Elastic stock: buy or sell?

ESTC stock price: $94.27 0.61% At close on September 20th, 2019

Updated on:
September 20th, 2019

4

Elastic shares raised 0.61% to $94.27 today. On September/11 ESTC skyrocketed an exceptional 9.51%.

Should I buy Elastic stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to define your own trading plan that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Elastic stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean ESTC will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Elastic stock a buy?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we collected 15 ratings published for ESTC stock in the last month.

The general sentiment of these ratings is bullish for ESTC stock, with 11 positive ratings.
Is ESTC a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-29Stifel Nicolausn/aHold
2019-8-29Royal Bank of Canadan/aOutperform
2019-8-29Monness Crespi & Hardtn/aBuy
2019-8-29JPMorgan Chase & Co.n/aNeutral
2019-8-29Citigroupn/aNeutral
2019-8-29Canaccord Genuityn/aHold
2019-8-29Barclaysn/aOverweight
2019-8-29Bank of American/aBuy
2019-8-14Royal Bank of CanadaSector PerformOutperform
2019-6-6Monness Crespi & HardtBuyBuy
2019-6-6Bank of American/aBuy
2019-4-4KeyCorpn/aBuy
2019-4-4KeyCorpn/aOverweight
2019-4-2FBN Securitiesn/aOutperform
2019-4-18KeyCorpn/aBuy

Elastic stock analysis

Daily outlook

Shares of Elastic raised a slightly fine 0.61% and closed at $94.27.

Shares of Elastic ended today at $94.27 and raised a slightly fine 0.61%. In the last 22 days when ESTC stock price broke up the SMA200d line, it gained $14.14 (17.65%). Since SMA50d and SMA100d crossed up on July, ESTC price slid a -6.09%. On July, ESTC hit a new all time high, pushing higher than on July tops. Check different trading setups that use ATHs as triggers.

ESTC stock chart (daily)

Weekly outlook

After boosting a brilliant 5.29% in a week last week, Elastic closed this week at $94.27 and grew a tiny 0.55%. Counting this, it's been 4 green weeks in a row, gaining $13.82 or 16.21%. By mid August ESTC plunged a scary -5.95% in just one week.

Having descending tops is not good news for traders invested in Elastic. Although it's only a warning signal, investors should be on alert during next weeks to identify possible new risks. It's important ESTC stock price keeps the level, and maybe bounce up from there forming a double bottom shape. Not so far away is the last all-time high Elastic marked late July. Since late August when ESTC stock price broke up the SMA40w line, it gained $13.82 (17.18%). Since late July when SMA10w and SMA20w crossed up, ESTC price slipped $-4.54 per share (-4.59%).

ESTC stock chart (weekly)

Elastic stock price history

Elastic stock went public on October with a price of $70.001. Since then, ESTC stock grew a 34.70%, with a yearly average of inf%. If you had invested $1,000 in Elastic stock in 2018, it would worth $347.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Elastic stock historical price chart

ESTC stock reached all-time highs on July with a price of $104.10.

Elastic stock price target is $110.40

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We have 14 price forecasts for ESTC stock published in the last month:
ESTC stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-29Stifel NicolausRaises Target$85.00$100.0017.6%
2019-8-29Royal Bank of CanadaRaises Targetn/a$117.00-
2019-8-29Monness Crespi & HardtRaises Target$125.00$130.004%
2019-8-29JPMorgan Chase & Co.Raises Target$80.00$85.006.3%
2019-8-29CitigroupRaises Target$98.00$100.002%
2019-8-29Canaccord GenuityRaises Target$85.00$90.005.9%
2019-8-29BarclaysRaises Target$108.00$109.000.9%
2019-8-29Bank of AmericaReiterates$135.00$137.001.5%
2019-8-14Royal Bank of CanadaUpgrades$94.00$112.0019.1%
2019-6-6Monness Crespi & HardtReiterates$120.00$125.004.2%
2019-6-6Bank of AmericaRaises Target$115.00$135.0017.4%
2019-4-4KeyCorpReiteratesn/a$102.00-
2019-4-4KeyCorpInitiatesn/a$102.00-
2019-4-18KeyCorpReiteratesn/a$102.00-
(in average)$104.50$110.406.0%
Moving in a range from $137.00 and $85.00, the price prediction for ESTC stock is $110.40. In average, analysts' outlook on ESTC price target is positive, increasing the prediction by a 6.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Elastic failed to meet the forecasts of the experts and posted a shocking EPS of $-0.29 per share when experts were expecting $-0.37.
ESTC earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q3-n/an/an/a
2017-Q4-n/an/an/a
2018-Q2-n/an/an/a
2018-Q3-n/an/an/a
2018-Q42019-02-27-0.31n/an/a
2019-Q12019-02-27-0.37-0.29n/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw an extraordinary growth of 81.38% to $159.94 million USD. Similarly, its earnings margin (compared to sales) boosted to -32.97%, that is $-52.73 million.

Elastic presents anual results in April, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Elastic TTM sales up to January 2019 were $240.63 and earnings $-88.87 million dollars. When comparing this TTM figures with the last reported annuality, we can review Elastic business evolution since April 2018: Annual turnover up to January, compared to lastest yearly report, climbed an astounding 50.45%. Regarding profit margin, Elastic slightly fell -3.97% to -32.97%

ESTC annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2017$88 M-$-51.97 M-58.9%-
2018$160 M81.38%$-52.73 M-33.0%1.46%
TTM $241 M50.45%$-88.87 M-36.9%68.55%

Quarterly financial results

Elastic posted $70.84 M in revenues for 2019-Q1, a 11.42% up compared to previous quarter. Reported quarter income marked $-21.35 million with a profit margin of -30.14%. Profit margin climbed a 13.18% compared to previous quarter when profit margin was -43.32%. When comparing sales to same quarter last year, Elastic sales marked and a . Looking back to recent quarterly results, Elastic posted 5 positive quarters in a row.
ESTC quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q3$32 M-$-9.97 M-31.5%-
2017-Q4$37 M17.05%$-8.03 M-21.7%-19.46%
2018-Q2$50 M33.84%$-21.40 M-43.2%166.64%
2018-Q3$57 M14.27%$-18.58 M-32.8%-13.20%
2018-Q4$64 M12.24%$-27.54 M-43.3%48.23%
2019-Q1$71 M11.42%$-21.35 M-30.1%-22.47%

Elastic ownership

When you are planning to buy shares of a company, it's worth to overview its ownership structure.

Elastic shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 44.38% of all shares.

In case of Elastic stock, 52.94% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for ESTC stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related companies:

ESTC
Market cap$7.2 B
Total shares76.5 M
Float shares44.5 M
  - Institutional holdings (%)52.9%
  - Insider holdings (%)44.4%
Shares in short selling0.0%

Elastic summary

Friday, September 20th, 2019
Open$93.69
Close$94.27
Day range$92.80 - $94.94
Previous close$93.70
Session gain0.61%
Average true range$4.60
50d mov avg$90.63
100d mov avg$85.67
200d mov avg$83.41
Daily pattern
Weekly pattern lt01a

Elastic performance

To measure stock performance is always good to compare with competitors or related stocks. In the following table, we compare Elastic performance to :
Stock3m6m12m
ESTCElastic23.71%6.74%0.00%

Elastic competitors

Unfortunately, we could not find any public company that could be defined as Elastic competitor. This doesn't mean Elastic does not have any competitor in the market, it's just we could not detected it.