Elastic’s (ESTC) Outperform Rating Reaffirmed at Wedbush

Elastic (NYSE:ESTC)‘s stock had its “outperform” rating restated by stock analysts at Wedbush in a research note issued on Friday, Benzinga reports. They currently have a $125.00 target price on the stock. Wedbush’s price objective would suggest a potential upside of 27.42% from the stock’s previous close.

Several other equities research analysts also recently issued reports on the stock. Bank of America raised their target price on shares of Elastic from $90.00 to $108.00 and gave the company a “neutral” rating in a research note on Friday, August 28th. TD Cowen raised their target price on shares of Elastic from $55.00 to $70.00 and gave the stock a “hold” rating in a report on Tuesday, August 25th. Jefferies Financial Group lifted their price target on shares of Elastic from $100.00 to $120.00 and gave the company a “buy” rating in a research report on Friday, August 28th. DA Davidson lifted their price objective on shares of Elastic from $60.00 to $80.00 and gave the company a “neutral” rating in a research note on Wednesday, August 26th. Finally, Wall Street Zen cut shares of Elastic from a “buy” rating to a “hold” rating in a research note on Saturday, June 13th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $97.92.

Elastic Trading Up 3.0%

Shares of ESTC traded up $2.84 during trading hours on Friday, reaching $98.10. The stock had a trading volume of 821,181 shares, compared to its average volume of 2,131,719. The firm has a 50-day moving average of $85.85 and a 200 day moving average of $65.97. The company has a market cap of $10.30 billion, a P/E ratio of 27.43, a P/E/G ratio of 7.82 and a beta of 1.03. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of 0.44. Elastic has a 52 week low of $42.05 and a 52 week high of $108.00.

Elastic (NYSE:ESTC) last released its earnings results on Thursday, August 27th. The company reported $0.70 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $478.11 million during the quarter, compared to analysts’ expectations of $469.75 million. During the same quarter in the prior year, the company earned $0.60 EPS. The company’s revenue was up 15.2% on a year-over-year basis. Elastic has set its FY 2027 guidance at 3.290-3.370 EPS and its Q2 2027 guidance at 0.800-0.820 EPS. On average, sell-side analysts expect that Elastic will post 0.65 earnings per share for the current fiscal year.

Insider Activity at Elastic

In related news, CTO Shay Banon sold 200,000 shares of the business’s stock in a transaction on Monday, August 31st. The shares were sold at an average price of $96.47, for a total value of $19,294,000.00. Following the transaction, the chief technology officer owned 1,854,978 shares in the company, valued at $178,949,727.66. The trade was a 9.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Steven Schuurman sold 1,500,000 shares of the business’s stock in a transaction on Monday, October 5th. The shares were sold at an average price of $90.13, for a total transaction of $135,195,000.00. Following the completion of the transaction, the director owned 4,504,600 shares in the company, valued at approximately $405,999,598. The trade was a 24.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 2,585,641 shares of company stock worth $234,551,366 over the last quarter. Company insiders own 12.70% of the company’s stock.

Hedge Funds Weigh In On Elastic

Several institutional investors have recently made changes to their positions in ESTC. 180 Wealth Advisors LLC increased its holdings in shares of Elastic by 4.6% in the 2nd quarter. 180 Wealth Advisors LLC now owns 6,027 shares of the company’s stock worth $344,000 after buying an additional 263 shares during the last quarter. HB Wealth Management LLC increased its holdings in shares of Elastic by 11.2% in the 1st quarter. HB Wealth Management LLC now owns 4,363 shares of the company’s stock worth $218,000 after buying an additional 441 shares during the last quarter. Bessemer Group Inc. bought a new position in shares of Elastic in the 1st quarter worth $25,000. Basecamp Wealth Advisors LLC bought a new position in shares of Elastic in the 1st quarter worth $28,000. Finally, GAMMA Investing LLC increased its holdings in shares of Elastic by 61.9% in the 3rd quarter. GAMMA Investing LLC now owns 1,470 shares of the company’s stock worth $135,000 after buying an additional 562 shares during the last quarter. Institutional investors and hedge funds own 97.03% of the company’s stock.

Key Stories Impacting Elastic

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Monness Crespi & Hardt upgraded Elastic from “neutral” to “buy” and set a $120 price target, implying more than 23% potential upside. Tickerreport article
• Positive Sentiment: Stifel Nicolaus raised its price target from $107 to $120 and maintained a “buy” rating, citing further upside for the shares. Benzinga article
• Positive Sentiment: Wedbush reaffirmed its “outperform” rating and raised or maintained a $125 target, representing approximately 28% potential upside. Benzinga article
• Positive Sentiment: Elastic launched nightshift AI SRE, an AI agent for Elastic Observability that continuously investigates issues across an organization’s technology stack, tests root-cause theories, and uses broader context than conventional rule-based alerts. Elastic nightshift AI SRE announcement
• Positive Sentiment: The company also announced AlertZero, a team of specialized AI agents designed to support the security operations lifecycle, broadening Elastic’s AI security offerings. AlertZero announcement
• Neutral Sentiment: Analyst commentary is mixed: some investors view Elastic as a potential AI software winner, while other analysis argues that stronger customer commitments have not yet resolved the company’s economics and that competitive pressure could limit AI-driven gains. Elastic AI software analysis
• Negative Sentiment: Insiders reported sizable sales, including Steven Schuurman’s sale of 1.5 million shares and Mark Eugene Dodds’ sale of 10,000 shares. Such transactions can weigh on sentiment, though they do not necessarily indicate deteriorating fundamentals. Steven Schuurman insider sale

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.