Elastic (NYSE:ESTC) Trading Down 4.4% – Here’s Why

Elastic N.V. (NYSE:ESTC) shares were down 4.4% during mid-day trading on Tuesday . The company traded as low as $80.02 and last traded at $79.5810. Approximately 978,700 shares changed hands during mid-day trading, a decline of 53% from the average session volume of 2,061,871 shares. The stock had previously closed at $83.24.

Analysts Set New Price Targets

Several research firms have recently commented on ESTC. Royal Bank Of Canada lifted their price objective on Elastic from $70.00 to $87.00 and gave the stock an “outperform” rating in a report on Friday, August 14th. Wells Fargo & Company boosted their price objective on shares of Elastic from $60.00 to $80.00 and gave the company an “equal weight” rating in a research report on Tuesday. Oppenheimer upped their price objective on shares of Elastic from $75.00 to $100.00 and gave the stock an “outperform” rating in a report on Thursday, August 13th. William Blair assumed coverage on shares of Elastic in a research report on Friday, May 22nd. They issued an “outperform” rating on the stock. Finally, Piper Sandler reaffirmed an “overweight” rating on shares of Elastic in a research note on Friday, June 26th. Seventeen equities research analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $86.67.

Elastic Stock Down 3.8%

The company has a market capitalization of $8.32 billion, a PE ratio of 22.85, a P/E/G ratio of 21.54 and a beta of 0.98. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.68 and a current ratio of 1.68. The company’s 50-day moving average is $66.12 and its 200 day moving average is $58.29.

Elastic (NYSE:ESTC) last issued its earnings results on Thursday, May 28th. The company reported $0.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.05. The business had revenue of $450.68 million during the quarter, compared to analysts’ expectations of $446.66 million. Elastic had a net margin of 21.14% and a negative return on equity of 1.82%. The business’s revenue for the quarter was up 16.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.47 earnings per share. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. As a group, analysts anticipate that Elastic N.V. will post 0.24 EPS for the current year.

Insiders Place Their Bets

In other Elastic news, insider Ken Exner sold 18,449 shares of Elastic stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total value of $1,118,193.89. Following the completion of the sale, the insider owned 360,037 shares of the company’s stock, valued at approximately $21,821,842.57. This trade represents a 4.87% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ashutosh Kulkarni sold 40,373 shares of the business’s stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total value of $2,447,007.53. Following the completion of the transaction, the chief executive officer owned 628,752 shares of the company’s stock, valued at $38,108,658.72. This represents a 6.03% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 110,099 shares of company stock worth $6,673,100 in the last three months. Corporate insiders own 12.70% of the company’s stock.

Hedge Funds Weigh In On Elastic

A number of hedge funds have recently bought and sold shares of ESTC. Bessemer Group Inc. bought a new position in Elastic during the 1st quarter valued at about $25,000. Basecamp Wealth Advisors LLC bought a new stake in shares of Elastic in the first quarter worth approximately $28,000. Geneos Wealth Management Inc. purchased a new position in shares of Elastic during the second quarter valued at approximately $31,000. Activest Wealth Management raised its holdings in shares of Elastic by 3,181.2% during the fourth quarter. Activest Wealth Management now owns 525 shares of the company’s stock valued at $40,000 after purchasing an additional 509 shares during the last quarter. Finally, Harbor Investment Advisory LLC bought a new position in Elastic during the second quarter valued at approximately $42,000. Hedge funds and other institutional investors own 97.03% of the company’s stock.

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.