Zacks Research Downgrades Elastic (NYSE:ESTC) to Strong Sell

Elastic (NYSE:ESTC) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Thursday,Zacks.com reports.

Several other research firms also recently issued reports on ESTC. Morgan Stanley cut their price objective on Elastic from $80.00 to $73.00 and set an “overweight” rating on the stock in a report on Monday, March 2nd. Royal Bank Of Canada cut their price objective on Elastic from $80.00 to $70.00 and set an “outperform” rating on the stock in a report on Thursday, April 16th. Wolfe Research set a $55.00 price objective on Elastic in a report on Friday. Wells Fargo & Company cut their price objective on Elastic from $75.00 to $60.00 and set an “equal weight” rating on the stock in a report on Friday, February 27th. Finally, Truist Financial cut their price objective on Elastic from $105.00 to $80.00 and set a “buy” rating on the stock in a report on Friday, February 27th. Eighteen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, Elastic currently has a consensus rating of “Moderate Buy” and a consensus target price of $80.04.

Elastic Price Performance

Shares of NYSE ESTC opened at $64.82 on Thursday. Elastic has a twelve month low of $42.05 and a twelve month high of $96.07. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.72. The company has a market capitalization of $6.71 billion, a price-to-earnings ratio of 18.52, a PEG ratio of 109.01 and a beta of 0.88. The firm has a 50-day moving average of $50.38 and a two-hundred day moving average of $62.83.

Elastic (NYSE:ESTC) last issued its quarterly earnings results on Thursday, May 28th. The company reported $0.61 earnings per share for the quarter, beating analysts’ consensus estimates of $0.56 by $0.05. Elastic had a net margin of 21.14% and a negative return on equity of 2.02%. The company had revenue of $450.68 million during the quarter, compared to the consensus estimate of $446.66 million. During the same period in the prior year, the company earned $0.47 EPS. Elastic’s revenue was up 16.0% on a year-over-year basis. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. As a group, analysts expect that Elastic will post 0.02 earnings per share for the current fiscal year.

Insider Transactions at Elastic

In related news, CRO Mark Eugene Dodds sold 3,723 shares of the stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $52.28, for a total value of $194,638.44. Following the transaction, the executive owned 152,563 shares in the company, valued at approximately $7,975,993.64. This represents a 2.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CTO Shay Banon sold 4,283 shares of the stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $52.28, for a total value of $223,915.24. Following the completion of the transaction, the chief technology officer owned 4,354,945 shares in the company, valued at $227,676,524.60. This represents a 0.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 38,188 shares of company stock valued at $1,996,469 in the last ninety days. 12.70% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Elastic

A number of hedge funds have recently added to or reduced their stakes in ESTC. Sound Income Strategies LLC bought a new stake in Elastic during the fourth quarter worth approximately $25,000. Geneos Wealth Management Inc. bought a new stake in Elastic during the second quarter worth approximately $31,000. Bessemer Group Inc. bought a new stake in Elastic during the first quarter worth approximately $25,000. Activest Wealth Management boosted its position in Elastic by 3,181.3% during the fourth quarter. Activest Wealth Management now owns 525 shares of the company’s stock worth $40,000 after purchasing an additional 509 shares during the period. Finally, Aster Capital Management DIFC Ltd boosted its position in Elastic by 206.1% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company’s stock worth $42,000 after purchasing an additional 371 shares during the period. Institutional investors and hedge funds own 97.03% of the company’s stock.

Elastic News Summary

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Elastic beat fiscal Q4 expectations, reporting EPS of $0.61 versus $0.56 expected and revenue of $450.7 million versus $446.7 million expected, with revenue up 16% year over year. Elastic Reports Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: The company also issued first-quarter and full-year guidance above consensus for EPS, suggesting management sees continued earnings momentum. Elastic Reports Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: Wall Street remains broadly constructive: Citigroup raised its price target to $104, and other firms like Jefferies, Canaccord, Oppenheimer, and Barclays still have buy/outperform-style ratings even after trimming targets. Analyst target updates
• Neutral Sentiment: Several analysts cut price targets after the report, including Barclays, Jefferies, Canaccord Genuity, Wedbush, and Oppenheimer, which signals some valuation caution rather than a thesis change. Analyst target updates
• Neutral Sentiment: Some investors may also be focusing on management’s fiscal 2027 outlook implying mid-teens revenue growth, which is still healthy but may look slower than the market hoped for after a strong quarter. Elastic shares fall 3.2% as investors digest Q4 results and fiscal 2027 outlook
• Negative Sentiment: Despite the beat, the stock has been volatile because investors were disappointed by the initial post-earnings reaction and are weighing strong growth against the company’s still-negative margins. Elastic N.V. (ESTC) Stock Falls on Q4 2026 Earnings

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.