Mark Eugene Dodds Sells 18,439 Shares of Elastic (NYSE:ESTC) Stock

Key Points

• Elastic CRO Mark Eugene Dodds sold 18,439 shares on June 9 at an average price of $60.61, worth about $1.12 million. The sale reduced his stake by 5.82% and was reported as being tied to tax withholding on vested equity awards.
• Elastic recently posted better-than-expected quarterly results, with EPS of $0.61 versus estimates of $0.56 and revenue of $450.68 million, up 16% year over year. The company also issued FY 2027 and Q1 2027 guidance.
• Despite the earnings beat, the stock has faced mixed sentiment from analysts and investors. Multiple insiders sold shares, and Elastic has also disclosed potential government-contract risks, while Wall Street’s consensus remains a “Moderate Buy” with a $80.04 target price.

Elastic N.V. (NYSE:ESTC - Get Free Report) CRO Mark Eugene Dodds sold 18,439 shares of the company's stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total transaction of $1,117,587.79. Following the completion of the sale, the executive directly owned 298,211 shares in the company, valued at approximately $18,074,568.71. The trade was a 5.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Elastic Stock Performance

NYSE:ESTC traded down $0.56 during mid-day trading on Wednesday, hitting $60.70. The company's stock had a trading volume of 1,241,304 shares, compared to its average volume of 2,103,974. The business's fifty day moving average is $52.16 and its two-hundred day moving average is $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 N.V. has a 1 year low of $42.05 and a 1 year high of $96.07. The stock 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 (NYSE:ESTC - Get Free Report) last posted its earnings results on Thursday, May 28th. The company reported $0.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.05. Elastic had a net margin of 21.14% and a negative return on equity of 2.02%. The business had revenue of $450.68 million for the quarter, compared to analyst estimates of $446.66 million. During the same period in the prior year, the company posted $0.47 EPS. The company's revenue for the quarter was up 16.0% on a year-over-year basis. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. Analysts anticipate that Elastic N.V. will post 0.03 EPS for the current fiscal year.

Elastic News Summary

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.

Analyst Ratings Changes

Several research firms have recently weighed in on ESTC. Rothschild & Co Redburn initiated coverage on shares of Elastic in a research note on Thursday, April 23rd. They issued a "neutral" rating and a $49.00 price target for the company. Piper Sandler reduced their price objective on shares of Elastic from $110.00 to $85.00 and set an "overweight" rating on the stock in a report on Friday, February 27th. Morgan Stanley cut their price target on shares of Elastic from $80.00 to $73.00 and set an "overweight" rating on the stock in a research note on Monday, March 2nd. Jefferies Financial Group dropped their price objective on shares of Elastic from $95.00 to $75.00 and set a "buy" rating on the stock in a research note on Friday, May 29th. Finally, William Blair began coverage on shares of Elastic in a report on Friday, May 22nd. They issued an "outperform" rating on the stock. Eighteen research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Elastic presently has a consensus rating of "Moderate Buy" and a consensus target price of $80.04.

Institutional Trading of Elastic

Institutional investors have recently added to or reduced their stakes in the stock. Sound Income Strategies LLC purchased a new stake in Elastic during the fourth quarter worth about $25,000. Geneos Wealth Management Inc. acquired a new position in Elastic during the second quarter worth about $31,000. Bessemer Group Inc. acquired a new position in Elastic during the first quarter worth about $25,000. Activest Wealth Management raised its position in 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 acquiring an additional 509 shares during the last quarter. Finally, Aster Capital Management DIFC Ltd raised its position in Elastic by 206.1% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company's stock worth $42,000 after acquiring an additional 371 shares during the last quarter. Hedge funds and other institutional investors own 97.03% of the company's stock.

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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