Truist Financial Has Lowered Expectations for Elastic (NYSE:ESTC) Stock Price

Elastic (NYSE:ESTC) had its price objective reduced by equities researchers at Truist Financial from $105.00 to $80.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. Truist Financial’s price objective suggests a potential upside of 53.73% from the company’s previous close.

A number of other equities analysts have also recently commented on ESTC. TD Cowen restated a “hold” rating on shares of Elastic in a report on Monday, February 23rd. Wedbush decreased their price target on Elastic from $110.00 to $90.00 and set an “outperform” rating for the company in a report on Friday, November 21st. Morgan Stanley set a $80.00 price target on shares of Elastic in a research note on Thursday, February 19th. Canaccord Genuity Group reduced their price objective on Elastic from $120.00 to $115.00 and set a “buy” rating for the company in a research note on Friday, November 21st. Finally, JPMorgan Chase & Co. dropped their price target on Elastic from $113.00 to $98.00 and set an “overweight” rating on the stock in a research report on Friday, February 20th. Seventeen equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $96.17.

Elastic Price Performance

Shares of NYSE ESTC opened at $52.04 on Friday. Elastic has a one year low of $49.90 and a one year high of $117.49. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.97 and a current ratio of 1.97. The firm has a fifty day moving average of $68.42 and a 200 day moving average of $77.85. The firm has a market cap of $5.48 billion, a PE ratio of -65.05, a PEG ratio of 211.81 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 (EPS) for the quarter, topping the consensus estimate of $0.64 by $0.09. The company had revenue of $449.88 million for the quarter, compared to analysts’ expectations of $438.37 million. Elastic had a negative net margin of 5.04% and a negative return on equity of 2.25%. The firm’s quarterly revenue was up 17.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $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, research analysts predict that Elastic will post -0.77 EPS for the current fiscal year.

Insider Activity

In related news, insider Carolyn Herzog sold 5,353 shares of the firm’s stock in a transaction dated Tuesday, December 9th. The stock was sold at an average price of $75.05, for a total transaction of $401,742.65. Following the sale, the insider directly owned 89,324 shares in the company, valued at approximately $6,703,766.20. This trade represents a 5.65% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Ashutosh Kulkarni sold 20,413 shares of the business’s stock in a transaction on Tuesday, December 9th. The stock was sold at an average price of $75.05, for a total transaction of $1,531,995.65. Following the completion of the transaction, the chief executive officer owned 431,901 shares in the company, valued at $32,414,170.05. This represents a 4.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 61,828 shares of company stock valued at $4,641,010 in the last ninety days. 12.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On Elastic

Several institutional investors and hedge funds have recently made changes to their positions in ESTC. Focus Partners Wealth acquired a new stake in Elastic in the first quarter worth $494,000. Asset Management One Co. Ltd. bought a new position in shares of Elastic in the second quarter valued at $191,000. Sumitomo Mitsui Trust Group Inc. lifted its holdings in shares of Elastic by 115.9% during the second quarter. Sumitomo Mitsui Trust Group Inc. now owns 5,030 shares of the company’s stock valued at $424,000 after purchasing an additional 2,700 shares during the last quarter. Envestnet Asset Management Inc. boosted its holdings in shares of Elastic by 1.5% in the second quarter. Envestnet Asset Management Inc. now owns 32,215 shares of the company’s stock worth $2,717,000 after buying an additional 472 shares during the period. Finally, Teacher Retirement System of Texas grew its position in Elastic by 11.3% during the 2nd quarter. Teacher Retirement System of Texas now owns 20,178 shares of the company’s stock worth $1,702,000 after purchasing an additional 2,048 shares in the last quarter. 97.03% of the stock is owned by institutional investors and hedge funds.

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

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.