Elastic (NYSE:ESTC) Trading Down 4.4% - Time to Sell?

Key Points

• Elastic shares fell 4.4% to about $79.58 in Tuesday trading, with volume roughly 53% below the stock’s average daily volume.
• Analysts remain generally positive: 17 rate Elastic a Buy and 13 rate it a Hold, producing a “Moderate Buy” consensus and an average price target of $86.67.
• The company exceeded quarterly expectations with $0.61 in adjusted EPS and $450.68 million in revenue, up 16% year over year; insiders sold shares primarily to cover tax obligations related to equity awards.

Shares of Elastic N.V. (NYSE:ESTC - Get Free Report) dropped 4.4% during trading on Tuesday . The company traded as low as $80.02 and last traded at $79.5810. 978,700 shares changed hands during mid-day trading, a decline of 53% from the average daily volume of 2,061,871 shares. The stock had previously closed at $83.24.

Wall Street Analyst Weigh In

ESTC has been the topic of a number of research analyst reports. Truist Financial raised their target price on shares of Elastic from $80.00 to $100.00 and gave the company a "buy" rating in a research report on Thursday, August 20th. Oppenheimer increased their target price on Elastic from $75.00 to $100.00 and gave the company an "outperform" rating in a research report on Thursday, August 13th. Zacks Research raised Elastic from a "strong sell" rating to a "hold" rating in a research note on Friday, June 26th. Citigroup raised their price objective on shares of Elastic from $95.00 to $104.00 and gave the company a "buy" rating in a report on Friday, May 29th. Finally, Guggenheim restated a "buy" rating and issued a $106.00 price target on shares of Elastic in a research report on Wednesday, August 19th. Seventeen research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $86.67.

Elastic Stock Down 3.8%

The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.68 and a current ratio of 1.68. The firm's 50 day moving average price is $66.12 and its two-hundred day moving average price is $58.29. The company has a market cap of $8.32 billion, a P/E ratio of 22.85, a price-to-earnings-growth ratio of 21.54 and a beta of 0.98.

Elastic (NYSE:ESTC - Get Free Report) last issued its earnings results on Thursday, May 28th. The company reported $0.61 EPS for the quarter, beating analysts' consensus estimates of $0.56 by $0.05. Elastic had a negative return on equity of 1.82% and a net margin of 21.14%.The business had revenue of $450.68 million during the quarter, compared to analyst estimates of $446.66 million. During the same period in the previous year, the company posted $0.47 EPS. The firm's 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. Equities research analysts anticipate that Elastic N.V. will post 0.24 EPS for the current fiscal year.

Insider Transactions at Elastic

In other Elastic news, CTO Shay Banon sold 9,288 shares of the company's stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total value of $562,945.68. Following the completion of the sale, the chief technology officer directly owned 4,417,140 shares of the company's stock, valued at approximately $267,722,855.40. This represents a 0.21% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through 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 that occurred 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 directly owned 128,439 shares of the company's stock, valued at approximately $7,784,687.79. This represents a 6.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 110,099 shares of company stock valued at $6,673,100. Corporate insiders own 12.70% of the company's stock.

Institutional Trading of Elastic

Large investors have recently added to or reduced their stakes in the stock. Bessemer Group Inc. bought a new stake in shares of Elastic in the 1st quarter worth approximately $25,000. Basecamp Wealth Advisors LLC purchased a new position in Elastic during the 1st quarter valued at about $28,000. Geneos Wealth Management Inc. bought a new stake in Elastic during the 2nd quarter worth approximately $31,000. Activest Wealth Management increased its holdings in shares of Elastic by 3,181.2% 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 period. Finally, Harbor Investment Advisory LLC purchased a new stake in shares of Elastic in the 2nd quarter valued at about $42,000. 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.

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