Insider Selling: Elastic (NYSE:ESTC) CEO Sells 29,227 Shares

Key Points

• Elastic CEO Ashutosh Kulkarni sold 29,227 shares at an average price of $87.78, worth approximately $2.57 million. The sale reduced his direct ownership by 4.65% and was made to cover tax withholding tied to vested equity awards.
• Elastic reported quarterly EPS of $0.70, beating estimates by $0.12, while revenue of $478.11 million exceeded expectations and increased 15.2% year over year.
• Analysts maintain a “Moderate Buy” consensus rating, with an average price target of $94.12; Oppenheimer, JPMorgan, and Citigroup recently raised their targets, while institutional investors own 97.03% of the company.

Elastic N.V. (NYSE:ESTC - Get Free Report) CEO Ashutosh Kulkarni sold 29,227 shares of the stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $87.78, for a total value of $2,565,546.06. Following the sale, the chief executive officer directly owned 599,525 shares in the company, valued at approximately $52,626,304.50. This trade represents a 4.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Elastic Price Performance

Shares of NYSE ESTC traded down $3.13 during mid-day trading on Thursday, reaching $83.45. The company had a trading volume of 2,100,369 shares, compared to its average volume of 2,176,438. Elastic N.V. has a one year low of $42.05 and a one year high of $108.00. The business's 50-day simple moving average is $73.76 and its 200 day simple moving average is $60.74. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.81 and a current ratio of 1.81. The firm has a market cap of $8.76 billion, a price-to-earnings ratio of 23.38, a PEG ratio of 8.56 and a beta of 1.03.

Elastic (NYSE:ESTC - Get Free Report) last released its earnings results on Thursday, August 27th. The company reported $0.70 EPS for the quarter, beating the consensus estimate of $0.58 by $0.12. The firm had revenue of $478.11 million for 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 business's quarterly revenue was up 15.2% compared to the same quarter last year. During the same period last year, the firm earned $0.60 EPS. Elastic has set its FY 2027 guidance at 3.290-3.370 EPS and its Q2 2027 guidance at 0.800-0.820 EPS. On average, research analysts predict that Elastic N.V. will post 0.56 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several research analysts have commented on ESTC shares. Oppenheimer boosted their price objective on shares of Elastic from $100.00 to $118.00 and gave the company an "outperform" rating in a research report on Friday, August 28th. JPMorgan Chase & Co. raised their target price on Elastic from $93.00 to $105.00 and gave the company an "overweight" rating in a report on Friday, August 28th. Citigroup lifted their price target on Elastic from $104.00 to $128.00 and gave the company a "buy" rating in a research note on Friday, August 28th. Weiss Ratings raised Elastic from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, July 15th. Finally, TD Cowen upped their price objective on Elastic from $55.00 to $70.00 and gave the stock a "hold" rating in a research report on Tuesday, August 25th. One research 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. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $94.12.

Institutional Trading of Elastic

Hedge funds and other institutional investors have recently modified their holdings of the stock. Orion Porfolio Solutions LLC boosted its holdings in shares of Elastic by 1.4% during the 3rd quarter. Orion Porfolio Solutions LLC now owns 8,593 shares of the company's stock valued at $726,000 after acquiring an additional 118 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in Elastic by 17.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,159 shares of the company's stock worth $98,000 after purchasing an additional 171 shares in the last quarter. Public Employees Retirement System of Ohio increased its holdings in Elastic by 0.6% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 28,323 shares of the company's stock worth $2,393,000 after purchasing an additional 175 shares in the last quarter. California State Teachers Retirement System raised its position in Elastic by 0.3% in the second quarter. California State Teachers Retirement System now owns 83,403 shares of the company's stock valued at $7,033,000 after purchasing an additional 219 shares during the last quarter. Finally, 180 Wealth Advisors LLC increased its stake in shares of Elastic by 4.6% in the second quarter. 180 Wealth Advisors LLC now owns 6,027 shares of the company's stock valued at $344,000 after buying an additional 263 shares during the period. Institutional investors own 97.03% of the company's stock.

About Elastic

Elastic N.V. develops search, observability and security software for organizations that need to find, analyze and act on data. Its core technology, Elasticsearch, is a distributed search and analytics engine that can process structured and unstructured information from applications, websites, logs and other sources.

The company offers its platform through Elastic Cloud, a managed cloud service available across major public-cloud environments, as well as through self-managed deployments.

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