Zacks Investment Research Lowers Elastic (NYSE:ESTC) to Sell

Elastic (NYSE:ESTC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday, Zacks.com reports.

According to Zacks, “Elastic N.V. is a search company. It primarily provides Elastic Stack, a set of software products which ingest and store data from various sources and formats, as well as performs search, analysis and visualization. Elastic N.V. is based in Mountain View, California. “

Several other research firms have also recently issued reports on ESTC. Oppenheimer raised their target price on shares of Elastic from $170.00 to $185.00 and gave the stock an “outperform” rating in a research report on Thursday, August 26th. Rosenblatt Securities raised their target price on shares of Elastic from $180.00 to $185.00 and gave the stock a “buy” rating in a research report on Thursday, August 26th. Sumitomo Mitsui Financial Group began coverage on shares of Elastic in a research report on Wednesday, June 16th. They issued an “outperform” rating and a $150.00 target price on the stock. Monness Crespi & Hardt raised their target price on shares of Elastic from $212.00 to $230.00 and gave the stock a “buy” rating in a research report on Thursday, August 26th. Finally, Royal Bank of Canada raised their target price on shares of Elastic from $194.00 to $200.00 and gave the stock an “outperform” rating in a research report on Thursday, August 26th. One research analyst has rated the stock with a sell rating, one has given a hold rating and sixteen have issued a buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $182.37.

Shares of Elastic stock traded up $6.09 during mid-day trading on Wednesday, hitting $168.66. 676,873 shares of the stock were exchanged, compared to its average volume of 919,361. Elastic has a twelve month low of $97.48 and a twelve month high of $176.49. The stock has a market capitalization of $15.48 billion, a price-to-earnings ratio of -103.47 and a beta of 1.10. The company has a 50-day simple moving average of $157.80 and a 200 day simple moving average of $139.68. The company has a current ratio of 2.71, a quick ratio of 2.71 and a debt-to-equity ratio of 1.24.

Elastic (NYSE:ESTC) last released its quarterly earnings results on Tuesday, August 24th. The company reported $0.04 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.10) by $0.14. Elastic had a negative net margin of 21.54% and a negative return on equity of 26.26%. The company had revenue of $193.10 million for the quarter, compared to analysts’ expectations of $173.21 million. During the same period last year, the company earned $0.06 EPS. The firm’s revenue for the quarter was up 49.8% compared to the same quarter last year. Equities research analysts forecast that Elastic will post -1.85 earnings per share for the current fiscal year.

In other news, Director Steven Schuurman sold 500,000 shares of Elastic stock in a transaction that occurred on Wednesday, September 8th. The shares were sold at an average price of $165.35, for a total transaction of $82,675,000.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Peter H. Fenton sold 48,000 shares of Elastic stock in a transaction that occurred on Monday, September 27th. The shares were sold at an average price of $163.81, for a total transaction of $7,862,880.00. The disclosure for this sale can be found here. Insiders have sold 569,628 shares of company stock worth $93,972,004 in the last quarter. Insiders own 20.40% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in ESTC. Berman Capital Advisors LLC boosted its holdings in Elastic by 84.5% in the third quarter. Berman Capital Advisors LLC now owns 321 shares of the company’s stock worth $47,000 after purchasing an additional 147 shares during the period. Maverick Capital Ltd. acquired a new position in shares of Elastic during the first quarter valued at $65,000. Capital Analysts LLC acquired a new position in shares of Elastic during the first quarter valued at $98,000. Panagora Asset Management Inc. acquired a new position in shares of Elastic during the first quarter valued at $112,000. Finally, Rockefeller Capital Management L.P. boosted its holdings in shares of Elastic by 18.8% during the first quarter. Rockefeller Capital Management L.P. now owns 1,212 shares of the company’s stock valued at $134,000 after acquiring an additional 192 shares during the period. 75.60% of the stock is owned by hedge funds and other institutional investors.

Elastic Company Profile

Elastic NV engages in the provision of open source search and analytics engine services. It offers Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as perform search, analysis, and visualization. The firms Elastic Stack product comprises Elasticsearch, a distributed, real-time search and analytics engine, and data store for various types of data, including textual, numerical, geospatial, structured, and unstructured; Kibana, a user interface, management, and configuration interface for the Elastic Stack; Beats, a single-purpose data shippers for sending data from edge machines to Elasticsearch or Logstash; and Logstash, a data processing pipeline for ingesting data into Elasticsearch or other storage systems.

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