Insider Selling: Elastic (NYSE:ESTC) CTO Sells $16,932,600.00 in Stock

Key Points

• Elastic CTO Shay Banon sold 180,000 shares at an average price of $94.07, generating $16.93 million and reducing his stake by 4.08% to about 4.24 million shares. He also made several additional sales in the preceding days.
• Elastic reported quarterly earnings of $0.70 per share, exceeding estimates of $0.58, while revenue reached $478.11 million, up 15.2% year over year and above expectations.
• Despite the insider selling, analysts maintain a “Moderate Buy” consensus, with an average price target of $94.12; ESTC recently traded at $88.59 and has 97.03% institutional ownership.

Elastic N.V. (NYSE:ESTC - Get Free Report) CTO Shay Banon sold 180,000 shares of the business's stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $94.07, for a total transaction of $16,932,600.00. Following the sale, the chief technology officer owned 4,237,140 shares of the company's stock, valued at approximately $398,587,759.80. The trade was a 4.08% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

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

• On Friday, September 4th, Shay Banon sold 80,583 shares of Elastic stock. The stock was sold at an average price of $92.65, for a total transaction of $7,466,014.95.
• On Thursday, September 3rd, Shay Banon sold 23,702 shares of Elastic stock. The shares were sold at an average price of $94.11, for a total transaction of $2,230,595.22.
• On Wednesday, September 2nd, Shay Banon sold 165,171 shares of Elastic stock. The shares were 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 stock was sold at an average price of $92.60, for a total transaction of $10,290,360.20.
• On Monday, August 31st, Shay Banon sold 200,000 shares of Elastic stock. The stock was sold at an average price of $96.47, for a total transaction of $19,294,000.00.

Elastic Stock Performance

ESTC stock traded down $3.22 during midday trading on Tuesday, reaching $88.59. The company had a trading volume of 2,487,604 shares, compared to its average volume of 2,174,470. The firm has a market capitalization of $9.30 billion, a PE ratio of 24.82, a P/E/G ratio of 8.89 and a beta of 1.03. The stock has a 50 day moving average price of $72.57 and a 200 day moving average price of $60.37. Elastic N.V. has a fifty-two week low of $42.05 and a fifty-two week high of $108.00. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of 0.44.

Elastic (NYSE:ESTC - Get Free Report) last announced its quarterly 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 business had revenue of $478.11 million for the quarter, compared to analysts' expectations of $469.75 million. Elastic had a negative return on equity of 0.35% and a net margin of 20.84%.The business's quarterly revenue was up 15.2% on a year-over-year basis. During the same period in the prior 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. Analysts anticipate that Elastic N.V. will post 0.56 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on ESTC. Robert W. Baird lifted their price objective 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. Needham & Company LLC restated a "hold" rating on shares of Elastic in a research note on Friday, August 28th. Wells Fargo & Company lifted their price target on Elastic from $60.00 to $80.00 and gave the company an "equal weight" rating in a report on Tuesday, August 25th. Zacks Research raised Elastic from a "hold" rating to a "strong-buy" rating in a report on Friday, August 28th. Finally, Cantor Fitzgerald raised their target price on Elastic from $91.00 to $100.00 and gave the company a "neutral" rating in a research report on Friday, August 28th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and thirteen have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $94.12.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Bessemer Group Inc. acquired a new stake in shares of Elastic in the first quarter valued at $25,000. Basecamp Wealth Advisors LLC acquired a new position in Elastic in the first quarter worth approximately $28,000. Geneos Wealth Management Inc. acquired a new position in Elastic in the second quarter worth approximately $31,000. Harbor Investment Advisory LLC bought a new position in shares of Elastic in the second quarter valued at $42,000. Finally, Aster Capital Management DIFC Ltd lifted its position in shares of Elastic by 206.1% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company's stock valued at $42,000 after acquiring an additional 371 shares during the last quarter. 97.03% of the stock is currently owned by institutional investors.

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.

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