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

Elastic N.V. (NYSE:ESTC) shares 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 changing hands.

Several other equities analysts also recently commented on ESTC. Citigroup dropped their target price on Elastic from $115.00 to $95.00 and set a “buy” rating for the company in a research report on Friday, February 20th. Guggenheim reiterated a “buy” rating and issued a $116.00 price objective on shares of Elastic in a report on Wednesday, February 18th. TD Cowen reiterated a “hold” rating on shares of Elastic in a research report on Monday. Wells Fargo & Company decreased their price target on shares of Elastic from $90.00 to $75.00 and set an “equal weight” rating for the company in a research report on Friday, November 21st. Finally, UBS Group cut their price target on shares of Elastic from $125.00 to $110.00 and set a “buy” rating on the stock in a report on Friday, November 21st. Seventeen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Elastic currently has a consensus rating of “Moderate Buy” and an average target price of $100.54.

Insider Buying and Selling at Elastic

In related news, Director Paul R. Auvil III acquired 10,000 shares of the company’s stock in a transaction dated Monday, December 1st. The stock was purchased at an average price of $71.02 per share, with a total value of $710,200.00. Following the completion of the purchase, the director owned 37,956 shares in the company, valued at $2,695,635.12. This trade represents a 35.77% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Ashutosh Kulkarni sold 20,413 shares of the firm’s stock in a transaction that occurred on Tuesday, December 9th. The stock was sold at an average price of $75.05, for a total transaction of $1,531,995.65. Following the completion of the transaction, the chief executive officer owned 431,901 shares in the company, valued at $32,414,170.05. This represents a 4.51% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 61,828 shares of company stock valued at $4,641,010. 12.70% of the stock is currently owned by corporate insiders.

Trending Headlines about Elastic

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

A number of hedge funds have recently modified their holdings of ESTC. AXQ Capital LP purchased a new stake in shares of Elastic in the second quarter worth $419,000. Geode Capital Management LLC increased its stake in Elastic by 3.6% in the 2nd quarter. Geode Capital Management LLC now owns 1,569,578 shares of the company’s stock worth $132,384,000 after buying an additional 54,812 shares in the last quarter. Mackenzie Financial Corp raised its holdings in Elastic by 622.2% during the second quarter. Mackenzie Financial Corp now owns 77,005 shares of the company’s stock valued at $6,494,000 after acquiring an additional 66,342 shares during the period. Panagora Asset Management Inc. lifted its position in shares of Elastic by 102.3% in the second quarter. Panagora Asset Management Inc. now owns 464,268 shares of the company’s stock valued at $39,152,000 after acquiring an additional 234,735 shares in the last quarter. Finally, Magnetar Financial LLC boosted its stake in shares of Elastic by 127.9% in the second quarter. Magnetar Financial LLC now owns 57,354 shares of the company’s stock worth $4,837,000 after acquiring an additional 32,184 shares during the period. Hedge funds and other institutional investors own 97.03% of the company’s stock.

Elastic Price Performance

The firm has a 50-day moving average of $68.90 and a 200-day moving average of $77.96. The stock has a market cap of $5.54 billion, a PE ratio of -51.06, a PEG ratio of 235.94 and a beta of 0.93. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.97 and a quick ratio of 1.97.

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.