Elastic (NYSE:ESTC) Lowered to “Hold” Rating by Wall Street Zen

Elastic (NYSE:ESTC) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report issued on Saturday.

Several other research analysts have also recently weighed in on the stock. Truist Financial dropped their price target on shares of Elastic from $105.00 to $80.00 and set a “buy” rating on the stock in a research note on Friday, February 27th. UBS Group reiterated a “buy” rating and set a $85.00 price target on shares of Elastic in a research note on Friday, May 29th. Wolfe Research set a $55.00 price target on shares of Elastic in a research note on Friday, May 29th. William Blair initiated coverage on shares of Elastic in a research note on Friday, May 22nd. They set an “outperform” rating on the stock. Finally, Wells Fargo & Company dropped their price target on shares of Elastic from $75.00 to $60.00 and set an “equal weight” rating on the stock in a research note on Friday, February 27th. Eighteen analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $80.04.

Elastic Trading Up 0.2%

Shares of Elastic stock opened at $60.33 on Friday. The company’s fifty day simple moving average is $52.80 and its 200-day simple moving average is $61.10. The stock has a market capitalization of $6.27 billion, a PE ratio of 17.24, a P/E/G ratio of 19.91 and a beta of 1.00. Elastic has a 1-year low of $42.05 and a 1-year high of $96.07. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.68 and a quick ratio of 1.82.

Elastic (NYSE:ESTC) last issued its quarterly earnings results on Thursday, May 28th. The company reported $0.61 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.05. The business 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 company’s revenue was up 16.0% compared to the same quarter last year. During the same quarter last year, the company posted $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. As a group, equities analysts anticipate that Elastic will post 0.18 earnings per share for the current year.

Insider Activity at Elastic

In related news, insider Ken Exner sold 18,449 shares of Elastic stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total transaction of $1,118,193.89. Following the transaction, the insider owned 360,037 shares in the company, valued at approximately $21,821,842.57. The trade was a 4.87% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 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 Elastic stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total transaction of $574,885.85. Following the transaction, the insider owned 128,439 shares in the company, valued at approximately $7,784,687.79. This trade represents a 6.88% decrease in their position. 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 have sold 110,099 shares of company stock worth $6,673,100 in the last 90 days. Company insiders own 12.70% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of ESTC. J. Safra Sarasin Holding AG increased its holdings in Elastic by 43.0% in the 4th quarter. J. Safra Sarasin Holding AG now owns 189,138 shares of the company’s stock valued at $14,269,000 after acquiring an additional 56,892 shares during the last quarter. Cinctive Capital Management LP bought a new stake in Elastic in the 3rd quarter valued at $13,608,000. Thematics Asset Management increased its holdings in Elastic by 10.2% in the 3rd quarter. Thematics Asset Management now owns 523,283 shares of the company’s stock valued at $44,212,000 after acquiring an additional 48,346 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. increased its holdings in Elastic by 50.8% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 891,279 shares of the company’s stock valued at $75,304,000 after acquiring an additional 300,264 shares during the last quarter. Finally, Citigroup Inc. increased its holdings in Elastic by 89.0% in the 3rd quarter. Citigroup Inc. now owns 89,357 shares of the company’s stock valued at $7,550,000 after acquiring an additional 42,087 shares during the last quarter. Hedge funds and other institutional investors own 97.03% of the company’s stock.

Elastic Company Profile

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.