Elastic (NYSE:ESTC) CEO Ashutosh Kulkarni Sells 40,373 Shares

Elastic N.V. (NYSE:ESTC) CEO Ashutosh Kulkarni sold 40,373 shares of the business’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 $2,447,007.53. Following the sale, the chief executive officer directly owned 628,752 shares of the company’s stock, valued at approximately $38,108,658.72. The trade was a 6.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Elastic Stock Performance

Shares of ESTC stock traded down $0.56 during mid-day trading on Wednesday, reaching $60.70. 1,241,304 shares of the company’s stock traded hands, compared to its average volume of 2,103,974. Elastic N.V. has a 12 month low of $42.05 and a 12 month high of $96.07. The firm has a 50 day moving average price of $52.16 and a two-hundred day moving average price of $61.33. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.82 and a current ratio of 1.82. The firm has a market capitalization of $6.28 billion, a PE ratio of 17.34, a price-to-earnings-growth ratio of 86.23 and a beta of 1.00.

Elastic (NYSE:ESTC) last issued its quarterly earnings data on Thursday, May 28th. The company reported $0.61 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.56 by $0.05. Elastic had a net margin of 21.14% and a negative return on equity of 2.02%. The firm had revenue of $450.68 million during the quarter, compared to the consensus estimate of $446.66 million. During the same quarter in the previous year, the firm posted $0.47 EPS. The company’s revenue for the quarter was up 16.0% compared to the same quarter last year. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. On average, research analysts forecast that Elastic N.V. will post 0.03 EPS for the current year.

Key Elastic News

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.

Institutional Trading of Elastic

Hedge funds have recently made changes to their positions in the business. Edgestream Partners L.P. purchased a new stake in Elastic in the 1st quarter worth about $444,000. Bull Harbor Capital LLC purchased a new stake in Elastic in the 1st quarter worth about $456,000. Smith Group Asset Management LLC raised its position in Elastic by 2.2% in the 1st 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 during the period. Amundi raised its position in Elastic by 37.2% in the 1st quarter. Amundi now owns 296,604 shares of the company’s stock worth $14,827,000 after purchasing an additional 80,441 shares during the period. Finally, California State Teachers Retirement System raised its position in Elastic by 21.8% in the 1st quarter. California State Teachers Retirement System now owns 104,579 shares of the company’s stock worth $5,228,000 after purchasing an additional 18,716 shares during the period. 97.03% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

ESTC has been the topic of a number of analyst reports. Oppenheimer lowered their target price on shares of Elastic from $85.00 to $75.00 and set an “outperform” rating on the stock in a research note on Friday, May 29th. The Goldman Sachs Group initiated coverage on shares of Elastic in a research note on Tuesday, April 21st. They set a “neutral” rating and a $50.00 target price on the stock. JPMorgan Chase & Co. lowered their target price on shares of Elastic from $99.00 to $80.00 and set an “overweight” rating on the stock in a research note on Wednesday, May 27th. Morgan Stanley lowered their target price 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. Finally, Rosenblatt Securities restated a “buy” rating and set a $110.00 target price on shares of Elastic in a research note on Tuesday, May 26th. Eighteen research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $80.04.

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.