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

Elastic (NYSE:ESTC) gapped down prior to trading on Friday after DA Davidson lowered their price target on the stock from $100.00 to $75.00. The stock had previously closed at $103.64, but opened at $79.22. DA Davidson currently has a neutral rating on the stock. Elastic shares last traded at $76.00, with a volume of 2,719,594 shares trading hands.

A number of other equities analysts have also recently commented on ESTC. Robert W. Baird cut shares of Elastic from an “outperform” rating to a “neutral” rating and cut their price target for the stock from $135.00 to $95.00 in a research note on Friday. Stifel Nicolaus lowered their price target on shares of Elastic from $120.00 to $98.00 and set a “buy” rating for the company in a report on Friday. Oppenheimer lowered their price target on shares of Elastic from $150.00 to $125.00 and set an “outperform” rating for the company in a report on Friday. Citigroup upped their price target on shares of Elastic from $155.00 to $160.00 and gave the company a “buy” rating in a report on Wednesday. Finally, Wells Fargo & Company lowered their price target on shares of Elastic from $145.00 to $100.00 and set an “overweight” rating for the company in a report on Friday. Eight investment analysts have rated the stock with a hold rating and thirteen have given a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $105.20.

Insider Activity

In other news, CFO Janesh Moorjani sold 10,011 shares of the business’s stock in a transaction on Monday, June 10th. The shares were sold at an average price of $109.90, for a total transaction of $1,100,208.90. Following the completion of the sale, the chief financial officer now directly owns 202,491 shares of the company’s stock, valued at $22,253,760.90. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, CFO Janesh Moorjani sold 10,011 shares of Elastic stock in a transaction dated Monday, June 10th. The stock was sold at an average price of $109.90, for a total value of $1,100,208.90. Following the completion of the sale, the chief financial officer now directly owns 202,491 shares in the company, valued at $22,253,760.90. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Shay Banon sold 5,260 shares of Elastic stock in a transaction dated Monday, June 10th. The shares were sold at an average price of $109.89, for a total value of $578,021.40. Following the completion of the sale, the chief technology officer now owns 4,545,856 shares of the company’s stock, valued at $499,544,115.84. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 355,312 shares of company stock valued at $38,626,610. 18.10% of the stock is currently owned by company insiders.

Institutional Trading of Elastic

Several institutional investors and hedge funds have recently made changes to their positions in ESTC. Baillie Gifford & Co. raised its holdings in shares of Elastic by 30.8% in the first quarter. Baillie Gifford & Co. now owns 10,156,726 shares of the company’s stock valued at $1,018,110,000 after acquiring an additional 2,392,356 shares in the last quarter. 1832 Asset Management L.P. bought a new position in Elastic in the second quarter worth about $248,335,000. Assenagon Asset Management S.A. bought a new position in Elastic in the second quarter worth about $102,169,000. Norges Bank bought a new position in Elastic in the fourth quarter worth about $92,847,000. Finally, Federated Hermes Inc. raised its holdings in Elastic by 32,630.2% in the second quarter. Federated Hermes Inc. now owns 615,655 shares of the company’s stock worth $70,129,000 after purchasing an additional 613,774 shares in the last quarter. 97.03% of the stock is currently owned by institutional investors.

Elastic Price Performance

The firm has a market capitalization of $7.75 billion, a P/E ratio of 143.70 and a beta of 0.98. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.76 and a quick ratio of 1.76. The stock’s fifty day simple moving average is $109.70 and its 200 day simple moving average is $108.47.

Elastic (NYSE:ESTC) last announced its earnings results on Thursday, May 30th. The company reported ($0.39) EPS for the quarter, missing analysts’ consensus estimates of ($0.36) by ($0.03). The firm had revenue of $335.00 million during the quarter, compared to the consensus estimate of $329.15 million. Elastic had a negative return on equity of 20.83% and a net margin of 4.87%. On average, equities research analysts predict that Elastic will post -1.12 EPS for the current year.

Elastic Company Profile

Elastic N.V., a data analytics company, delivers solutions designed to run in public or private clouds in multi-cloud environments. It primarily offers Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as performs search, analysis, and visualization on that data.