Key Points
- Elastic CEO Ashutosh Kulkarni sold 40,373 shares on June 9 at an average price of $60.61, totaling about $2.45 million. The company said the sale was made to cover tax withholding tied to vesting equity awards.
- After the transaction, Kulkarni still held 628,752 shares valued at roughly $38.1 million, representing a 6.03% reduction in his stake. The disclosure was filed with the SEC.
- Elastic recently beat quarterly expectations, reporting $0.61 EPS on revenue of $450.68 million, while analysts have a Moderate Buy consensus with an average price target of $80.04. Several firms, however, have trimmed their targets, reflecting some caution around the stock.
Elastic N.V. (NYSE:ESTC - Get Free Report) CAO Jane Bone sold 1,104 shares of the firm's stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total value of $66,913.44. Following the transaction, the chief accounting officer owned 53,415 shares of the company's stock, valued at approximately $3,237,483.15. The trade was a 2.02% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.
Elastic Trading Down 0.9%
Shares of Elastic stock opened at $60.70 on Thursday. The firm has a market cap of $6.28 billion, a price-to-earnings ratio of 17.34, a PEG ratio of 20.25 and a beta of 1.00. The business has a 50-day moving average price of $52.39 and a 200-day moving average price of $61.17. The company has a quick ratio of 1.82, a current ratio of 1.68 and a debt-to-equity ratio of 0.45. Elastic N.V. has a twelve month low of $42.05 and a twelve month high of $96.07.
Elastic (NYSE:ESTC - Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The company reported $0.61 earnings per share for the quarter, beating analysts' consensus estimates of $0.56 by $0.05. The firm had revenue of $450.68 million during the quarter, compared to analyst estimates of $446.66 million. Elastic had a negative return on equity of 1.82% and a net margin of 21.14%.The business's quarterly revenue was up 16.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.47 earnings per share. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. Equities research analysts anticipate that Elastic N.V. will post 0.18 EPS for the current fiscal year.
Analyst Upgrades and Downgrades
A number of research analysts have recently weighed in on the company. Scotiabank cut their price objective on Elastic from $61.00 to $58.00 and set a "sector perform" rating for the company in a research report on Friday, May 29th. TD Cowen dropped their price target on Elastic from $65.00 to $60.00 and set a "hold" rating for the company in a research report on Tuesday, May 26th. Rothschild & Co Redburn initiated coverage on Elastic in a research report on Thursday, April 23rd. They issued a "neutral" rating and a $49.00 price target for the company. Weiss Ratings upgraded Elastic from a "sell (e+)" rating to a "sell (d+)" rating in a research report on Tuesday. Finally, JPMorgan Chase & Co. dropped their price target on Elastic from $99.00 to $80.00 and set an "overweight" rating for the company in a research report on Wednesday, May 27th. Eighteen analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $80.04.
Get Our Latest Report on Elastic
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in Elastic by 7.4% in the third quarter. Vanguard Group Inc. now owns 10,206,204 shares of the company's stock worth $862,322,000 after acquiring an additional 705,991 shares in the last quarter. AQR Capital Management LLC grew its stake in shares of Elastic by 153.4% during the fourth quarter. AQR Capital Management LLC now owns 7,545,081 shares of the company's stock valued at $569,201,000 after buying an additional 4,567,720 shares during the last quarter. Pictet Asset Management Holding SA grew its stake in shares of Elastic by 43.2% during the first quarter. Pictet Asset Management Holding SA now owns 6,492,717 shares of the company's stock valued at $324,550,000 after buying an additional 1,958,219 shares during the last quarter. FIL Ltd grew its stake in shares of Elastic by 36.9% during the fourth quarter. FIL Ltd now owns 3,628,748 shares of the company's stock valued at $273,753,000 after buying an additional 977,578 shares during the last quarter. Finally, First Trust Advisors LP grew its stake in shares of Elastic by 516.1% during the first quarter. First Trust Advisors LP now owns 2,627,636 shares of the company's stock valued at $131,356,000 after buying an additional 2,201,140 shares during the last quarter. Hedge funds and other institutional investors own 97.03% of the company's stock.
Key Stories Impacting Elastic
Here are the key news stories impacting Elastic this week:
- Positive Sentiment: Elastic presented at Rosenblatt’s 6th Annual Age of AI Technology Summit, keeping the company’s AI-related product story and growth narrative in focus for investors. Elastic N.V. Presents at Rosenblatt 6th Annual Age of AI Technology Summit Transcript
- Neutral Sentiment: Elastic disclosed that several top executives, including the CEO, CFO, CTO, CAO and CRO, sold shares on June 9. The company said the sales were tied to tax withholding from equity vesting, but the size of the transactions may still weigh on sentiment. Elastic (NYSE:ESTC) CEO Ashutosh Kulkarni Sells 40,373 Shares
- Neutral Sentiment: Elastic also highlighted a new risk around regulatory hurdles and budget pressures in government contracting, which could make revenue from public-sector customers less predictable if spending slows or procurement becomes more complicated. Regulatory Hurdles and Budget Pressures: Government Contract Risks Cloud Elastic N.V.’s Revenue Outlook
- Negative Sentiment: The heaviest drag on ESTC today is likely the cluster of insider sales, which can be read as a cautious signal by investors despite management saying the trades were routine tax-related transactions.
Elastic Company Profile
(
Get Free Report)
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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