Are Elastic N.V. (ESTC) Shares Headed For A Pullback?

On Tuesday, shares of Elastic N.V. (NYSE:ESTC) marked $70.67 per share versus a previous $68.69 closing price. With having a 2.88% gain, an insight into the fundamental values of Elastic N.V., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. ESTC showed a rise of 9.91% within its YTD performance, with highs and lows between $60.10 – $104.10 during the period of 52 weeks, compared to the simple moving average of -12.47% in the period of the last 200 days.

Jefferies equity researchers changed the status of Elastic N.V. (NYSE: ESTC) shares from “Hold” to a “Buy” rating in the report published on January 10th, 2020. Other analysts, including Canaccord Genuity, also published their reports on ESTC shares. Canaccord Genuity repeated the rating from the previous report, marking ESTC under “Buy” rating, in the report published on November 18th, 2019. Additionally, ESTC shares got another “Buy” rating from Canaccord Genuity. On the other hand, Monness Crespi & Hardt Reiterated the “Buy” rating for ESTC shares, as published in the report on August 29th, 2019. Canaccord Genuity seems to be going bullish on the price of ESTC shares, based on the price prediction for ESTC, indicating that the shares will jump from $85 to $90, giving the shares “Hold” rating based on their report from August 29th, 2019. Another “Overweight” rating came from Barclays, providing a prediction for $90 price target according to the report published in August 29th, 2019.

Elastic N.V. (ESTC) Analysis

The present dividend yield for ESTC owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period. In addition, the growth of sales from quarter to quarter is recording 59.00%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Elastic N.V. (ESTC) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of -48.40% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 1.60 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while ESTC is currently recording an average of 1.46M in volumes. The volatility of the stock on monthly basis is set at 2.97%, while the weekly volatility levels are marked at 3.81%with 1.83% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $97.75, indicating growth from the present price of $70.67, which can represent yet another valuable research and analysis points that can help you decide whether to invest in ESTC or pass.

What to Look for When Analyzing Elastic N.V. Shares?

Elastic N.V. (ESTC) is based in the USA and it represents one of the well-known company operating with Technology sector. If you wish to compare ESTC shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of for Elastic N.V., while the value can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value -1.99 is supported by the yearly ESP growth of -150.80%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 11.70%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 79.10% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in ESTC Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in ESTC in the recent period. That is how Fidelity now has an increase position in ESTC by 8.12% in the first quarter, owning 5.33 million shares of ESTC stocks, with the value of $342.51 million after the purchase of an additional 400,059 shares during the last quarter. In the meanwhile, J.O. Hambro Capital Management Lt also increased their stake in ESTC shares changed — in the first quarter, which means that the company now owns 4.15 million shares of company, all valued at $266.85 million after the acquisition of additional 4,150,000 shares during the last quarter.

The Vanguard Group, Inc. acquired a new position in Elastic N.V. during the first quarter, with the value of $194.48 million, and Sylebra HK Co. Ltd. increased their stake in the company’s shares by 67.11% in the first quarter, now owning 1,210,829 shares valued at $193.87 million after the acquisition of the additional 3.02 million shares during the last quarter. In the end, BlackRock Fund Advisors increased their position by 6.77% during the first quarter, now owning 1.54 million ESTC shares, now holding the value of $99.09 million in ESTC with the purchase of the additional 562,683 shares during the period of the last quarter. At the present, 79.10% of ESTC shares are in the ownership of institutional investors.