Elastic (NYSE:ESTC) Shares Gap Down After Analyst Downgrade

Shares of Elastic N.V. (NYSE:ESTC) gapped down prior to trading on Friday after Oppenheimer lowered their price target on the stock from $100.00 to $85.00. The stock had previously closed at $61.58, but opened at $55.10. Oppenheimer currently has an outperform rating on the stock. Elastic shares last traded at $53.0120, with a volume of 2,988,695 shares traded.

Several other research firms have also weighed in on ESTC. Cantor Fitzgerald lowered their price objective on Elastic from $94.00 to $85.00 and set a “neutral” rating on the stock in a research note on Friday, November 21st. Jefferies Financial Group cut their price target on shares of Elastic from $105.00 to $95.00 and set a “buy” rating on the stock in a research report on Monday, January 5th. Canaccord Genuity Group cut their price objective on Elastic from $120.00 to $115.00 and set a “buy” rating on the stock in a report on Friday, November 21st. DA Davidson dropped their price target on Elastic from $100.00 to $80.00 and set a “neutral” rating on the stock in a research note on Friday, November 21st. Finally, Bank of America decreased their price objective on Elastic from $111.00 to $90.00 and set a “neutral” rating for the company in a report on Friday, November 21st. Seventeen research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $100.54.

Insider Buying and Selling at Elastic

In other Elastic news, CTO Shay Banon sold 4,552 shares of the company’s stock in a transaction on Tuesday, December 9th. The shares were sold at an average price of $75.05, for a total value of $341,627.60. Following the transaction, the chief technology officer directly owned 4,359,228 shares in the company, valued at $327,160,061.40. The trade was a 0.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Ken Exner sold 6,544 shares of the firm’s stock in a transaction dated Tuesday, December 9th. The stock was sold at an average price of $75.05, for a total transaction of $491,127.20. Following the sale, the insider owned 227,038 shares of the company’s stock, valued at approximately $17,039,201.90. This represents a 2.80% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 61,828 shares of company stock worth $4,641,010. 12.70% of the stock is currently owned by corporate insiders.

Elastic News Roundup

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Company beat on revenue and subscription growth — Q3 revenue was about $450M, up ~18% year-over-year, and subscription revenue rose ~19%, showing continued demand for its Search AI platform. BusinessWire: Q3 Results
• Positive Sentiment: Management raised forward guidance materially — Q4 EPS guide and full‑year FY2026 EPS guidance were well above Street estimates (company gave Q4 EPS and FY EPS ranges that exceeded consensus), signaling stronger expected profitability going forward. BusinessWire: Guidance
• Positive Sentiment: Management emphasized AI expansion and product momentum on the earnings call, which could support longer‑term revenue upside as customers adopt Search AI features. Yahoo: Earnings Highlights
• Neutral Sentiment: Full earnings/management discussion is available in the Q3 call transcript for investors wanting detail on margins, churn, and product metrics. Seeking Alpha: Call Transcript
• Negative Sentiment: GAAP profitability disappointed — one report shows GAAP EPS missed consensus (reported around -$0.03 vs. expectations), and the company still posts negative net margin and negative return on equity, which worried investors. MarketBeat: Earnings Snapshot
• Negative Sentiment: Market punished the stock despite revenue outperformance and raised guidance — coverage notes and headlines report a sharp drop after the print, signaling investors were focused on profitability, GAAP miss, or near‑term execution risks. Investing.com: Shares Tumble

Hedge Funds Weigh In On Elastic

Several hedge funds and other institutional investors have recently modified their holdings of the business. AQR Capital Management LLC boosted its stake in Elastic by 153.4% in the fourth quarter. AQR Capital Management LLC now owns 7,545,081 shares of the company’s stock valued at $569,201,000 after buying an additional 4,567,720 shares in the last quarter. FIL Ltd lifted its holdings in shares of Elastic by 36.9% in the fourth quarter. FIL Ltd now owns 3,628,748 shares of the company’s stock worth $273,753,000 after acquiring an additional 977,578 shares during the last quarter. Alyeska Investment Group L.P. boosted its stake in shares of Elastic by 490.4% in the 3rd quarter. Alyeska Investment Group L.P. now owns 1,113,503 shares of the company’s stock valued at $94,080,000 after purchasing an additional 924,911 shares in the last quarter. Vanguard Group Inc. boosted its stake in shares of Elastic by 7.4% in the 3rd quarter. Vanguard Group Inc. now owns 10,206,204 shares of the company’s stock valued at $862,322,000 after purchasing an additional 705,991 shares in the last quarter. Finally, Qube Research & Technologies Ltd grew its holdings in shares of Elastic by 302.1% during the 2nd quarter. Qube Research & Technologies Ltd now owns 932,630 shares of the company’s stock valued at $78,649,000 after purchasing an additional 700,697 shares during the last quarter. Institutional investors own 97.03% of the company’s stock.

Elastic Stock Performance

The firm has a market capitalization of $5.54 billion, a price-to-earnings ratio of -51.06, a PEG ratio of 235.94 and a beta of 0.93. The company has a current ratio of 1.97, a quick ratio of 1.97 and a debt-to-equity ratio of 0.64. The stock’s 50-day moving average is $68.90 and its 200-day moving average is $77.96.

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.