Elastic (NYSE:ESTC) Hits New 12-Month Low – Here’s Why

Elastic N.V. (NYSE:ESTC) shares hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $58.74 and last traded at $59.9870, with a volume of 2977012 shares traded. The stock had previously closed at $65.48.

Analyst Ratings Changes

A number of research analysts have weighed in on ESTC shares. Barclays cut their price objective on shares of Elastic from $107.00 to $100.00 and set an “overweight” rating on the stock in a research report on Monday, January 12th. Rosenblatt Securities cut their price target on shares of Elastic from $130.00 to $110.00 and set a “buy” rating on the stock in a report on Friday, January 30th. Morgan Stanley reduced their price objective on shares of Elastic from $120.00 to $110.00 and set an “overweight” rating on the stock in a research report on Friday, November 21st. Stifel Nicolaus dropped their target price on Elastic from $134.00 to $108.00 and set a “buy” rating for the company in a research report on Friday, November 21st. Finally, Royal Bank Of Canada cut their target price on Elastic from $115.00 to $95.00 and set an “outperform” rating on the stock in a research note on Monday, January 5th. Seventeen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Elastic has a consensus rating of “Moderate Buy” and an average price target of $104.88.

Elastic Stock Performance

The company has a current ratio of 1.97, a quick ratio of 1.97 and a debt-to-equity ratio of 0.64. The company has a market capitalization of $6.22 billion, a PE ratio of -57.32, a PEG ratio of 232.52 and a beta of 0.93. The firm’s 50-day simple moving average is $73.10 and its 200-day simple moving average is $80.28.

Elastic (NYSE:ESTC) last posted its quarterly earnings results on Thursday, November 20th. The company reported $0.64 earnings per share for the quarter, beating the consensus estimate of $0.58 by $0.06. Elastic had a negative net margin of 6.79% and a negative return on equity of 2.02%. The firm had revenue of $423.48 million during the quarter, compared to the consensus estimate of $418.27 million. During the same quarter in the previous year, the firm posted $0.59 earnings per share. The company’s revenue was up 15.9% on a year-over-year basis. Elastic has set its Q3 2026 guidance at 0.630-0.65 EPS. On average, research analysts predict that Elastic N.V. will post -0.77 earnings per share for the current year.

Elastic declared that its Board of Directors has initiated a stock buyback plan on Thursday, October 9th that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the company to purchase shares of its stock through open market purchases. Shares buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Insider Activity at Elastic

In other Elastic news, CFO Navam Welihinda sold 1,046 shares of the stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $74.51, for a total transaction of $77,937.46. Following the sale, the chief financial officer owned 123,874 shares of the company’s stock, valued at approximately $9,229,851.74. This trade represents a 0.84% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CTO Shay Banon sold 4,552 shares of Elastic stock in a transaction on Tuesday, December 9th. The shares were sold at an average price of $75.05, for a total value of $341,627.60. Following the completion of the transaction, the chief technology officer owned 4,359,228 shares in the company, valued at $327,160,061.40. This represents a 0.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 61,828 shares of company stock valued at $4,641,010 over the last 90 days. Insiders own 12.70% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. AXQ Capital LP acquired a new position in Elastic during the 2nd quarter valued at approximately $419,000. Mackenzie Financial Corp grew its holdings in shares of Elastic by 622.2% during the second quarter. Mackenzie Financial Corp now owns 77,005 shares of the company’s stock valued at $6,494,000 after buying an additional 66,342 shares during the last quarter. Geode Capital Management LLC increased its position in shares of Elastic by 3.6% in the 2nd quarter. Geode Capital Management LLC now owns 1,569,578 shares of the company’s stock valued at $132,384,000 after acquiring an additional 54,812 shares during the period. Panagora Asset Management Inc. raised its stake in Elastic by 102.3% in the 2nd quarter. Panagora Asset Management Inc. now owns 464,268 shares of the company’s stock worth $39,152,000 after acquiring an additional 234,735 shares during the last quarter. Finally, Y Intercept Hong Kong Ltd lifted its position in Elastic by 147.0% during the 2nd quarter. Y Intercept Hong Kong Ltd now owns 57,690 shares of the company’s stock worth $4,865,000 after acquiring an additional 34,336 shares during the period. 97.03% of the stock is owned by institutional investors and hedge funds.

Elastic Company Profile

Elastic N.V. operates as a search and analytics company, offering a suite of open source and subscription-based solutions for search, observability and security use cases. Its flagship product, Elasticsearch, enables fast and scalable full-text search and analytics across large volumes of structured and unstructured data. Complementary tools such as Kibana provide visualization capabilities, while Beats and Logstash serve as lightweight data shippers and data processing pipelines, respectively.

The company was founded in 2012 by Shay Banon, who serves as chief technology officer, and Steven Schuurman.