Elastic (NYSE:ESTC) Shares Down 5.1% – What’s Next?

Elastic N.V. (NYSE:ESTC)’s stock price was down 5.1% on Tuesday . The company traded as low as $59.74 and last traded at $59.57. 818,627 shares were traded during trading, a decline of 60% from the average daily volume of 2,048,643 shares. The stock had previously closed at $62.74.

Analysts Set New Price Targets

Several brokerages recently commented on ESTC. Rothschild & Co Redburn started coverage on shares of Elastic in a research note on Thursday, April 23rd. They issued a “neutral” rating and a $49.00 price objective for the company. Royal Bank Of Canada lowered their target price on shares of Elastic from $80.00 to $70.00 and set an “outperform” rating on the stock in a research report on Thursday, April 16th. Citigroup increased their target price on shares of Elastic from $95.00 to $104.00 and gave the company a “buy” rating in a report on Friday, May 29th. DA Davidson reduced their price target on shares of Elastic from $65.00 to $60.00 and set a “neutral” rating for the company in a research report on Friday, May 29th. Finally, Barclays decreased their price target on Elastic from $76.00 to $68.00 and set an “overweight” rating on the stock in a research note on Friday, May 29th. Seventeen research analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $78.78.

Elastic Stock Down 4.9%

The stock has a market cap of $6.20 billion, a price-to-earnings ratio of 17.05, a P/E/G ratio of 15.83 and a beta of 1.00. The company has a current ratio of 1.68, a quick ratio of 1.68 and a debt-to-equity ratio of 0.45. The firm’s 50 day moving average is $58.68 and its two-hundred day moving average is $58.23.

Elastic (NYSE:ESTC) last released its quarterly earnings results on Thursday, May 28th. The company reported $0.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.05. The company had revenue of $450.68 million for the quarter, compared to analysts’ expectations of $446.66 million. Elastic had a net margin of 21.14% and a negative return on equity of 1.82%. The firm’s revenue for the quarter was up 16.0% compared to the same quarter last year. During the same period last year, the company earned $0.47 EPS. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. On average, sell-side analysts predict that Elastic N.V. will post 0.23 EPS for the current year.

Insider Transactions at Elastic

In other news, insider Ken Exner sold 18,449 shares of Elastic stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total value of $1,118,193.89. Following the completion of the sale, the insider owned 360,037 shares of the company’s stock, valued at $21,821,842.57. The trade was a 4.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Carolyn Herzog sold 9,485 shares of the company’s stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total value of $574,885.85. Following the completion of the transaction, the insider owned 128,439 shares of the company’s stock, valued at $7,784,687.79. The trade was a 6.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 110,099 shares of company stock worth $6,673,100 in the last three months. 12.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of ESTC. Orion Porfolio Solutions LLC lifted its holdings in Elastic by 1.4% in the 3rd quarter. Orion Porfolio Solutions LLC now owns 8,593 shares of the company’s stock valued at $726,000 after acquiring an additional 118 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Elastic by 17.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,159 shares of the company’s stock worth $98,000 after purchasing an additional 171 shares in the last quarter. Public Employees Retirement System of Ohio raised its holdings in shares of Elastic by 0.6% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 28,323 shares of the company’s stock worth $2,393,000 after purchasing an additional 175 shares in the last quarter. California State Teachers Retirement System lifted its stake in Elastic by 0.3% during the second quarter. California State Teachers Retirement System now owns 83,403 shares of the company’s stock valued at $7,033,000 after purchasing an additional 219 shares during the last quarter. Finally, 180 Wealth Advisors LLC lifted its stake in Elastic by 4.6% during the second quarter. 180 Wealth Advisors LLC now owns 6,027 shares of the company’s stock valued at $344,000 after purchasing an additional 263 shares during the last quarter. Institutional investors and hedge funds 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.