Today ESTC had a lockup expiration by non-insiders. Much was speculated on how this event would affect the stock. As of now it’s UP 4.4% on the occurrence. Guess it’s relative under performance as of late was baking in the dip. Now we wait for the next unlock 3 days after the next earnings. I have an overweight position ahead of today, but will continue to add on any dips. I think by June this stock will be higher.
I saw at least 2 different articles from March 6th about the lockup being back then, one mentioned it was due to being accelerated from a normal 180-day period.
I think there was some asymmetrical information, and perhaps the entire lockup drop occurred during March.
I actually just made a post over on the NPI board that has a bit more on lockups. Don’t worry, it has no politics in it, but caution/warning, it does mention a different matter that is OT over here (just options, so nothing too scary).
There are a few other recent lockup expirations also mentioned in that post/thread.
Also, Elastic did get a new outperform rating yesterday, as another very small reason it is up today.
u should not assume on the day the lockup ends that all insiders have the shares available to them at the brokerage in which they can sell them.
I’m sure not all situations are the same, but I can tell you it recently took about 2 weeks for me to get my shares 6 months after an IPO, transferred to a transfer co (they were not transferred until the lockup period ended) and then transferred into my brokerage acct to actually be able to sell them.