Morgan Stanley Has Lowered Expectations for Elastic (NYSE:ESTC) Stock Price

Elastic (NYSE:ESTC) had its price target lowered by stock analysts at Morgan Stanley from $80.00 to $73.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm currently has an “overweight” rating on the stock. Morgan Stanley’s price target indicates a potential upside of 37.37% from the stock’s previous close.

Several other brokerages have also recently issued reports on ESTC. JPMorgan Chase & Co. lowered their price objective on shares of Elastic from $113.00 to $98.00 and set an “overweight” rating for the company in a research note on Friday, February 20th. Stifel Nicolaus lowered their price target on Elastic from $134.00 to $108.00 and set a “buy” rating for the company in a research report on Friday, November 21st. Weiss Ratings restated a “sell (d)” rating on shares of Elastic in a report on Wednesday, January 21st. Rosenblatt Securities reduced their price objective on Elastic from $130.00 to $110.00 and set a “buy” rating on the stock in a research note on Friday, January 30th. Finally, UBS Group dropped their target price on shares of Elastic from $125.00 to $110.00 and set a “buy” rating for the company in a research report on Friday, November 21st. Seventeen investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Elastic currently has an average rating of “Moderate Buy” and an average target price of $95.88.

Elastic Trading Up 2.1%

Shares of NYSE:ESTC traded up $1.07 during midday trading on Monday, reaching $53.14. The company’s stock had a trading volume of 959,760 shares, compared to its average volume of 2,040,110. The firm has a market cap of $5.60 billion, a price-to-earnings ratio of -66.49, a price-to-earnings-growth ratio of 211.81 and a beta of 0.98. The business has a 50 day moving average price of $68.42 and a 200 day moving average price of $77.86. Elastic has a 1 year low of $49.90 and a 1 year high of $116.00. The company has a quick ratio of 1.97, a current ratio of 1.97 and a debt-to-equity ratio of 0.64.

Elastic (NYSE:ESTC) last posted its quarterly earnings results on Thursday, February 26th. The company reported $0.73 EPS for the quarter, beating the consensus estimate of $0.64 by $0.09. The company had revenue of $449.88 million during the quarter, compared to analysts’ expectations of $438.37 million. Elastic had a negative return on equity of 2.25% and a negative net margin of 5.04%.The firm’s revenue was up 17.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.63 EPS. Elastic has set its FY 2026 guidance at 2.500-2.540 EPS and its Q4 2026 guidance at 0.550-0.570 EPS. Research analysts forecast that Elastic will post -0.77 EPS for the current year.

Insider Activity at Elastic

In other news, CTO Shay Banon sold 4,552 shares of the company’s stock in a transaction on Tuesday, December 9th. The shares were sold at an average price of $75.05, for a total value of $341,627.60. Following the completion of the transaction, the chief technology officer directly owned 4,359,228 shares in the company, valued at approximately $327,160,061.40. This represents a 0.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Navam Welihinda sold 1,046 shares of Elastic stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $74.51, for a total transaction of $77,937.46. Following the sale, the chief financial officer directly owned 123,874 shares in the company, valued at $9,229,851.74. This trade represents a 0.84% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 61,828 shares of company stock valued at $4,641,010. 12.70% of the stock is currently owned by corporate insiders.

Institutional Trading of Elastic

Several institutional investors and hedge funds have recently bought and sold shares of ESTC. Vanguard Group Inc. lifted its stake in Elastic by 7.4% in the third quarter. Vanguard Group Inc. now owns 10,206,204 shares of the company’s stock valued at $862,322,000 after buying an additional 705,991 shares during the last quarter. AQR Capital Management LLC increased its holdings in shares of Elastic by 153.4% in the 4th quarter. AQR Capital Management LLC now owns 7,545,081 shares of the company’s stock worth $569,201,000 after acquiring an additional 4,567,720 shares during the period. Pictet Asset Management Holding SA lifted its position in Elastic by 3.2% in the 4th quarter. Pictet Asset Management Holding SA now owns 4,534,498 shares of the company’s stock valued at $342,127,000 after purchasing an additional 138,974 shares during the last quarter. FIL Ltd grew its position in Elastic by 36.9% in the 4th quarter. FIL Ltd now owns 3,628,748 shares of the company’s stock worth $273,753,000 after purchasing an additional 977,578 shares during the last quarter. Finally, Voya Investment Management LLC increased its stake in shares of Elastic by 4.7% in the third quarter. Voya Investment Management LLC now owns 1,781,925 shares of the company’s stock valued at $150,555,000 after purchasing an additional 79,465 shares during the period. Institutional investors and hedge funds own 97.03% of the company’s stock.

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.