Traders Purchase Large Volume of Elastic Call Options (NYSE:ESTC)

Elastic N.V. (NYSE:ESTC) saw some unusual options trading activity on Wednesday. Stock traders purchased 4,130 call options on the company. This represents an increase of approximately 106% compared to the typical daily volume of 2,006 call options.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on ESTC. Cantor Fitzgerald cut their price target on Elastic from $94.00 to $85.00 and set a “neutral” rating on the stock in a research note on Friday, November 21st. Wells Fargo & Company reduced their price target on shares of Elastic from $90.00 to $75.00 and set an “equal weight” rating for the company in a research report on Friday, November 21st. Citigroup lowered their price objective on shares of Elastic from $130.00 to $115.00 and set a “buy” rating on the stock in a research note on Monday, November 24th. Wall Street Zen upgraded Elastic from a “hold” rating to a “buy” rating in a research note on Saturday, October 11th. Finally, Truist Financial dropped their price objective on shares of Elastic from $140.00 to $120.00 and set a “buy” rating for the company in a report on Wednesday, November 19th. Seventeen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $105.71.

Elastic Price Performance

Shares of ESTC opened at $69.50 on Thursday. The company has a 50 day moving average price of $76.03 and a 200-day moving average price of $81.82. The stock has a market capitalization of $7.32 billion, a PE ratio of -67.47, a PEG ratio of 283.00 and a beta of 0.92. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.97 and a current ratio of 1.97. Elastic has a fifty-two week low of $67.96 and a fifty-two week high of $118.84.

Elastic (NYSE:ESTC) last posted its quarterly earnings data on Thursday, November 20th. The company reported $0.64 earnings per share for the quarter, topping analysts’ consensus estimates of $0.58 by $0.06. The firm had revenue of $423.48 million during the quarter, compared to analysts’ expectations of $418.27 million. Elastic had a negative return on equity of 2.02% and a negative net margin of 6.79%.The business’s quarterly revenue was up 15.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.59 EPS. Elastic has set its Q3 2026 guidance at 0.630-0.65 EPS. Equities analysts predict that Elastic will post -0.77 earnings per share for the current fiscal year.

Elastic announced that its Board of Directors has approved a share repurchase program on Thursday, October 9th that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at Elastic

In other Elastic news, insider Ken Exner sold 6,544 shares of the company’s stock in a transaction dated Tuesday, December 9th. The stock was sold at an average price of $75.05, for a total value of $491,127.20. Following the transaction, the insider directly owned 227,038 shares in the company, valued at $17,039,201.90. This represents a 2.80% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Ashutosh Kulkarni sold 20,413 shares of the business’s stock in a transaction on Tuesday, December 9th. The stock was sold at an average price of $75.05, for a total transaction of $1,531,995.65. Following the completion of the sale, the chief executive officer directly owned 431,901 shares of the company’s stock, valued at $32,414,170.05. This represents a 4.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 61,828 shares of company stock valued at $4,641,010 over the last 90 days. Insiders own 12.70% of the company’s stock.

Institutional Investors Weigh In On Elastic

Hedge funds and other institutional investors have recently made changes to their positions in the company. Orion Porfolio Solutions LLC lifted its holdings in shares of Elastic by 1.4% in the 3rd quarter. Orion Porfolio Solutions LLC now owns 8,593 shares of the company’s stock valued at $726,000 after buying an additional 118 shares during the period. Northwestern Mutual Wealth Management Co. grew its holdings in Elastic by 17.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,159 shares of the company’s stock valued at $98,000 after buying an additional 171 shares during the last quarter. Public Employees Retirement System of Ohio increased its position in Elastic by 0.6% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 28,323 shares of the company’s stock worth $2,393,000 after purchasing an additional 175 shares in the last quarter. Janney Montgomery Scott LLC lifted its stake in shares of Elastic by 5.1% during the 2nd quarter. Janney Montgomery Scott LLC now owns 3,997 shares of the company’s stock worth $337,000 after purchasing an additional 194 shares during the period. Finally, Jones Financial Companies Lllp grew its holdings in Elastic by 6.9% in the 3rd quarter. Jones Financial Companies Lllp now owns 3,020 shares of the company’s stock valued at $260,000 after buying an additional 194 shares during the period. Institutional investors and hedge funds 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.