Elastic N.V. (NYSE: ESTC) stock jumped 8.40% on Friday to $55.12 against a previous-day closing price of $50.85. With 1.25 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.53 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $55.16 whereas the lowest price it dropped to was $51.03. The 52-week range on ESTC shows that it touched its highest point at $98.75 and its lowest point at $46.18 during that stretch. It currently has a 1-year price target of $73.19. Beta for the stock currently stands at 1.05.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ESTC was up-trending over the past week, with a rise of 7.47%, but this was up by 4.75% over a month. Three-month performance dropped to -11.00% while six-month performance fell -31.85%. The stock lost -38.23% in the past year, while it has gained 7.03% so far this year. A look at the trailing 12-month EPS for ESTC yields -2.54 with Next year EPS estimates of 0.88. For the next quarter, that number is 0.05. This implies an EPS growth rate of -48.40% for this year and 8900.00% for next year. EPS is expected to grow by 23.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -24.10%.
Float and Shares Shorts:
At present, 95.31 million ESTC shares are outstanding with a float of 78.04 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.84 million, which was 4.04% higher than short shares on Sep 14, 2022. In addition to Mr. Ashutosh Kulkarni as the firm’s CEO & Director, Mr. Steven Schuurman CBDO serves as its Co-Founder & Independent Non-Exec. Director.
Through their ownership of 81.18% of ESTC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 39.44% of ESTC, in contrast to 37.57% held by mutual funds. Shares owned by individuals account for 37.18%. As the largest shareholder in ESTC with 7.60% of the stake, The Vanguard Group, Inc. holds 7,264,134 shares worth 7,264,134. A second-largest stockholder of ESTC, Baillie Gifford & Co., holds 4,847,733 shares, controlling over 5.07% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in ESTC, holding 4,822,054 shares or 5.04% stake. With a 2.66% stake in ESTC, the Fidelity Funds SICAV – Global Tec is the largest stakeholder. A total of 2,545,817 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.42% of ESTC stock, is the second-largest Mutual Fund holder. It holds 2,310,512 shares valued at 118.99 million. Vanguard International Growth Fun holds 2.10% of the stake in ESTC, owning 2,006,627 shares worth 103.34 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ESTC since 22 analysts follow the stock currently. There are 13 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ESTC analysts setting a high price target of $100.00 and a low target of $50.00, the average target price over the next 12 months is $72.53. Based on these targets, ESTC could surge 81.42% to reach the target high and fall by -9.29% to reach the target low. Reaching the average price target will result in a growth of 31.59% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ESTC will report FY 2023 earnings on 06/01/2023. Analysts have provided yearly estimates in a range of $0.09 being high and -$0.29 being low. For ESTC, this leads to a yearly average estimate of -$0.01. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Elastic N.V. surprised analysts by $0.10 when it reported $0.00 EPS against a consensus estimate of -$0.10. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is $0.08 and the low estimate is -$0.03. The average estimate for the next quarter is thus $0.05.
Summary of Insider Activity:
Insiders traded ESTC stock several times over the past three months with 7 Buys and 8 Sells. In these transactions, 472,724 shares were bought while 18,599 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 27 over the past year. The total number of shares bought during that period was 759,245 while 62,717 shares were sold.