Elastic’s (ESTC) “Outperform” Rating Reiterated at Wedbush

Wedbush reissued their outperform rating on shares of Elastic (NYSE:ESTC) in a research report sent to investors on Friday,Benzinga reports. They currently have a $125.00 target price on the stock.

A number of other equities analysts have also issued reports on the stock. Monness Crespi & Hardt upgraded shares of Elastic from a “neutral” rating to a “buy” rating and set a $120.00 target price for the company in a research report on Friday. Zacks Research upgraded shares of Elastic from a “hold” rating to a “strong-buy” rating in a research report on Friday, August 28th. Needham & Company LLC restated a “hold” rating on shares of Elastic in a research report on Friday. Royal Bank Of Canada upped their price target on shares of Elastic from $70.00 to $87.00 and gave the stock an “outperform” rating in a research note on Friday, August 14th. Finally, Guggenheim increased their price objective on shares of Elastic from $106.00 to $120.00 and gave the company a “buy” rating in a report on Friday, August 28th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat, Elastic has a consensus rating of “Moderate Buy” and an average target price of $97.92.

Elastic Trading Down 0.1%

Shares of ESTC stock opened at $98.18 on Friday. Elastic has a 1 year low of $42.05 and a 1 year high of $108.00. The firm has a market capitalization of $10.31 billion, a PE ratio of 27.50, a price-to-earnings-growth ratio of 8.25 and a beta of 1.03. The stock has a fifty day moving average of $86.50 and a two-hundred day moving average of $66.29. 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 issued its quarterly earnings results on Thursday, August 27th. The company reported $0.70 EPS for the quarter, beating analysts’ consensus estimates of $0.58 by $0.12. Elastic had a negative return on equity of 0.35% and a net margin of 20.84%. The company had revenue of $478.11 million for the quarter, compared to analyst estimates of $469.75 million. During the same period last year, the company earned $0.60 earnings per share. The company’s quarterly revenue 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. As a group, research analysts expect that Elastic will post 0.65 EPS for the current year.

Insider Buying and Selling

In other news, insider Carolyn Herzog sold 5,485 shares of the company’s stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $87.78, for a total value of $481,473.30. Following the completion of the sale, the insider owned 112,954 shares in the company, valued at $9,915,102.12. This represents a 4.63% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Jane Bone sold 1,542 shares of the firm’s stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $87.78, for a total value of $135,356.76. Following the transaction, the chief accounting officer directly owned 47,697 shares of the company’s stock, valued at $4,186,842.66. This represents a 3.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 2,585,641 shares of company stock worth $234,551,366. 12.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Elastic

Several hedge funds and other institutional investors have recently bought and sold shares of ESTC. Amundi boosted its position in shares of Elastic by 37.2% during the 1st quarter. Amundi now owns 296,604 shares of the company’s stock valued at $14,827,000 after purchasing an additional 80,441 shares in the last quarter. Engineers Gate Manager LP raised its holdings in shares of Elastic by 43.7% in the 2nd quarter. Engineers Gate Manager LP now owns 129,697 shares of the company’s stock worth $7,395,000 after purchasing an additional 39,468 shares in the last quarter. California State Teachers Retirement System raised its holdings in shares of Elastic by 21.8% in the 1st quarter. California State Teachers Retirement System now owns 104,579 shares of the company’s stock worth $5,228,000 after purchasing an additional 18,716 shares in the last quarter. Temasek Holdings Private Ltd raised its holdings in shares of Elastic by 9.3% in the 4th quarter. Temasek Holdings Private Ltd now owns 1,294,465 shares of the company’s stock worth $97,654,000 after purchasing an additional 109,608 shares in the last quarter. Finally, Kettle Hill Capital Management LLC acquired a new stake in Elastic during the fourth quarter valued at approximately $29,690,000. 97.03% of the stock is currently owned by institutional investors.

Key Headlines Impacting Elastic

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Analyst sentiment improved: Monness Crespi & Hardt upgraded Elastic from “neutral” to “buy” and set a $120 price target. Stifel Nicolaus also raised its target from $107 to $120 and assigned a “buy” rating, while Wedbush reaffirmed its “outperform” rating with a $125 target. The targets imply meaningful upside from the stock’s recent trading level.
• Positive Sentiment: AI observability product launched: Elastic introduced a private preview of Elastic nightshift AI SRE, an AI agent designed to investigate incidents across an organization’s technology stack. It uses broad telemetry and contextual data, tests multiple root-cause hypotheses, and explains its findings, potentially improving the value of Elastic’s Observability platform. Elastic Introduces Elastic nightshift AI SRE
• Positive Sentiment: Security AI expansion: Elastic announced AlertZero, a team of specialized AI agents supporting the security operations lifecycle. The launch reinforces the company’s strategy of monetizing AI across observability and cybersecurity use cases. Elastic Announces AlertZero
• Neutral Sentiment: Recent commentary highlights Elastic’s potential to benefit from AI software demand, but questions remain about customer commitments, the economics of those contracts, and the time required for AI initiatives to translate into sustained profits.
• Negative Sentiment: Insider selling may weigh on sentiment: Insider Mark Eugene Dodds sold 10,000 shares, while former CEO Steven Schuurman sold 1.5 million shares. These transactions do not necessarily indicate a change in business outlook, but their size could raise concerns about insider confidence or create additional selling pressure. Elastic insider Steven Schuurman sells shares
• Negative Sentiment: One analysis argues that AI tailwinds may not fully offset competitive pressure, underscoring execution and rivalry risks in Elastic’s markets.

Elastic Company Profile

Elastic N.V. (NYSE: ESTC) develops search, observability and security software for organizations that need to collect, analyze and act on large volumes of data. Its platform helps users search structured and unstructured information, monitor applications and infrastructure, detect security threats and build artificial intelligence-powered experiences.

The company’s principal offerings include Elasticsearch, its distributed search and analytics engine; Kibana, a visualization and data exploration interface; and Elastic Cloud, a managed cloud service for deploying Elastic products.