Investors Buy Large Volume of Call Options on Elastic (NYSE:ESTC)

Elastic N.V. (NYSE:ESTC) was the recipient of some unusual options trading activity on Friday. Stock traders bought 4,771 call options on the company. This represents an increase of 101% compared to the average volume of 2,375 call options.

Wall Street Analysts Forecast Growth

ESTC has been the subject of a number of research reports. Piper Sandler reissued an “overweight” rating on shares of Elastic in a report on Friday, June 26th. Morgan Stanley lowered Elastic from an “overweight” rating to an “equal weight” rating and decreased their price objective for the company from $73.00 to $66.00 in a research report on Tuesday, July 21st. Scotiabank lowered their target price on Elastic from $61.00 to $58.00 and set a “sector perform” rating for the company in a research note on Friday, May 29th. Wedbush dropped their target price on Elastic from $74.00 to $65.00 and set an “outperform” rating for the company in a research report on Friday, May 29th. Finally, Cantor Fitzgerald reaffirmed a “neutral” rating and set a $59.00 price target on shares of Elastic in a research note on Thursday, June 25th. Seventeen equities research analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the stock. According to MarketBeat, Elastic has a consensus rating of “Moderate Buy” and an average price target of $80.33.

Insider Activity

In other news, CAO Jane E. Bone sold 1,104 shares of the firm’s stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total transaction of $66,913.44. Following the completion of the sale, the chief accounting officer owned 53,415 shares of the company’s stock, valued at approximately $3,237,483.15. This trade represents a 2.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Ken Exner sold 18,449 shares of Elastic stock in a transaction that occurred on Tuesday, June 9th. The shares were 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 of the company’s stock, valued at $21,821,842.57. This trade represents a 4.87% 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. In the last three months, insiders sold 110,099 shares of company stock valued at $6,673,100. Corporate insiders own 12.70% of the company’s stock.

Hedge Funds Weigh In On Elastic

Several hedge funds have recently added to or reduced their stakes in ESTC. Bessemer Group Inc. bought a new position in Elastic during the first quarter worth about $25,000. Basecamp Wealth Advisors LLC bought a new stake in shares of Elastic in the 1st quarter valued at about $28,000. Geneos Wealth Management Inc. bought a new stake in shares of Elastic in the 2nd quarter valued at about $31,000. Activest Wealth Management raised its position in shares of Elastic by 3,181.2% in the 4th quarter. Activest Wealth Management now owns 525 shares of the company’s stock valued at $40,000 after acquiring an additional 509 shares during the period. Finally, Harbor Investment Advisory LLC bought a new position in Elastic during the 2nd quarter worth approximately $42,000. Institutional investors and hedge funds own 97.03% of the company’s stock.

Elastic Trading Down 1.7%

NYSE ESTC traded down $1.47 during trading hours on Friday, hitting $84.56. The company’s stock had a trading volume of 878,243 shares, compared to its average volume of 2,034,594. Elastic has a twelve month low of $42.05 and a twelve month high of $96.07. The firm has a market capitalization of $8.79 billion, a P/E ratio of 24.14, a PEG ratio of 17.47 and a beta of 0.98. The company has a quick ratio of 1.68, a current ratio of 1.68 and a debt-to-equity ratio of 0.45. The stock has a fifty day moving average of $62.74 and a 200 day moving average of $57.48.

Elastic (NYSE:ESTC) last issued its earnings results on Thursday, May 28th. The company reported $0.61 EPS for the quarter, beating the consensus estimate of $0.56 by $0.05. The company had revenue of $450.68 million during the quarter, compared to analysts’ expectations of $446.66 million. Elastic had a net margin of 21.14% and a negative return on equity of 1.82%. The business’s revenue for the quarter was up 16.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $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. Equities research analysts forecast that Elastic will post 0.26 earnings per share for the current fiscal year.

Elastic Company Profile

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.