Zacks Research Downgrades Elastic (NYSE:ESTC) to Strong Sell

Elastic (NYSE:ESTC) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Thursday,Zacks.com reports.

Other equities analysts also recently issued reports about the company. Royal Bank Of Canada decreased their target price on Elastic from $80.00 to $70.00 and set an “outperform” rating for the company in a research note on Thursday, April 16th. Truist Financial decreased their target price on Elastic from $105.00 to $80.00 and set a “buy” rating for the company in a research note on Friday, February 27th. UBS Group restated a “buy” rating and issued a $85.00 target price on shares of Elastic in a research note on Friday. Canaccord Genuity Group decreased their target price on Elastic from $90.00 to $80.00 and set a “buy” rating for the company in a research note on Friday. Finally, Wells Fargo & Company decreased their target price on Elastic from $75.00 to $60.00 and set an “equal weight” rating for the company in a research note on Friday, February 27th. Eighteen research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $80.04.

Elastic Stock Performance

Shares of ESTC stock opened at $64.82 on Thursday. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.72. The business has a 50 day moving average of $50.38 and a two-hundred day moving average of $62.83. Elastic has a 52 week low of $42.05 and a 52 week high of $96.07. The company has a market cap of $6.71 billion, a P/E ratio of 18.52, a PEG ratio of 109.01 and a beta of 0.88.

Elastic (NYSE:ESTC) last issued its earnings results on Thursday, May 28th. The company reported $0.61 EPS for the quarter, beating analysts’ consensus estimates of $0.56 by $0.05. Elastic had a negative return on equity of 2.02% and a net margin of 21.14%.The company had revenue of $450.68 million during the quarter, compared to the consensus estimate of $446.66 million. During the same period in the previous year, the firm posted $0.47 earnings per share. Elastic’s quarterly revenue was up 16.0% compared to the same quarter last year. 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 will post 0.02 EPS for the current year.

Insider Buying and Selling at Elastic

In other news, insider Ken Exner sold 4,310 shares of the business’s stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $52.28, for a total transaction of $225,326.80. Following the completion of the transaction, the insider directly owned 222,728 shares in the company, valued at approximately $11,644,219.84. The trade was a 1.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CTO Shay Banon sold 4,283 shares of the business’s stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $52.28, for a total value of $223,915.24. Following the transaction, the chief technology officer owned 4,354,945 shares of the company’s stock, valued at approximately $227,676,524.60. This represents a 0.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 38,188 shares of company stock valued at $1,996,469. 12.70% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Elastic

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Orion Porfolio Solutions LLC raised its holdings in Elastic by 1.4% during the third quarter. Orion Porfolio Solutions LLC now owns 8,593 shares of the company’s stock worth $726,000 after purchasing an additional 118 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings in Elastic by 17.3% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,159 shares of the company’s stock worth $98,000 after purchasing an additional 171 shares in the last quarter. Public Employees Retirement System of Ohio raised its holdings in Elastic by 0.6% during the third quarter. Public Employees Retirement System of Ohio now owns 28,323 shares of the company’s stock worth $2,393,000 after purchasing an additional 175 shares in the last quarter. Jones Financial Companies Lllp raised its holdings in Elastic by 6.9% during the third quarter. Jones Financial Companies Lllp now owns 3,020 shares of the company’s stock worth $260,000 after purchasing an additional 194 shares in the last quarter. Finally, California State Teachers Retirement System raised its holdings in Elastic by 0.3% during the second quarter. California State Teachers Retirement System now owns 83,403 shares of the company’s stock worth $7,033,000 after purchasing an additional 219 shares in the last quarter. 97.03% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Elastic

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Elastic beat fiscal Q4 expectations, reporting EPS of $0.61 versus $0.56 expected and revenue of $450.7 million versus $446.7 million expected, with revenue up 16% year over year. Elastic Reports Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: The company also issued first-quarter and full-year guidance above consensus for EPS, suggesting management sees continued earnings momentum. Elastic Reports Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: Wall Street remains broadly constructive: Citigroup raised its price target to $104, and other firms like Jefferies, Canaccord, Oppenheimer, and Barclays still have buy/outperform-style ratings even after trimming targets. Analyst target updates
• Neutral Sentiment: Several analysts cut price targets after the report, including Barclays, Jefferies, Canaccord Genuity, Wedbush, and Oppenheimer, which signals some valuation caution rather than a thesis change. Analyst target updates
• Neutral Sentiment: Some investors may also be focusing on management’s fiscal 2027 outlook implying mid-teens revenue growth, which is still healthy but may look slower than the market hoped for after a strong quarter. Elastic shares fall 3.2% as investors digest Q4 results and fiscal 2027 outlook
• Negative Sentiment: Despite the beat, the stock has been volatile because investors were disappointed by the initial post-earnings reaction and are weighing strong growth against the company’s still-negative margins. Elastic N.V. (ESTC) Stock Falls on Q4 2026 Earnings

About Elastic

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.