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 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. “

Other research analysts have also issued reports about the company. Summit Insights started coverage on Elastic in a report on Sunday, June 20th. They set a “buy” rating and a $180.00 price target for the company. Barclays upped their target price on Elastic from $185.00 to $200.00 and gave the company an “overweight” rating in a research note on Friday, September 17th. They noted that the move was a valuation call. Monness Crespi & Hardt upped their target price on Elastic from $212.00 to $230.00 and gave the company a “buy” rating in a research note on Thursday, August 26th. Sumitomo Mitsui Financial Group started coverage on Elastic in a research note on Wednesday, June 16th. They issued an “outperform” rating and a $150.00 target price for the company. Finally, Rosenblatt Securities upped their target price on Elastic from $180.00 to $185.00 and gave the company a “buy” rating in a research note on Thursday, August 26th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and sixteen have issued a buy rating to the company. Based on data from MarketBeat, Elastic currently has an average rating of “Buy” and an average target price of $182.37.

Elastic stock traded up $6.09 during trading hours on Wednesday, reaching $168.66. 676,873 shares of the company were exchanged, compared to its average volume of 919,361. The firm has a market cap of $15.48 billion, a price-to-earnings ratio of -103.47 and a beta of 1.10. The company has a current ratio of 2.71, a quick ratio of 2.71 and a debt-to-equity ratio of 1.24. The stock has a 50-day moving average of $157.80 and a 200 day moving average of $139.68. Elastic has a 12 month low of $97.48 and a 12 month high of $176.49.

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

In other news, Director Jonathan Chadwick sold 6,250 shares of the stock in a transaction on Monday, July 26th. The stock was sold at an average price of $148.18, for a total transaction of $926,125.00. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Paul Andrew Appleby sold 7,448 shares of the stock in a transaction on Thursday, September 9th. The stock was sold at an average price of $162.43, for a total value of $1,209,778.64. Following the sale, the insider now owns 54,065 shares in the company, valued at approximately $8,781,777.95. The disclosure for this sale can be found here. Insiders sold 569,628 shares of company stock worth $93,972,004 over the last quarter. Company insiders own 20.40% of the company’s stock.

Several hedge funds have recently made changes to their positions in the company. 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 valued at $47,000 after acquiring an additional 147 shares during the last quarter. Maverick Capital Ltd. bought a new position in Elastic in the first quarter valued at about $65,000. Capital Analysts LLC bought a new position in Elastic in the first quarter valued at about $98,000. Panagora Asset Management Inc. bought a new position in Elastic in the first quarter valued at about $112,000. Finally, Rockefeller Capital Management L.P. boosted its holdings in Elastic by 18.8% in 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 last quarter. Institutional investors own 75.60% of the company’s stock.

About Elastic

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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