Elastic (NYSE:ESTC) Trading Down 5.5% - Time to Sell?

Key Points

• Elastic's stock fell 5.5% to $42.52 on Friday with just 382,005 shares traded (about 82% below average), and is trading well below its 50‑day ($55.12) and 200‑day ($71.35) moving averages.
• Analysts are mixed—17 Buys, 11 Holds and 1 Sell—with a consensus rating of "Moderate Buy" and an average price target of $95.25, although several firms recently cut their targets (e.g., Rosenblatt, Citigroup, Piper Sandler).
• Elastic beat the quarter (EPS $0.73 vs. $0.64; revenue $449.9M vs. $438.4M, +17.7% YoY) but remains unprofitable (net margin -5.04%, negative ROE), and insiders including the CEO and CRO have sold shares recently.

Elastic N.V. (NYSE:ESTC - Get Free Report)'s stock price traded down 5.5% on Friday . The company traded as low as $42.20 and last traded at $42.5160. 382,005 shares were traded during trading, a decline of 82% from the average session volume of 2,070,511 shares. The stock had previously closed at $45.00.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the company. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Elastic in a research report on Wednesday, January 21st. Rosenblatt Securities lowered their target price on Elastic from $130.00 to $110.00 and set a "buy" rating on the stock in a research report on Friday, January 30th. TD Cowen reissued a "hold" rating on shares of Elastic in a research report on Monday, February 23rd. Citigroup lowered their price target on Elastic from $115.00 to $95.00 and set a "buy" rating for the company in a research report on Friday, February 20th. Finally, Piper Sandler lowered their price target on Elastic from $110.00 to $85.00 and set an "overweight" rating for the company in a research report on Friday, February 27th. Seventeen analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $95.25.

Elastic Price Performance

The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.82 and a current ratio of 1.82. The company has a market cap of $4.41 billion, a P/E ratio of -53.20, a P/E/G ratio of 62.60 and a beta of 1.03. The firm has a 50 day moving average price of $55.12 and a two-hundred day moving average price of $71.35.

Elastic (NYSE:ESTC - Get Free Report) last posted its quarterly earnings results on Thursday, February 26th. The company reported $0.73 earnings per share for the quarter, topping the consensus estimate of $0.64 by $0.09. The company had revenue of $449.88 million during the quarter, compared to the consensus estimate of $438.37 million. Elastic had a negative return on equity of 2.34% and a negative net margin of 5.04%.The firm's quarterly revenue was up 17.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $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. On average, analysts predict that Elastic N.V. will post -0.77 EPS for the current fiscal year.

Insider Activity at Elastic

In related news, CEO Ashutosh Kulkarni sold 17,756 shares of the firm's stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $52.28, for a total transaction of $928,283.68. Following the transaction, the chief executive officer directly owned 409,145 shares of the company's stock, valued at approximately $21,390,100.60. This trade represents a 4.16% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CRO Mark Eugene Dodds sold 3,723 shares of Elastic stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $52.28, for a total value of $194,638.44. Following the completion of the transaction, the executive directly owned 152,563 shares in the company, valued at $7,975,993.64. This trade represents a 2.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 38,188 shares of company stock valued at $1,996,469 in the last ninety days. Insiders own 12.70% of the company's stock.

Hedge Funds Weigh In On Elastic

A number of large investors have recently bought and sold shares of ESTC. Corient Private Wealth LLC boosted its position in shares of Elastic by 148.2% during the fourth quarter. Corient Private Wealth LLC now owns 9,979 shares of the company's stock valued at $753,000 after purchasing an additional 5,958 shares in the last quarter. Redwood Family Wealth LLC bought a new stake in shares of Elastic during the fourth quarter valued at approximately $248,000. Pacer Advisors Inc. boosted its position in shares of Elastic by 80.9% during the fourth quarter. Pacer Advisors Inc. now owns 10,539 shares of the company's stock valued at $795,000 after purchasing an additional 4,714 shares in the last quarter. Kera Capital Partners Inc. boosted its position in shares of Elastic by 129.8% during the fourth quarter. Kera Capital Partners Inc. now owns 10,482 shares of the company's stock valued at $791,000 after purchasing an additional 5,920 shares in the last quarter. Finally, Invesco Ltd. boosted its position in shares of Elastic by 17.6% during the fourth quarter. Invesco Ltd. now owns 128,844 shares of the company's stock valued at $9,720,000 after purchasing an additional 19,304 shares in the last quarter. 97.03% of the stock is owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.