Elastic stock: buy or sell?

ESTC stock price: $63.80 -3.55% At close on February 26th, 2020

Updated on:
February 26th, 2020

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After sliding a frightening -7.79% yesterday, Elastic closed today at $63.80 and collapsed a horrible -3.55%. Wednesday was the 4th red session in a row, sliding in full a -13.30%.

Should I buy Elastic stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to choose your own trading strategy that matches with 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.

Currently, Elastic stock doesn't match any of these trading strategies, so our recommendation is not to buy.

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. Unfortunately, we couldn't detect any rating for ESTC stock for the last month.

Elastic stock analysis

Daily outlook

After sliding a frightening -7.79% yesterday, Elastic closed today at $63.80 and collapsed a horrible -3.55%.

After sliding a frightening -7.79% yesterday, Elastic closed today at $63.80 and collapsed a horrible -3.55%.

ESTC stock chart (daily)

Weekly outlook

Elastic plunged a spooky -12.34% this week. Early February ESTC climbed a dazzling 6.78% in just one week.

Elastic stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Far behind is the all-time high Elastic recorded late July 2019 and since then the price is -38.71% below that top.

ESTC stock chart (weekly)

Elastic stock price history

Elastic stock went public on October 5th, 2018 with a price of $70.001. Since then, ESTC stock declined a -8.90%, with a yearly average of -8.90%.

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

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we have not detected any price forecast for Elastic stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Elastic disappointed experts when it reported an Earnings per Share (EPS) of $-0.29 when the market consensus was $-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

In 2018, Elastic annual sales rocketed an outstanding 81.38% to $159.94 million dollars from $88.18 marked in 2017. In line, its profit margin (compared to sales) skyrocketed 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 income $-88.87 M USD. When comparing this TTM figures with the last reported annuality, we can review Elastic business evolution since April 2018: Annual sales up to January, compared to lastest yearly report, skyrocketed an extraordinary 50.45%. In contrast, profit margin (net income/sales) depreciated at -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 reported $70.84 M in sales for 2019-Q1, a 11.42% up compared to previous quarter. Reported quarter earnings 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 revenues to same quarter last year, Elastic sales marked and a . Looking back to recent quarterly results, Elastic posted 5 negative 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 stock, it's worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Elastic, 26.47% of all outstanding shares are owned by its staff.

In case of Elastic stock, 70.62% 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 stocks:

ESTC
Market cap$5.2 B
Total shares80.9 M
Float shares54.6 M
  - Institutional holdings (%)70.6%
  - Insider holdings (%)26.5%
Shares in short selling0.0%

Elastic summary

Wednesday, February 26th, 2020
Open$66.49
Close$63.80
Day range$63.32 - $68.59
Previous close$66.15
Session gain-3.55%
Average true range$2.85
50d mov avg$67.87
100d mov avg$71.57
200d mov avg$78.59
Daily pattern
Weekly pattern lt06a

Elastic performance

To measure stock performance is always good to compare with competitors or related stocks. We compared Elastic against in the following table:
Stock3m6m12m
ESTCElastic-19.66%-27.41%-31.52%

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.