Elastic N.V. (NYSE:ESTC) Short Interest Down 39.0% in August

Key Points

• Elastic’s short interest fell 39% to 3.87 million shares as of August 31, representing about 4.2% of shares outstanding and 1.1 days of average trading volume.
• The company exceeded quarterly expectations, reporting $0.70 in adjusted EPS versus the $0.58 consensus estimate and $478.1 million in revenue, up 15.2% year over year.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $96.52, while several firms raised targets as high as $120.

Elastic N.V. (NYSE:ESTC - Get Free Report) saw a significant decrease in short interest during the month of August. As of August 31st, there was short interest totaling 3,868,490 shares, a decrease of 39.0% from the August 15th total of 6,338,244 shares. Approximately 4.2% of the shares of the stock are short sold. Based on an average daily volume of 3,656,632 shares, the short-interest ratio is presently 1.1 days.

Insider Buying and Selling

In other Elastic news, insider Carolyn Herzog sold 10,000 shares of the business's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $93.67, for a total value of $936,700.00. Following the completion of the transaction, the insider owned 118,439 shares of the company's stock, valued at $11,094,181.13. The trade was a 7.79% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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 transaction of $2,565,546.06. Following the completion of the transaction, the chief executive officer directly owned 599,525 shares in the company, valued at $52,626,304.50. The trade was a 4.65% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 1,075,641 shares of company stock worth $98,430,566. Insiders own 12.70% of the company's stock.

Institutional Trading of Elastic

A number of institutional investors have recently made changes to their positions in the stock. Bessemer Group Inc. bought a new stake in Elastic during the 1st quarter valued at $25,000. Basecamp Wealth Advisors LLC bought a new stake in Elastic in the 1st quarter worth $28,000. Harbor Investment Advisory LLC purchased a new position in shares of Elastic in the second quarter valued at about $42,000. Root Financial Partners LLC increased its position in shares of Elastic by 2,976.7% in the first quarter. Root Financial Partners LLC now owns 923 shares of the company's stock valued at $46,000 after acquiring an additional 893 shares during the period. Finally, Nomura Asset Management Co. Ltd. raised its stake in shares of Elastic by 111.1% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 950 shares of the company's stock valued at $72,000 after acquiring an additional 500 shares during the last quarter. Hedge funds and other institutional investors own 97.03% of the company's stock.

Elastic Trading Up 0.9%

Shares of NYSE:ESTC traded up $0.74 on Wednesday, reaching $85.91. 658,152 shares of the company traded hands, compared to its average volume of 2,166,111. The stock has a market capitalization of $9.02 billion, a P/E ratio of 24.06, a price-to-earnings-growth ratio of 7.15 and a beta of 1.03. The business's 50-day simple moving average is $75.83 and its 200 day simple moving average is $61.52. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 0.44. Elastic has a 52 week low of $42.05 and a 52 week high of $108.00.

Elastic (NYSE:ESTC - Get Free Report) last released its earnings results on Thursday, August 27th. The company reported $0.70 earnings per share for the quarter, beating analysts' consensus estimates of $0.58 by $0.12. Elastic had a negative return on equity of 0.35% and a net margin of 20.84%.The company had revenue of $478.11 million during the quarter, compared to analyst estimates of $469.75 million. During the same quarter in the previous year, the company posted $0.60 EPS. Elastic's revenue for the quarter was up 15.2% on a year-over-year basis. Elastic has set its FY 2027 guidance at 3.290-3.370 EPS and its Q2 2027 guidance at 0.800-0.820 EPS. As a group, equities analysts anticipate that Elastic will post 0.65 EPS for the current fiscal year.

Analyst Ratings Changes

A number of research analysts recently commented on ESTC shares. Barclays increased their target price on Elastic from $68.00 to $94.00 and gave the company an "overweight" rating in a research note on Monday, August 24th. Wells Fargo & Company lifted their price target on Elastic from $60.00 to $80.00 and gave the stock an "equal weight" rating in a research note on Tuesday, August 25th. Wolfe Research set a $55.00 price objective on Elastic in a research report on Friday, May 29th. Oppenheimer increased their price objective on Elastic from $100.00 to $118.00 and gave the company an "outperform" rating in a research report on Friday, August 28th. Finally, Canaccord Genuity Group boosted their target price on Elastic from $80.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday, August 28th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and thirteen have assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $96.52.

Elastic Company Profile

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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