Elastic N.V. (ESTC) Shares: Cheap or Risky?


Elastic N.V. (NYSE:ESTC) saw a downside of -2.19% to $56.06 after subtracting -$1.25 on Tuesday. The 5-day average trading volume is 1,214,498 shares of the company’s common stock. It has gained $58.25 in the past week and touched a new high 4 times within the past 5 days. An average of 1,186,189 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,533,496.

ESTC’s 1-month performance is 7.85% or $4.50 on its low of $46.18 reached on 01/06/23. The company’s shares have touched a 52-week low of $46.18 and high of $98.75, with the stock’s rally to the 52-week high happening on 01/24/23. YTD, ESTC has achieved 11.28% or $4.44 and has reached a new high 5 times. However, the current price is down -43.24% from the 52-week high price.

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Insider Transactions

ESTC stock investors last saw insider trading activity on Dec 09.Herzog Carolyn (Chief Legal Officer) most recently sold 1,324 shares at $53.60 per share on Dec 09. This transaction cost the insider $70,969. Chief Product Officer, Exner Ken, sold 1,405 shares at a price of $53.60 on Dec 09. Then, on Dec 09, Chief Technology Officer Banon Shay sold 2,026 shares at a price of $53.60 per share. This transaction amounted to $108,597.

Valuation Metrics

ESTC stock has a beta of 1.05. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 5.17 while the price-to-book (PB) in the most recent quarter is 13.94, with the price to cash flow ratio at 16849.14.

Elastic N.V.’s quick ratio for the period ended October 30 was 1.90, with the current ratio over the same period at 1.90. As well, the company’s long term debt to equity for the quarter ending October 30 was 1.45, while the total debt to equity was 1.45. In terms of profitability, the gross margin trailing 12 months is 71.70%. The firm’s gross profit as reported stood at $630.18 million against revenue of $862.37 million.

Earnings Surprise

For the quarterly period ending October 30 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 0.61% to -$47.31 million, while revenue of -$69.55 million was -47.01% off the previous quarter. Analysts expected ESTC to announce -$0.1 per share in earnings in its latest quarter, but it posted $0, representing a 100.00% surprise. EBITDA for the quarter stood at more than -$25.33 million. ESTC stock balance sheet for the quarter ending October 30 shows that total liabilities totaled 1.2 billion, with total debt at $598.5 million. Shareholders hold equity totaling $95.61 million.

Let’s look briefly at Elastic N.V. (ESTC) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 63.15% to suggest the stock is trending Neutral, with historical volatility in this time period at 50.07%.

The stock’s 5-day moving average is $54.11, reflecting a +6.51% or $3.42 change from its current price. ESTC is currently trading +7.54% above its 20-day SMA, -33.97% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +4.46% and SMA200 by-36.06%.

Stochastic %K and %D was 92.91% and 83.25% and the average true range (ATR) pointed at 2.82. The RSI (14) points at 57.22%, while the 14-day stochastic is at 80.86% with the period’s ATR at 2.87. The stock’s 9-day MACD Oscillator is pointing at 3.10 and 4.32 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Elastic N.V. (NYSE: ESTC), Oppenheimer reiterated its an Outperform rating for the company but lifted their price target by $90 to $80. Analysts offering their rating for ESTC stock have a consensus rating for the stock as Overweight. Currently, 1 brokerage advisors rate ESTC as a “sell,”, while 6 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 2 rates the stock as overweight while 13 have offered a “buy” rating.

What is ESTC’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $50.00 and a high of $100.00, with their median price target at $70.50. Looking at these predictions, the average price target given by analysts is for Elastic N.V. (ESTC) stock is $71.48.


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