Elastic (NYSE:ESTC) Trading Down 8.3% – Should You Sell?

Elastic N.V. (NYSE:ESTC)’s stock price fell 8.3% during trading on Thursday . The stock traded as low as $54.10 and last traded at $53.8390. 232,199 shares traded hands during trading, a decline of 89% from the average session volume of 2,075,375 shares. The stock had previously closed at $58.71.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on ESTC. Wall Street Zen cut Elastic from a “buy” rating to a “hold” rating in a report on Saturday, June 13th. Stifel Nicolaus set a $65.00 target price on shares of Elastic in a research report on Friday, May 29th. Wolfe Research set a $55.00 target price on shares of Elastic in a research note on Friday, May 29th. Oppenheimer lowered their price target on shares of Elastic from $85.00 to $75.00 and set an “outperform” rating for the company in a report on Friday, May 29th. Finally, Truist Financial dropped their price target on shares of Elastic from $105.00 to $80.00 and set a “buy” rating on the stock in a research note on Friday, February 27th. Eighteen research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Elastic has an average rating of “Moderate Buy” and a consensus target price of $80.04.

Elastic Stock Down 8.6%

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 firm has a market capitalization of $5.58 billion, a P/E ratio of 15.33, a P/E/G ratio of 15.16 and a beta of 1.00. The stock has a fifty day moving average price of $54.62 and a two-hundred day moving average price of $60.36.

Elastic (NYSE:ESTC) last announced its quarterly earnings data 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 firm had revenue of $450.68 million for the quarter, compared to analysts’ expectations of $446.66 million. Elastic had a negative return on equity of 1.82% and a net margin of 21.14%.The firm’s revenue for the quarter was up 16.0% on a year-over-year basis. During the same period last year, the business posted $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. Research analysts forecast that Elastic N.V. will post 0.23 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Ashutosh Kulkarni sold 40,373 shares of the business’s stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total transaction of $2,447,007.53. Following the completion of the sale, 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Mark Eugene Dodds sold 18,439 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 $1,117,587.79. Following the sale, the executive owned 298,211 shares in the company, valued at approximately $18,074,568.71. This trade represents a 5.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 110,099 shares of company stock worth $6,673,100. Corporate insiders own 12.70% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Sound Income Strategies LLC acquired a new position in shares of Elastic during the fourth quarter valued at $25,000. Bessemer Group Inc. acquired a new position in Elastic during the 1st quarter valued at about $25,000. Basecamp Wealth Advisors LLC bought a new position in Elastic in the 1st quarter worth about $28,000. Geneos Wealth Management Inc. bought a new position in Elastic in the 2nd quarter worth about $31,000. Finally, Activest Wealth Management increased its stake in shares of Elastic by 3,181.2% in 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 period. 97.03% of the stock is currently owned by institutional investors.

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.