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

Key Points

• Elastic was downgraded by Wall Street Zen from buy to hold, adding to a wave of mixed analyst views on the stock.
• Recent analyst updates have generally cut price targets, though the broader consensus remains Moderate Buy with an average price target of $80.04.
• Elastic reported better-than-expected quarterly results, with EPS of $0.61 and revenue of $450.68 million, up 16% year over year.

Elastic (NYSE:ESTC - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

ESTC has been the subject of several other reports. TD Cowen lowered their price objective on shares of Elastic from $65.00 to $60.00 and set a "hold" rating for the company in a report on Tuesday, May 26th. Jefferies Financial Group lowered their price objective on shares of Elastic from $95.00 to $75.00 and set a "buy" rating for the company in a report on Friday, May 29th. JPMorgan Chase & Co. lowered their price objective on shares of Elastic from $99.00 to $80.00 and set an "overweight" rating for the company in a report on Wednesday, May 27th. Oppenheimer decreased their target price on shares of Elastic from $85.00 to $75.00 and set an "outperform" rating for the company in a research note on Friday, May 29th. Finally, Royal Bank Of Canada decreased their target price on shares of Elastic from $80.00 to $70.00 and set an "outperform" rating for the company in a research note on Thursday, April 16th. Eighteen research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $80.04.

Elastic Stock Performance

Shares of ESTC opened at $60.33 on Friday. 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 has a one year low of $42.05 and a one year high of $96.07. The company has a 50-day simple moving average of $52.80 and a two-hundred day simple moving average of $61.10. The firm has a market capitalization of $6.27 billion, a PE ratio of 17.24, a price-to-earnings-growth ratio of 19.91 and a beta of 1.00.

Elastic (NYSE:ESTC - Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The company reported $0.61 EPS for the quarter, topping the consensus estimate of $0.56 by $0.05. Elastic had a net margin of 21.14% and a negative return on equity of 1.82%. The business had revenue of $450.68 million during the quarter, compared to analyst estimates of $446.66 million. During the same period last year, the business posted $0.47 earnings per share. Elastic's quarterly revenue was up 16.0% compared to the same quarter last year. 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, analysts anticipate that Elastic will post 0.18 EPS for the current fiscal year.

Insider Activity at Elastic

In related news, insider Carolyn Herzog sold 9,485 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the insider owned 128,439 shares of the company's stock, valued at $7,784,687.79. This trade represents a 6.88% decrease in their ownership of the stock. The sale was disclosed in a legal filing 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 Ken Exner sold 18,449 shares of the firm's stock in a transaction that occurred 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 sale, the insider directly owned 360,037 shares of the company's stock, valued at $21,821,842.57. This trade represents a 4.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 valued at $6,673,100 over the last ninety days. Corporate insiders own 12.70% of the company's stock.

Institutional Investors Weigh In On Elastic

Several institutional investors and hedge funds have recently made changes to their positions in ESTC. Sound Income Strategies LLC bought a new stake in shares of Elastic during the fourth quarter valued at approximately $25,000. Bessemer Group Inc. bought a new stake in shares of Elastic during the first quarter valued at approximately $25,000. Geneos Wealth Management Inc. bought a new stake in shares of Elastic during the second quarter valued at approximately $31,000. Activest Wealth Management boosted its holdings in Elastic by 3,181.3% in the fourth quarter. Activest Wealth Management now owns 525 shares of the company's stock worth $40,000 after purchasing an additional 509 shares during the last quarter. Finally, Aster Capital Management DIFC Ltd boosted its holdings in Elastic by 206.1% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company's stock worth $42,000 after purchasing an additional 371 shares during the last quarter. 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.

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