Elastic (NYSE:ESTC) Releases Quarterly Earnings Results, Misses Estimates By $0.64 EPS

Elastic (NYSE:ESTC) announced its quarterly earnings data on Thursday. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of $0.58 by ($0.64), Zacks reports. Elastic had a negative net margin of 5.38% and a negative return on equity of 1.68%. Elastic updated its Q3 2026 guidance to 0.630-0.65 EPS.

Elastic Stock Performance

Shares of ESTC stock traded down $5.88 on Thursday, hitting $82.40. The company had a trading volume of 3,547,741 shares, compared to its average volume of 1,730,299. Elastic has a twelve month low of $70.14 and a twelve month high of $118.84. The company has a quick ratio of 2.09, a current ratio of 2.09 and a debt-to-equity ratio of 0.59. The firm has a market cap of $8.76 billion, a P/E ratio of -103.01 and a beta of 1.04. The company has a 50-day moving average price of $86.96 and a 200-day moving average price of $85.58.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on ESTC shares. Cowen restated a “hold” rating on shares of Elastic in a research note on Friday, August 29th. Royal Bank Of Canada upped their target price on Elastic from $106.00 to $125.00 and gave the company an “outperform” rating in a research report on Friday, August 29th. Truist Financial lowered their price target on Elastic from $140.00 to $120.00 and set a “buy” rating for the company in a research report on Wednesday. Needham & Company LLC reissued a “hold” rating on shares of Elastic in a report on Friday, October 10th. Finally, Wells Fargo & Company started coverage on Elastic in a research note on Tuesday, September 30th. They issued an “equal weight” rating and a $90.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $118.00.

Elastic declared that its board has authorized a share buyback plan on Thursday, October 9th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the company to buy shares of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its stock is undervalued.

Insider Activity at Elastic

In other Elastic news, insider Ken Exner sold 6,290 shares of the business’s stock in a transaction that occurred on Tuesday, September 9th. The stock was sold at an average price of $90.12, for a total value of $566,854.80. Following the completion of the transaction, the insider directly owned 233,582 shares of the company’s stock, valued at approximately $21,050,409.84. The trade was a 2.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CRO Mark Eugene Dodds sold 5,037 shares of the company’s stock in a transaction that occurred on Tuesday, September 9th. The stock was sold at an average price of $90.12, for a total value of $453,934.44. Following the completion of the sale, the executive owned 167,284 shares in the company, valued at approximately $15,075,634.08. This represents a 2.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 352,042 shares of company stock valued at $31,087,394 in the last 90 days. 12.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ESTC. Quantinno Capital Management LP raised its holdings in Elastic by 14.7% in the 2nd quarter. Quantinno Capital Management LP now owns 149,771 shares of the company’s stock worth $12,630,000 after purchasing an additional 19,215 shares during the period. Ieq Capital LLC grew its holdings in Elastic by 30.3% in the second quarter. Ieq Capital LLC now owns 108,071 shares of the company’s stock valued at $9,114,000 after purchasing an additional 25,157 shares during the period. Treasurer of the State of North Carolina increased its position in shares of Elastic by 6.3% in the second quarter. Treasurer of the State of North Carolina now owns 42,353 shares of the company’s stock valued at $3,572,000 after buying an additional 2,518 shares in the last quarter. Sei Investments Co. raised its stake in shares of Elastic by 17.4% during the 2nd quarter. Sei Investments Co. now owns 69,414 shares of the company’s stock worth $5,854,000 after buying an additional 10,313 shares during the period. Finally, Nebula Research & Development LLC acquired a new position in shares of Elastic during the 2nd quarter worth approximately $1,124,000. Hedge funds and other institutional investors own 97.03% of the company’s stock.

About Elastic

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.