Shay Banon, Chief Technology Officer and Director of Elastic N.V. (NYSE:ESTC) sold the company’s shares worth $32.54 million in the last week. A corporate insider’s share sale usually signals caution about the company’s future potential. Having said that, an insider could be selling shares for other reasons, such as financial or personal obligations.
Elastic N.V. is an American-Dutch company that provides search and analytics services. The company’s artificial intelligence or AI-powered search solutions enable organizations, customers, and employees to search more easily and accurately while also protecting from cyber-attacks.
A Closer Look at the Insider’s Transactions
As per Form 4 filed with the SEC on June 25, Banon undertook multiple sales of 300,000 ESTC shares on June 21 and June 24, at weighted average prices ranging between $107.5 and $110.23 apiece. It is worth noting that even after the latest Informative Sell transactions, Shay Banon still owns 7.3 million Elastic shares worth roughly $795.43 million.
Meanwhile, even the CEO Ashutosh Kulkarni sold shares worth $1.06 million on June 24. Following the share sale, Kulkarni owns ESTC shares worth $49.28 million.
Elastic N.V. stock currently has a Very Negative Insider Confidence Signal on TipRanks, based on Informative Sell transactions worth $127.6 million undertaken in the last three months.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is ESTC a Good Stock to Buy?
On TipRanks, ESTC shares have a Moderate Buy consensus rating based on 14 Buys and six Hold ratings. The average Elastic N.V. price target of $130.44 implies 18.5% upside potential from current levels. In the past year, ESTC shares have gained 72.9%.
