Canaccord Genuity Group Has Lowered Expectations for Elastic (NYSE:ESTC) Stock Price

Elastic (NYSE:ESTC) had its price objective cut by analysts at Canaccord Genuity Group from $115.00 to $90.00 in a research note issued on Friday,Benzinga reports. The firm currently has a “buy” rating on the stock. Canaccord Genuity Group’s price target points to a potential upside of 72.95% from the company’s previous close.

Other equities analysts also recently issued reports about the company. TD Cowen restated a “hold” rating on shares of Elastic in a research note on Monday, February 23rd. Rosenblatt Securities cut their price target on Elastic from $130.00 to $110.00 and set a “buy” rating on the stock in a report on Friday, January 30th. Scotiabank reduced their price objective on Elastic from $90.00 to $76.00 and set a “sector perform” rating for the company in a research report on Friday, November 21st. Monness Crespi & Hardt lowered Elastic from a “buy” rating to a “neutral” rating in a research report on Friday, November 21st. Finally, Barclays cut their target price on Elastic from $78.00 to $76.00 and set an “overweight” rating on the stock in a research note on Friday. Seventeen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Elastic has a consensus rating of “Moderate Buy” and a consensus price target of $96.17.

Elastic Stock Performance

Elastic stock opened at $52.04 on Friday. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.97 and a quick ratio of 1.97. Elastic has a 12 month low of $49.90 and a 12 month high of $117.49. The company has a fifty day moving average price of $68.42 and a two-hundred day moving average price of $77.85. The company has a market cap of $5.48 billion, a PE ratio of -65.05, a P/E/G ratio of 211.81 and a beta of 0.93.

Elastic (NYSE:ESTC) last posted its quarterly earnings results on Thursday, February 26th. The company reported $0.73 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.64 by $0.09. Elastic had a negative net margin of 5.04% and a negative return on equity of 2.25%. The company had revenue of $449.88 million for the quarter, compared to the consensus estimate of $438.37 million. During the same period last year, the firm posted $0.63 EPS. The company’s revenue for the quarter was up 17.7% on a year-over-year basis. Elastic has set its FY 2026 guidance at 2.500-2.540 EPS and its Q4 2026 guidance at 0.550-0.570 EPS. Research analysts expect that Elastic will post -0.77 earnings per share for the current year.

Insider Activity at Elastic

In other news, insider Carolyn Herzog sold 5,353 shares of Elastic stock in a transaction on Tuesday, December 9th. The stock was sold at an average price of $75.05, for a total transaction of $401,742.65. Following the completion of the sale, the insider owned 89,324 shares of the company’s stock, valued at approximately $6,703,766.20. This trade represents a 5.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Ken Exner sold 6,544 shares of the stock in a transaction that occurred on Tuesday, December 9th. The stock was sold at an average price of $75.05, for a total value of $491,127.20. Following the sale, the insider directly owned 227,038 shares in the company, valued at $17,039,201.90. This represents a 2.80% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 61,828 shares of company stock worth $4,641,010 over the last ninety days. Company insiders own 12.70% of the company’s stock.

Institutional Investors Weigh In On Elastic

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Pacer Advisors Inc. increased its stake in shares of Elastic by 80.9% in the fourth quarter. Pacer Advisors Inc. now owns 10,539 shares of the company’s stock valued at $795,000 after buying an additional 4,714 shares during the period. Kera Capital Partners Inc. lifted its stake in shares of Elastic by 129.8% in the 4th quarter. Kera Capital Partners Inc. now owns 10,482 shares of the company’s stock valued at $791,000 after purchasing an additional 5,920 shares during the period. Invesco Ltd. lifted its stake in Elastic by 17.6% in the fourth quarter. Invesco Ltd. now owns 128,844 shares of the company’s stock valued at $9,720,000 after buying an additional 19,304 shares during the period. Corient Private Wealth LLC boosted its stake in Elastic by 805.7% during the fourth quarter. Corient Private Wealth LLC now owns 36,420 shares of the company’s stock worth $2,748,000 after acquiring an additional 32,399 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV grew its stake in shares of Elastic by 153.1% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 79,926 shares of the company’s stock valued at $6,030,000 after buying an additional 48,344 shares during the period. 97.03% of the stock is owned by institutional investors.

Key Stories Impacting Elastic

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

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.