Elastic (NYSE:ESTC) Shares Down 5.5% – What’s Next?

Elastic N.V. (NYSE:ESTC) traded down 5.5% on Friday . The company traded as low as $42.20 and last traded at $42.5160. 382,005 shares traded hands during trading, a decline of 82% from the average session volume of 2,070,511 shares. The stock had previously closed at $45.00.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the company. JPMorgan Chase & Co. decreased their price objective on Elastic from $113.00 to $98.00 and set an “overweight” rating for the company in a research note on Friday, February 20th. DA Davidson decreased their price objective on Elastic from $80.00 to $65.00 and set a “neutral” rating for the company in a research note on Monday, March 2nd. Guggenheim restated a “buy” rating and set a $116.00 price objective on shares of Elastic in a research note on Wednesday, February 18th. Weiss Ratings restated a “sell (d)” rating on shares of Elastic in a research note on Wednesday, January 21st. Finally, Morgan Stanley decreased their price objective on Elastic from $80.00 to $73.00 and set an “overweight” rating for the company in a research note on Monday, March 2nd. Seventeen analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $95.25.

Elastic Trading Down 3.9%

The company’s fifty day moving average is $54.67 and its two-hundred day moving average is $70.93. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.82 and a current ratio of 1.82. The company has a market cap of $4.47 billion, a price-to-earnings ratio of -54.04, a P/E/G ratio of 55.63 and a beta of 1.03.

Elastic (NYSE:ESTC) last issued its quarterly earnings results on Thursday, February 26th. The company reported $0.73 earnings per share for the quarter, topping the consensus estimate of $0.64 by $0.09. Elastic had a negative net margin of 5.04% and a negative return on equity of 2.34%. The company had revenue of $449.88 million for the quarter, compared to the consensus estimate of $438.37 million. During the same quarter in the prior year, the company earned $0.63 EPS. Elastic’s quarterly revenue 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. On average, research analysts anticipate that Elastic N.V. will post -0.77 EPS for the current year.

Insider Buying and Selling

In related news, CTO Shay Banon sold 4,283 shares of the stock in a transaction that occurred on Monday, March 9th. The shares were 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 in the company, valued at approximately $227,676,524.60. This represents a 0.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Ashutosh Kulkarni sold 17,756 shares of the 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 $928,283.68. Following the completion of the transaction, the chief executive officer owned 409,145 shares in the company, valued at approximately $21,390,100.60. This trade represents a 4.16% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 38,188 shares of company stock worth $1,996,469 in the last quarter. 12.70% of the stock is currently owned by corporate insiders.

Institutional Trading of Elastic

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Sound Income Strategies LLC acquired a new stake in Elastic during the fourth quarter worth about $25,000. Geneos Wealth Management Inc. acquired a new stake in Elastic during the second quarter worth about $31,000. Activest Wealth Management grew its holdings in Elastic by 3,181.3% during the fourth quarter. Activest Wealth Management now owns 525 shares of the company’s stock worth $40,000 after acquiring an additional 509 shares during the period. Promus Capital LLC acquired a new stake in Elastic during the second quarter worth about $45,000. Finally, Aster Capital Management DIFC Ltd grew its holdings in Elastic by 206.1% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company’s stock worth $42,000 after acquiring an additional 371 shares during the period. 97.03% of the stock is owned by institutional investors and hedge funds.

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.