of $10,290,360.20.
• On Tuesday, June 9th, Shay Banon sold 9,288 shares of Elastic stock. The shares were sold at an average price of $60.61, for a total value of $562,945.68.

Elastic Stock Performance

Shares of NYSE ESTC traded down $2.96 during trading on Wednesday, reaching $89.43. 2,407,438 shares of the stock traded hands, compared to its average volume of 3,129,352. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.81 and a quick ratio of 1.68. The stock has a market capitalization of $9.39 billion, a P/E ratio of 25.05, a price-to-earnings-growth ratio of 8.95 and a beta of 1.03. Elastic N.V. has a 52-week low of $42.05 and a 52-week high of $108.00. The company has a 50-day moving average of $70.31 and a 200-day moving average of $59.69.

Elastic (NYSE:ESTC - Get Free Report) last issued its earnings results on Thursday, August 27th. The company reported $0.70 earnings per share for the quarter, topping analysts' consensus estimates of $0.58 by $0.12. The firm had revenue of $478.11 million during the quarter, compared to analyst estimates of $469.75 million. Elastic had a net margin of 20.84% and a negative return on equity of 0.35%. The company's quarterly revenue was up 15.2% on a year-over-year basis. During the same quarter last year, the business earned $0.60 earnings per share. Elastic has set its FY 2027 guidance at 3.290-3.370 EPS and its Q2 2027 guidance at 0.800-0.820 EPS. Analysts forecast that Elastic N.V. will post 0.56 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in ESTC. AQR Capital Management LLC lifted its holdings in Elastic by 153.4% during the fourth quarter. AQR Capital Management LLC now owns 7,545,081 shares of the company's stock worth $569,201,000 after buying an additional 4,567,720 shares during the period. Pictet Asset Management Holding SA lifted its holdings in shares of Elastic by 43.2% in the 1st quarter. Pictet Asset Management Holding SA now owns 6,492,717 shares of the company's stock valued at $324,550,000 after buying an additional 1,958,219 shares during the period. California State Teachers Retirement System lifted its holdings in Elastic by 5,082.4% in the second quarter. California State Teachers Retirement System now owns 5,419,694 shares of the company's stock valued at $309,031,000 after acquiring an additional 5,315,115 shares during the period. FIL Ltd increased its holdings 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 purchasing an additional 977,578 shares in the last quarter. Finally, First Trust Advisors LP increased its holdings in Elastic by 516.1% in the first quarter. First Trust Advisors LP now owns 2,627,636 shares of the company's stock valued at $131,356,000 after buying an additional 2,201,140 shares in the last quarter. Hedge funds and other institutional investors own 97.03% of the company's stock.

Key Headlines Impacting Elastic

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Elastic’s earnings outlook is benefiting from upward estimate revisions, which could support the stock if analysts continue to raise forecasts. Can Elastic Run Higher on Rising Earnings Estimates?
• Positive Sentiment: RBC Capital initiated or reiterated a Buy rating, adding favorable sell-side support. Elastic Receives a Buy from RBC Capital
• Neutral Sentiment: Elastic delivered an earnings beat, highlighted growing enterprise adoption of its AI-powered search and cloud platform, and raised or maintained guidance pointing to continued fiscal 2027 growth. Still, DA Davidson remained Neutral, arguing that one strong quarter is not sufficient confirmation of the longer-term growth trajectory. Elastic Beat and Raised Guidance
• Negative Sentiment: CTO Shay Banon sold 476,298 shares across August 31 through September 2 for approximately $44.5 million, reducing his holdings by roughly 22% across the reported transactions. Additional sales by Chief Accounting Officer Jane Bone and insider Carolyn Herzog totaled about $1.3 million. The concentration of selling by senior insiders may reinforce profit-taking concerns, although the executives retain sizable positions. Elastic Insider Sale Filings
• Negative Sentiment: A separate analysis downgraded Elastic, reflecting concern that expectations and valuation may have moved ahead of fundamentals after the earnings-driven rally. Elastic Adjusting My Position After This Sprint

Wall Street Analyst Weigh In

ESTC has been the subject of a number of recent analyst reports. Scotiabank upped their target price on Elastic from $58.00 to $84.00 and gave the company a "sector perform" rating in a report on Friday, August 28th. Piper Sandler reiterated a "hold" rating on shares of Elastic in a report on Friday, August 28th. Bank of America raised their price target on Elastic from $90.00 to $108.00 and gave the stock a "neutral" rating in a research note on Friday, August 28th. Robert W. Baird upped their price target on shares of Elastic from $95.00 to $120.00 and gave the company an "outperform" rating in a research report on Friday, August 28th. Finally, Truist Financial upped their price target on Elastic from $80.00 to $100.00 and gave the stock a "buy" rating in a research report on Thursday, August 20th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and thirteen have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $94.12.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source