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.
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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%.
