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

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

Analyst Ratings Changes

A number of analysts have recently commented on the stock. Morgan Stanley cut their price objective on shares of Elastic from $120.00 to $110.00 and set an “overweight” rating on the stock in a research report on Friday, November 21st. Piper Sandler lowered their price target on shares of Elastic from $125.00 to $110.00 and set an “overweight” rating on the stock in a research note on Friday, November 21st. Jefferies Financial Group cut their price target on shares of Elastic from $105.00 to $95.00 and set a “buy” rating on the stock in a research report on Monday, January 5th. Bank of America decreased their price objective on Elastic from $111.00 to $90.00 and set a “neutral” rating for the company in a report on Friday, November 21st. Finally, JPMorgan Chase & Co. lowered their target price on Elastic from $120.00 to $113.00 and set an “overweight” rating on the stock in a research report on Friday, November 21st. Seventeen investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $105.71.

Insider Buying and Selling

In other news, CTO Shay Banon sold 4,552 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 transaction of $341,627.60. Following the completion of the transaction, the chief technology officer directly owned 4,359,228 shares of the company’s stock, valued at $327,160,061.40. This represents a 0.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Navam Welihinda sold 1,046 shares of the stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $74.51, for a total value of $77,937.46. Following the transaction, the chief financial officer owned 123,874 shares of the company’s stock, valued at approximately $9,229,851.74. The trade was a 0.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 61,828 shares of company stock valued at $4,641,010. Corporate insiders own 12.70% of the company’s stock.

Hedge Funds Weigh In On Elastic

Large investors have recently modified their holdings of the stock. AQR Capital Management LLC lifted its stake in shares of Elastic by 62.5% during the 3rd quarter. AQR Capital Management LLC now owns 2,977,361 shares of the company’s stock worth $251,557,000 after buying an additional 1,145,146 shares during the last quarter. Alyeska Investment Group L.P. raised its holdings in Elastic by 490.4% in the 3rd quarter. Alyeska Investment Group L.P. now owns 1,113,503 shares of the company’s stock valued at $94,080,000 after acquiring an additional 924,911 shares during the period. Vanguard Group Inc. lifted its position in Elastic by 7.4% during 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 during the last quarter. Qube Research & Technologies Ltd lifted its position in Elastic by 302.1% during the second quarter. Qube Research & Technologies Ltd now owns 932,630 shares of the company’s stock worth $78,649,000 after acquiring an additional 700,697 shares during the last quarter. Finally, BNP Paribas Financial Markets boosted its holdings in shares of Elastic by 305.9% during the second quarter. BNP Paribas Financial Markets now owns 832,353 shares of the company’s stock worth $70,192,000 after acquiring an additional 627,284 shares during the period. 97.03% of the stock is owned by institutional investors.

Elastic Stock Performance

Elastic stock traded up $0.35 during midday trading on Wednesday, reaching $69.92. 136,260 shares of the company’s stock were exchanged, compared to its average volume of 1,286,904. The stock’s 50-day simple moving average is $76.49 and its 200 day simple moving average is $81.91. The firm has a market cap of $7.37 billion, a price-to-earnings ratio of -67.87, a P/E/G ratio of 290.36 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 52 week low of $68.10 and a 52 week high of $118.84.

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

Elastic announced that its Board of Directors has initiated a stock repurchase plan on Thursday, October 9th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to buy shares of its stock through open market purchases. Shares buyback plans are generally a sign that the company’s board of directors believes its stock is undervalued.

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.