Elastic (NYSE:ESTC) Hits New 12-Month Low – Should You Sell?

Elastic N.V. (NYSE:ESTC)’s share price hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $49.71 and last traded at $51.1860, with a volume of 300452 shares trading hands. The stock had previously closed at $52.89.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. DA Davidson lowered their price objective on shares of Elastic from $80.00 to $65.00 and set a “neutral” rating for the company in a research note on Monday, March 2nd. Piper Sandler cut their target price on Elastic from $110.00 to $85.00 and set an “overweight” rating on the stock in a research report on Friday, February 27th. Canaccord Genuity Group reduced their target price on Elastic from $115.00 to $90.00 and set a “buy” rating for the company in a research note on Friday, February 27th. Guggenheim reaffirmed a “buy” rating and set a $116.00 price target on shares of Elastic in a research report on Wednesday, February 18th. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Elastic in a research note on Wednesday, January 21st. Seventeen research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $95.25.

Elastic Price Performance

The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.72. The stock’s 50 day moving average price is $60.01 and its two-hundred day moving average price is $74.28. The stock has a market cap of $5.18 billion, a price-to-earnings ratio of -62.58, a price-to-earnings-growth ratio of 63.82 and a beta of 0.98.

Elastic (NYSE:ESTC) last posted its earnings results on Thursday, February 26th. The company reported $0.73 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 net margin of 5.04% and a negative return on equity of 2.34%. The firm’s quarterly revenue was up 17.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.63 earnings per share. Elastic has set its FY 2026 guidance at 2.500-2.540 EPS and its Q4 2026 guidance at 0.550-0.570 EPS. Equities research analysts forecast that Elastic N.V. will post -0.77 EPS for the current fiscal year.

Insider Transactions at Elastic

In related news, CTO Shay Banon sold 4,283 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 $223,915.24. Following the sale, the chief technology officer directly owned 4,354,945 shares of the company’s stock, valued at $227,676,524.60. This trade represents a 0.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Jane E. Bone sold 887 shares of Elastic stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $52.28, for a total value of $46,372.36. Following the transaction, the chief accounting officer owned 42,284 shares of the company’s stock, valued at approximately $2,210,607.52. This represents a 2.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 39,375 shares of company stock valued at $2,091,797. 12.70% of the stock is owned by insiders.

Institutional Trading of Elastic

A number of hedge funds have recently added to or reduced their stakes in ESTC. Sound Income Strategies LLC purchased a new position in Elastic in the fourth quarter valued at $25,000. Geneos Wealth Management Inc. purchased a new stake in shares of Elastic during the 2nd quarter worth about $31,000. Activest Wealth Management boosted its stake in shares of Elastic by 3,181.3% during the 4th quarter. Activest Wealth Management now owns 525 shares of the company’s stock worth $40,000 after acquiring an additional 509 shares in the last quarter. Aster Capital Management DIFC Ltd grew its position in shares of Elastic by 206.1% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company’s stock valued at $42,000 after acquiring an additional 371 shares during the period. Finally, Promus Capital LLC acquired a new stake in shares of Elastic during the 2nd quarter valued at about $45,000. 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.