Elastic (NYSE:ESTC) Given “Outperform” Rating at Wedbush

Elastic (NYSE:ESTC)‘s stock had its “outperform” rating restated by stock analysts at Wedbush in a report issued on Friday, Benzinga reports. They presently have a $125.00 target price on the stock. Wedbush’s price target suggests a potential upside of 49.79% from the stock’s previous close.

Other analysts have also recently issued reports about the company. Stifel Nicolaus increased their price target on Elastic from $90.00 to $107.00 and gave the stock a “buy” rating in a research report on Friday, August 28th. Wall Street Zen lowered Elastic from a “buy” rating to a “hold” rating in a research report on Saturday, June 13th. DA Davidson lifted their price target on Elastic from $60.00 to $80.00 and gave the company a “neutral” rating in a report on Wednesday, August 26th. Guggenheim upped their price objective on shares of Elastic from $106.00 to $120.00 and gave the stock a “buy” rating in a report on Friday, August 28th. Finally, Jefferies Financial Group upped their target price on Elastic from $100.00 to $120.00 and gave the stock a “buy” rating in a research report on Friday, August 28th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and thirteen have given a Hold rating to the company. Based on data from MarketBeat.com, Elastic has a consensus rating of “Moderate Buy” and a consensus price target of $96.52.

Elastic Stock Down 3.6%

NYSE:ESTC opened at $83.45 on Friday. The company has a market capitalization of $8.76 billion, a price-to-earnings ratio of 23.38, a price-to-earnings-growth ratio of 8.39 and a beta of 1.03. Elastic has a one year low of $42.05 and a one year high of $108.00. The stock has a 50-day simple moving average of $74.28 and a 200 day simple moving average of $60.91. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.81 and a current ratio of 1.81.

Elastic (NYSE:ESTC) last released its earnings results on Thursday, August 27th. The company reported $0.70 earnings per share for the quarter, beating the consensus estimate of $0.58 by $0.12. Elastic had a net margin of 20.84% and a negative return on equity of 0.35%. The firm had revenue of $478.11 million during the quarter, compared to analyst estimates of $469.75 million. During the same quarter in the previous year, the firm earned $0.60 earnings per share. The firm’s revenue for the quarter was up 15.2% compared to the same quarter last year. Elastic has set its FY 2027 guidance at 3.290-3.370 EPS and its Q2 2027 guidance at 0.800-0.820 EPS. Sell-side analysts predict that Elastic will post 0.56 EPS for the current fiscal year.

Insider Activity

In other news, CTO Shay Banon sold 200,000 shares of Elastic stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $96.47, for a total transaction of $19,294,000.00. Following the completion of the sale, the chief technology officer directly owned 1,854,978 shares in the company, valued at $178,949,727.66. The trade was a 9.73% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Carolyn Herzog sold 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $93.67, for a total transaction of $936,700.00. Following the transaction, the insider directly owned 118,439 shares in the company, valued at approximately $11,094,181.13. The trade was a 7.79% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 829,647 shares of company stock valued at $77,267,046 in the last three months. 12.70% of the stock is currently owned by insiders.

Institutional Trading of Elastic

Several large investors have recently made changes to their positions in ESTC. Bessemer Group Inc. bought a new stake in Elastic during the first quarter worth approximately $25,000. Basecamp Wealth Advisors LLC bought a new position in shares of Elastic in the first quarter worth about $28,000. Geneos Wealth Management Inc. acquired a new stake in Elastic in the 2nd quarter valued at approximately $31,000. Harbor Investment Advisory LLC acquired a new position in shares of Elastic during the second quarter worth approximately $42,000. Finally, Aster Capital Management DIFC Ltd increased its position in Elastic by 206.1% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company’s stock worth $42,000 after acquiring an additional 371 shares during the period. Institutional investors own 97.03% of the company’s stock.

More Elastic News

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Short interest declined 39% to 3.87 million shares as of August 31, representing about 4.2% of shares outstanding and only 1.1 days of average trading volume. The reduction suggests less bearish positioning in Elastic stock.
• Positive Sentiment: Elastic’s latest quarterly results beat expectations: earnings reached $0.70 per share versus the $0.58 consensus, while revenue of $478.1 million exceeded estimates of $469.8 million and increased 15.2% year over year. Fiscal 2027 EPS guidance of $3.29 to $3.37 also supports the growth narrative.
• Positive Sentiment: Investors remain focused on Elastic’s integration of artificial intelligence into search, observability and security products. Analysts view AI functionality as a potential driver of enterprise customer retention and additional cloud adoption. Why Is Elastic’s Superscore Not Higher?
• Neutral Sentiment: Analyst sentiment remains favorable overall, with a “Moderate Buy” consensus and an average price target of $94.12. Recent target increases from firms including Oppenheimer, UBS, Stifel and Baird indicate confidence in Elastic’s longer-term outlook, although some analysts still maintain Hold ratings.
• Negative Sentiment: Elastic insiders sold a combined 54,888 shares worth approximately $4.8 million on September 9. The sellers included CEO Ashutosh Kulkarni, CFO Navam Welihinda, CRO Mark Dodds, CAO Jane Bone and Carolyn Herzog. Each sale was disclosed as being used to cover tax withholding obligations from vested equity awards, making the transactions less concerning than discretionary sales but still a potential sentiment headwind.
• Negative Sentiment: Separate reports highlighted additional large sales by CTO Shay Banon following Elastic’s strong advance. Although executives continue to retain substantial holdings, repeated insider selling could make investors more cautious about near-term valuation and momentum.

Elastic Company Profile

Elastic N.V. develops search, observability and security software for organizations that need to find, analyze and act on data. Its core technology, Elasticsearch, is a distributed search and analytics engine that can process structured and unstructured information from applications, websites, logs and other sources.

The company offers its platform through Elastic Cloud, a managed cloud service available across major public-cloud environments, as well as through self-managed deployments.