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Ken Exner, the Chief Product Officer of Elastic N.V. (NYSE:ESTC), recently sold 3,623 ordinary shares of the company. The shares were sold at a price of $90.78 each, amounting to a total transaction value of $328,895. Following this sale, Exner holds 163,271 shares in the company. The transaction comes as Elastic, currently valued at $10.3 billion, has seen its stock surge 33% over the past six months despite a recent 10% pullback last week. According to InvestingPro analysis, the stock is currently trading near its Fair Value.
The transaction was not a discretionary trade by Exner but was carried out to satisfy tax obligations related to the vesting of restricted stock units (RSUs) and performance-based RSUs. This sale was mandated by Elastic’s equity incentive plan, which requires tax withholding obligations to be funded through a "sell to cover" transaction. The company maintains strong financial health with a current ratio of 2.02, indicating ample liquidity to meet its short-term obligations. For deeper insights into Elastic’s financial health and 10+ additional exclusive ProTips, visit InvestingPro.
In other recent news, Elastic NV has reported third-quarter fiscal year 2025 results that exceeded expectations, leading to several analyst firms adjusting their price targets. UBS increased its price target for Elastic to $148 from $140, citing strong Cloud revenue growth and improved execution. Truist Securities also raised its price target to $145, maintaining a Buy rating due to the company’s robust performance and strategic improvements. Meanwhile, TD Cowen lifted its target to $125 following Elastic’s strong enterprise consumption and cloud revenue surpassing predictions.
DA Davidson maintained a Neutral rating with a $115 target, acknowledging the company’s strong quarterly performance and operational efficiency. Stifel, on the other hand, adjusted its price target to $38, retaining a Buy rating while noting the company’s revenue beat and improved go-to-market execution. Elastic’s management has revised its fiscal year revenue guidance upwards, reflecting confidence in ongoing business momentum.
The appointment of Navam Welihinda as the new Chief Financial Officer is another significant development for Elastic. Analysts have noted that the company’s focus on generative AI and search capabilities has contributed to its recent success. Despite some cautious notes regarding future growth, the consistent upgrades and positive outlooks from analysts underscore Elastic’s strong financial health and strategic positioning.
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