Insider Selling: Elastic (NYSE:ESTC) Insider Sells 18,449 Shares of Stock

Key Points

• Elastic insider Ken Exner sold 18,449 shares on June 9 at an average price of $60.61, totaling about $1.12 million. The company said the sale was made to cover tax withholding obligations tied to vesting equity awards.
• Elastic recently reported stronger-than-expected quarterly results, with EPS of $0.61 versus the $0.56 estimate and revenue of $450.68 million, up 16% year over year. The company also issued FY 2027 and Q1 2027 guidance.
• Analysts remain broadly positive but have trimmed price targets in recent reports, with the consensus rating at “Moderate Buy” and an average price target of $80.04. Several firms lowered targets, reflecting some caution despite continued optimism.

Elastic N.V. (NYSE:ESTC - Get Free Report) insider Ken Exner sold 18,449 shares of the stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total transaction of $1,118,193.89. Following the completion of the transaction, the insider owned 360,037 shares in the company, valued at $21,821,842.57. The trade was a 4.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Elastic Price Performance

Shares of ESTC stock traded down $0.56 on Wednesday, hitting $60.70. 1,241,304 shares of the stock traded hands, compared to its average volume of 2,103,974. The firm has a market cap of $6.28 billion, a price-to-earnings ratio of 17.34, a PEG ratio of 86.23 and a beta of 1.00. Elastic N.V. has a 52 week low of $42.05 and a 52 week high of $96.07. The firm has a 50 day simple moving average of $52.16 and a two-hundred day simple moving average of $61.33. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.82 and a quick ratio of 1.82.

Elastic (NYSE:ESTC - Get Free Report) last announced its quarterly earnings data on Thursday, May 28th. The company reported $0.61 EPS for the quarter, beating the consensus estimate of $0.56 by $0.05. The firm had revenue of $450.68 million for the quarter, compared to the consensus estimate of $446.66 million. Elastic had a net margin of 21.14% and a negative return on equity of 2.02%. The company's revenue was up 16.0% on a year-over-year basis. During the same period last year, the firm earned $0.47 EPS. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. As a group, equities research analysts predict that Elastic N.V. will post 0.03 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on ESTC shares. Oppenheimer dropped their price target on shares of Elastic from $85.00 to $75.00 and set an "outperform" rating for the company in a research note on Friday, May 29th. Morgan Stanley reduced their price target on shares of Elastic from $80.00 to $73.00 and set an "overweight" rating for the company in a report on Monday, March 2nd. Piper Sandler reduced their price objective on shares of Elastic from $110.00 to $85.00 and set an "overweight" rating for the company in a research note on Friday, February 27th. The Goldman Sachs Group started coverage on shares of Elastic in a research report on Tuesday, April 21st. They set a "neutral" rating and a $50.00 target price on the stock. Finally, TD Cowen dropped their price objective on shares of Elastic from $65.00 to $60.00 and set a "hold" rating on the stock in a report on Tuesday, May 26th. Eighteen equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $80.04.

Institutional Investors Weigh In On Elastic

A number of hedge funds have recently modified their holdings of the company. Edgestream Partners L.P. purchased a new stake in shares of Elastic in the first quarter valued at about $444,000. Bull Harbor Capital LLC acquired a new stake in Elastic in the first quarter valued at approximately $456,000. Smith Group Asset Management LLC raised its holdings in Elastic by 2.2% during the first quarter. Smith Group Asset Management LLC now owns 37,168 shares of the company's stock worth $1,858,000 after purchasing an additional 795 shares in the last quarter. Amundi raised its holdings in Elastic by 37.2% during the first quarter. Amundi now owns 296,604 shares of the company's stock worth $14,827,000 after purchasing an additional 80,441 shares in the last quarter. Finally, California State Teachers Retirement System increased its holdings in shares of Elastic by 21.8% in the 1st quarter. California State Teachers Retirement System now owns 104,579 shares of the company's stock valued at $5,228,000 after acquiring an additional 18,716 shares during the period. Hedge funds and other institutional investors own 97.03% of the company's stock.

Elastic News Roundup

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: No clear positive company-specific catalyst was disclosed in the latest headlines.
• Neutral Sentiment: Several executives and insiders, including the CEO, CFO, CTO, CRO, CAO, and another insider, sold shares on June 9 at $60.61. The company said the transactions were made to cover tax withholding obligations tied to vesting equity awards, which makes them less concerning than open-market selling, but the large number of sales can still weigh on investor sentiment. Article
• Neutral Sentiment: Elastic also disclosed a new sales and marketing risk related to regulatory hurdles and budget pressures in government contracts, suggesting potential headwinds for revenue from public-sector customers. Article
• Negative Sentiment: The cluster of insider sales, especially the CEO’s and CFO’s larger transactions, may be read by investors as a cautious signal even though the company framed them as tax-related rather than discretionary selling.

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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