Is Elastic N.V. (ESTC) positioned for future growth?

Elastic N.V. (NYSE: ESTC) stock fell -0.26% on Monday to $78.09 against a previous-day closing price of $78.29. With 0.67 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.17 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $78.45 whereas the lowest price it dropped to was $76.82. The 52-week range on ESTC shows that it touched its highest point at $83.73 and its lowest point at $46.18 during that stretch. It currently has a 1-year price target of $79.28. Beta for the stock currently stands at 0.96.

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 down-trending over the past week, with a drop of -2.00%, but this was up by 29.57% over a month. Three-month performance surged to 17.62% while six-month performance rose 42.24%. The stock lost -7.18% in the past year, while it has gained 51.63% so far this year. A look at the trailing 12-month EPS for ESTC yields -2.23 with Next year EPS estimates of 1.45. For the next quarter, that number is 0.24. This implies an EPS growth rate of -12.00% for this year and 36.02% for next year.

Float and Shares Shorts:

At present, 97.94 million ESTC shares are outstanding with a float of 80.57 million shares on hand for trading. On Aug 30, 2023, short shares totaled 2.06 million, which was 2.09% higher than short shares on Jul 30, 2023. In addition to Mr. Ashutosh Kulkarni as the firm’s CEO & Exec. Director, Mr. Steven Schuurman CBDO serves as its Co-Founder & Independent Non-Exec. Director.

Institutional Ownership:

Through their ownership of 78.69% of ESTC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 39.59% of ESTC, in contrast to 38.37% held by mutual funds. Shares owned by individuals account for 35.99%. As the largest shareholder in ESTC with 8.21% of the stake, The Vanguard Group, Inc. holds 8,076,962 shares worth 8,076,962. A second-largest stockholder of ESTC, Baillie Gifford & Co., holds 7,582,321 shares, controlling over 7.70% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in ESTC, holding 7,324,097 shares or 7.44% stake. With a 4.97% stake in ESTC, the Vanguard International Growth Fun is the largest stakeholder. A total of 4,896,014 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.42% of ESTC stock, is the second-largest Mutual Fund holder. It holds 2,381,961 shares valued at 147.4 million. Fidelity Funds SICAV – Global Tec holds 2.33% of the stake in ESTC, owning 2,294,929 shares worth 142.01 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ESTC since 0 analysts follow the stock currently. 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 $112.00 and a low target of $60.00, the average target price over the next 12 months is $81.01. Based on these targets, ESTC could surge 43.42% to reach the target high and fall by -23.17% to reach the target low. Reaching the average price target will result in a growth of 3.74% 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.

Summary of Insider Activity:

Insiders traded ESTC stock several times over the past three months with 4 Buys and 7 Sells. In these transactions, 101,766 shares were bought while 3,450,772 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 29 over the past year. The total number of shares bought during that period was 590,252 while 3,800,950 shares were sold.