Elastic (NYSE:ESTC) Hits New 1-Year Low – Here’s What Happened

Shares of Elastic N.V. (NYSE:ESTC) reached a new 52-week low on Wednesday . The stock traded as low as $67.96 and last traded at $68.44, with a volume of 371125 shares traded. The stock had previously closed at $69.57.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the company. Rosenblatt Securities reissued a “buy” rating and issued a $130.00 price target on shares of Elastic in a research note on Wednesday, November 19th. Monness Crespi & Hardt downgraded shares of Elastic from a “buy” rating to a “neutral” rating in a research report on Friday, November 21st. Scotiabank reduced their price target on shares of Elastic from $90.00 to $76.00 and set a “sector perform” rating for the company in a report on Friday, November 21st. Wells Fargo & Company dropped their price objective on shares of Elastic from $90.00 to $75.00 and set an “equal weight” rating on the stock in a report on Friday, November 21st. Finally, DA Davidson cut their price objective on shares of Elastic from $100.00 to $80.00 and set a “neutral” rating on the stock in a research report on Friday, November 21st. Seventeen equities research 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. According to data from MarketBeat, Elastic has a consensus rating of “Moderate Buy” and an average target price of $105.71.

Elastic Stock 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 fifty day moving average price is $76.49 and its 200 day moving average price is $81.91. The company has a market cap of $7.32 billion, a PE ratio of -67.47, a P/E/G ratio of 290.36 and a beta of 0.92.

Elastic (NYSE:ESTC) last released its quarterly earnings results on Thursday, November 20th. The company reported $0.64 earnings per share for the quarter, topping the consensus estimate of $0.58 by $0.06. The business had revenue of $423.48 million for the quarter, compared to analysts’ expectations of $418.27 million. Elastic had a negative net margin of 6.79% and a negative return on equity of 2.02%. The firm’s revenue for the quarter was up 15.9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.59 earnings per share. Elastic has set its Q3 2026 guidance at 0.630-0.65 EPS. On average, equities research analysts predict that Elastic N.V. will post -0.77 earnings per share for the current year.

Elastic declared that its Board of Directors has authorized a share repurchase program on Thursday, October 9th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the company to reacquire shares of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.

Insider Activity at Elastic

In other Elastic news, CTO Shay Banon sold 4,552 shares of the company’s stock in a transaction on Tuesday, December 9th. The stock was sold at an average price of $75.05, for a total value of $341,627.60. Following the completion of the transaction, the chief technology officer owned 4,359,228 shares in the company, valued at $327,160,061.40. This represents a 0.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Ashutosh Kulkarni sold 5,000 shares of the firm’s stock in a transaction on Monday, December 15th. The shares were sold at an average price of $74.60, for a total value of $373,000.00. Following the sale, the chief executive officer directly owned 426,901 shares of the company’s stock, valued at approximately $31,846,814.60. This represents a 1.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 61,828 shares of company stock valued at $4,641,010 in the last ninety days. Insiders own 12.70% of the company’s stock.

Hedge Funds Weigh In On Elastic

Several institutional investors have recently added to or reduced their stakes in ESTC. Sound Income Strategies LLC purchased a new stake in shares of Elastic during the 4th quarter worth approximately $25,000. Geneos Wealth Management Inc. bought a new position in Elastic during the second quarter valued at $31,000. Huntington National Bank increased its position in Elastic by 97.5% in the second quarter. Huntington National Bank now owns 468 shares of the company’s stock worth $39,000 after buying an additional 231 shares during the last quarter. Plato Investment Management Ltd bought a new stake in shares of Elastic in the second quarter valued at $40,000. Finally, Promus Capital LLC purchased a new position in shares of Elastic during the 2nd quarter valued at $45,000. Institutional investors own 97.03% of the company’s stock.

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.