On July 3, 2023, Carolyn Herzog, Chief Legal Officer of Elastic NV (ESTC, Financial), sold 1320 shares of the company. This move is part of a broader trend of insider selling at Elastic NV, which we will explore in this article.
Who is Carolyn Herzog?
Carolyn Herzog serves as the Chief Legal Officer at Elastic NV. In her role, she oversees all legal matters, including corporate governance, intellectual property, litigation, and securities compliance. Herzog's recent sale of Elastic NV shares is noteworthy given her position within the company.
About Elastic NV
Elastic NV is a search company that powers enterprise search, observability, and security solutions built on one technology stack that can be deployed anywhere. From finding documents to monitoring infrastructure to hunting for threats, Elastic makes data usable in real-time and at scale.
Insider Sell Analysis
Over the past year, Carolyn Herzog has sold a total of 8151 shares and has not purchased any shares. This recent sale of 1320 shares is part of a larger trend at Elastic NV, where there have been 20 insider sells and no insider buys over the past year.
The above image shows the trend of insider selling at Elastic NV. The consistent selling could be a signal to investors about the company's future prospects. However, it's important to note that insider selling can occur for a variety of reasons, including personal financial planning, and does not necessarily indicate a negative outlook for the company.
Elastic NV's Valuation
On the day of Herzog’s recent sale, shares of Elastic NV were trading for $64.2 apiece, giving the stock a market cap of $6.1 billion.
Despite the insider selling, Elastic NV appears to be significantly undervalued based on its GuruFocus Value of $174.83, with a price-to-GF-Value ratio of 0.37. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance.
In conclusion, while the insider selling at Elastic NV is noteworthy, the company's valuation suggests that the stock may still be a good investment. As always, investors should conduct their own due diligence and consider multiple factors before making investment decisions.
