Elastic (NYSE:ESTC) Trading Down 7.7% – Here’s Why

Elastic (NYSE:ESTC)’s stock price traded down 7.7% during trading on Friday . The stock traded as low as $91.42 and last traded at $91.67. 701,312 shares were traded during trading, a decline of 45% from the average session volume of 1,285,259 shares. The stock had previously closed at $99.35.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on ESTC shares. Royal Bank of Canada raised their target price on Elastic from $110.00 to $130.00 and gave the company an “outperform” rating in a research report on Friday, November 22nd. Guggenheim raised their price objective on Elastic from $130.00 to $136.00 and gave the company a “buy” rating in a report on Friday, February 28th. Stifel Nicolaus lifted their target price on shares of Elastic from $98.00 to $132.00 and gave the stock a “buy” rating in a research note on Friday, November 22nd. Robert W. Baird increased their target price on shares of Elastic from $135.00 to $140.00 and gave the company an “outperform” rating in a research report on Friday, February 28th. Finally, Wedbush lowered shares of Elastic from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, December 18th. Seven analysts have rated the stock with a hold rating, eighteen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $131.52.

Elastic Stock Down 4.4 %

The stock has a market capitalization of $9.84 billion, a price-to-earnings ratio of 172.61 and a beta of 1.20. The business has a 50-day moving average of $106.19 and a 200-day moving average of $95.34. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.99 and a current ratio of 1.99.

Elastic (NYSE:ESTC) last announced its quarterly earnings results on Thursday, February 27th. The company reported ($0.01) earnings per share for the quarter, missing analysts’ consensus estimates of $0.47 by ($0.48). Elastic had a net margin of 4.39% and a negative return on equity of 13.20%. The company had revenue of $382.08 million for the quarter, compared to analyst estimates of $368.85 million. On average, sell-side analysts expect that Elastic will post -0.77 EPS for the current year.

Insiders Place Their Bets

In related news, CTO Shay Banon sold 140,129 shares of the business’s stock in a transaction on Tuesday, March 4th. The stock was sold at an average price of $106.68, for a total value of $14,948,961.72. Following the sale, the chief technology officer now owns 2,254,978 shares in the company, valued at approximately $240,561,053.04. The trade was a 5.85 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Ashutosh Kulkarni sold 7,017 shares of the stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $108.12, for a total value of $758,678.04. Following the transaction, the chief executive officer now directly owns 395,326 shares in the company, valued at approximately $42,742,647.12. The trade was a 1.74 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 172,814 shares of company stock worth $18,596,060 over the last ninety days. Corporate insiders own 15.90% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Sylebra Capital LLC grew its stake in shares of Elastic by 62.6% in the fourth quarter. Sylebra Capital LLC now owns 4,561,462 shares of the company’s stock worth $451,950,000 after acquiring an additional 1,756,842 shares in the last quarter. FMR LLC boosted its holdings in Elastic by 25.6% in the third quarter. FMR LLC now owns 5,475,297 shares of the company’s stock valued at $420,284,000 after purchasing an additional 1,115,750 shares during the period. Norges Bank acquired a new position in Elastic during the 4th quarter worth $102,485,000. Arrowstreet Capital Limited Partnership increased its holdings in Elastic by 5,972.4% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 744,358 shares of the company’s stock worth $73,751,000 after purchasing an additional 732,100 shares during the period. Finally, Atreides Management LP raised its position in Elastic by 57.2% in the 3rd quarter. Atreides Management LP now owns 1,687,791 shares of the company’s stock valued at $129,555,000 after purchasing an additional 614,309 shares in the last quarter. Institutional investors and hedge funds own 97.03% of the company’s stock.

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.