Elastic (NYSE:ESTC) Trading Down 5.1% – Here’s What Happened

Elastic N.V. (NYSE:ESTC) dropped 5.1% on Tuesday . The company traded as low as $59.74 and last traded at $59.57. Approximately 818,627 shares were traded during mid-day trading, a decline of 60% from the average session volume of 2,048,643 shares. The stock had previously closed at $62.74.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on ESTC shares. Canaccord Genuity Group cut their price target on Elastic from $90.00 to $80.00 and set a “buy” rating for the company in a research note on Friday, May 29th. TD Cowen dropped their price objective on Elastic from $65.00 to $60.00 and set a “hold” rating for the company in a report on Tuesday, May 26th. Guggenheim cut their target price on Elastic from $116.00 to $106.00 and set a “buy” rating for the company in a research report on Tuesday, May 19th. Cantor Fitzgerald reissued a “neutral” rating and set a $59.00 target price on shares of Elastic in a report on Thursday, June 25th. Finally, Stifel Nicolaus set a $65.00 price target on Elastic in a research report on Friday, May 29th. Seventeen analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $78.78.

Elastic Stock Down 2.5%

The firm has a 50 day simple moving average of $59.08 and a two-hundred day simple moving average of $58.00. The company has a quick ratio of 1.68, a current ratio of 1.68 and a debt-to-equity ratio of 0.45. The stock has a market capitalization of $6.10 billion, a P/E ratio of 16.77, a PEG ratio of 15.67 and a beta of 1.00.

Elastic (NYSE:ESTC) last issued its earnings results on Thursday, May 28th. The company reported $0.61 earnings per share for the quarter, beating analysts’ consensus estimates of $0.56 by $0.05. Elastic had a negative return on equity of 1.82% and a net margin of 21.14%.The firm had revenue of $450.68 million for the quarter, compared to the consensus estimate of $446.66 million. During the same quarter last year, the business posted $0.47 EPS. The company’s 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. On average, equities research analysts expect that Elastic N.V. will post 0.23 earnings per share for the current year.

Insider Transactions at Elastic

In other Elastic news, insider Carolyn Herzog sold 9,485 shares of the business’s stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total transaction of $574,885.85. Following the completion of the transaction, the insider owned 128,439 shares of the company’s stock, valued at approximately $7,784,687.79. The trade was a 6.88% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total transaction of $2,447,007.53. Following the completion of the transaction, the chief executive officer directly owned 628,752 shares of the company’s stock, valued at $38,108,658.72. This trade 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. Over the last 90 days, insiders have sold 110,099 shares of company stock valued at $6,673,100. Company insiders own 12.70% of the company’s stock.

Hedge Funds Weigh In On Elastic

Several institutional investors and hedge funds have recently added to or reduced their stakes in ESTC. Focus Partners Wealth bought a new stake in shares of Elastic during the first quarter worth $494,000. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Elastic by 17.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,159 shares of the company’s stock valued at $98,000 after acquiring an additional 171 shares during the last quarter. Invesco Ltd. boosted its holdings in shares of Elastic by 11.7% during the 2nd quarter. Invesco Ltd. now owns 95,332 shares of the company’s stock valued at $8,039,000 after acquiring an additional 9,990 shares in the last quarter. EverSource Wealth Advisors LLC boosted its holdings in shares of Elastic by 400.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,110 shares of the company’s stock valued at $178,000 after acquiring an additional 1,688 shares in the last quarter. Finally, Cerity Partners LLC grew its position in Elastic by 24.7% during the 2nd quarter. Cerity Partners LLC now owns 30,545 shares of the company’s stock worth $2,576,000 after acquiring an additional 6,056 shares during the last quarter. Institutional investors own 97.03% of the company’s stock.

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.