Elastic (NYSE:ESTC) Shares Gap Down After Analyst Downgrade

Elastic N.V. (NYSE:ESTC)’s share price gapped down prior to trading on Friday after Canaccord Genuity Group lowered their price target on the stock from $115.00 to $90.00. The stock had previously closed at $61.58, but opened at $55.10. Canaccord Genuity Group currently has a buy rating on the stock. Elastic shares last traded at $53.0120, with a volume of 2,988,695 shares changing hands.

Other equities analysts have also issued research reports about the company. Monness Crespi & Hardt lowered Elastic from a “buy” rating to a “neutral” rating in a research note on Friday, November 21st. UBS Group cut their target price on shares of Elastic from $125.00 to $110.00 and set a “buy” rating on the stock in a research report on Friday, November 21st. Wells Fargo & Company reduced their target price on shares of Elastic from $75.00 to $60.00 and set an “equal weight” rating on the stock in a research note on Friday. Cantor Fitzgerald dropped their price target on shares of Elastic from $94.00 to $85.00 and set a “neutral” rating for the company in a research note on Friday, November 21st. Finally, Royal Bank Of Canada cut their price objective on shares of Elastic from $115.00 to $95.00 and set an “outperform” rating on the stock in a report on Monday, January 5th. Seventeen analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Elastic currently has an average rating of “Moderate Buy” and an average price target of $96.17.

Insider Buying and Selling at Elastic

In other news, CRO Mark Eugene Dodds sold 5,800 shares of Elastic stock in a transaction on Friday, December 5th. The shares were sold at an average price of $74.60, for a total transaction of $432,680.00. Following the transaction, the executive directly owned 161,484 shares of the company’s stock, valued at $12,046,706.40. This trade represents a 3.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Ken Exner sold 6,544 shares of the business’s stock in a transaction on Tuesday, December 9th. The shares were sold at an average price of $75.05, for a total transaction of $491,127.20. Following the completion of the transaction, the insider directly owned 227,038 shares of the company’s stock, valued at $17,039,201.90. This trade represents a 2.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 61,828 shares of company stock worth $4,641,010 over the last ninety days. 12.70% of the stock is owned by corporate insiders.

Elastic News Summary

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Company beat revenue expectations and reported 18% year‑over‑year revenue growth; management emphasized AI expansion and subscription growth, which supports longer‑term demand assumptions. Elastic Reports Third Quarter Fiscal 2026 Financial Results
• Positive Sentiment: Management raised forward guidance sharply: FY26 and Q4 EPS guidance well above Street consensus and revenue guidance roughly in line — a sign the company expects stronger profitability going forward (this is a bullish catalyst if execution continues). Elastic Reports Third Quarter Fiscal 2026 Financial Results
• Neutral Sentiment: Detailed materials and call transcripts were published (earnings deck and conference call transcripts) — useful for investors who want to dig into non‑GAAP vs GAAP items, margin drivers, and AI product commentary. Q3 2026 Earnings Call Transcript
• Negative Sentiment: Market reaction focused on an apparent earnings/methodology gap: some reports showed adjusted profits above estimates while GAAP/other EPS metrics missed — this disconnect likely triggered selling despite the revenue beat. Elastic Q3 Results and Transcript (MarketBeat)
• Negative Sentiment: Multiple sell‑side firms cut price targets this morning (Canaccord, Wells Fargo, Truist, Piper Sandler, Oppenheimer, Barclays), reducing near‑term analyst support and dragging sentiment lower. The coordinated downgrades are a primary driver of the intraday selloff. Analyst price target updates (Benzinga)
• Negative Sentiment: News coverage highlights that shares fell sharply despite beating revenue estimates — suggesting investors are focused on margins, EPS presentation, and the quick profit‑taking after recent gains. Elastic shares tumble despite beating third quarter estimates

Institutional Investors Weigh In On Elastic

Several large investors have recently modified their holdings of ESTC. Sound Income Strategies LLC bought a new position in shares of Elastic during the 4th quarter valued at about $25,000. Geneos Wealth Management Inc. acquired a new stake in Elastic during the 2nd quarter worth approximately $31,000. Huntington National Bank raised its holdings in Elastic by 97.5% during the 2nd quarter. Huntington National Bank now owns 468 shares of the company’s stock worth $39,000 after buying an additional 231 shares during the period. Plato Investment Management Ltd bought a new position in Elastic in the second quarter valued at approximately $40,000. Finally, Activest Wealth Management boosted its holdings in shares of Elastic by 3,181.3% in the fourth quarter. Activest Wealth Management now owns 525 shares of the company’s stock valued at $40,000 after buying an additional 509 shares during the period. 97.03% of the stock is currently owned by institutional investors.

Elastic Price Performance

The company has a debt-to-equity ratio of 0.64, a current ratio of 1.97 and a quick ratio of 1.97. The company’s 50-day moving average price is $68.42 and its 200-day moving average price is $77.82. The company has a market cap of $5.48 billion, a P/E ratio of -65.05, a P/E/G ratio of 250.50 and a beta of 0.93.

Elastic (NYSE:ESTC) last announced its earnings results on Thursday, February 26th. The company reported $0.73 earnings per share for the quarter, topping analysts’ consensus estimates of $0.64 by $0.09. The firm had revenue of $449.88 million during the quarter, compared to analyst estimates of $438.37 million. Elastic had a negative net margin of 5.04% and a negative return on equity of 2.25%. The company’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same period in the prior year, the business earned $0.63 EPS. Elastic has set its FY 2026 guidance at 2.500-2.540 EPS and its Q4 2026 guidance at 0.550-0.570 EPS. As a group, sell-side analysts predict that Elastic N.V. will post -0.77 earnings per share for the current fiscal year.

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.