Elastic’s (ESTC) Outperform Rating Reaffirmed at Wedbush

Elastic (NYSE:ESTC)‘s stock had its “outperform” rating reaffirmed by research analysts at Wedbush in a research note issued to investors on Friday, Benzinga reports. They currently have a $125.00 target price on the stock. Wedbush’s price objective would indicate a potential upside of 27.33% from the company’s previous close.

Other analysts have also issued reports about the stock. Scotiabank lifted their price target on shares of Elastic from $58.00 to $84.00 and gave the stock a “sector perform” rating in a research note on Friday, August 28th. Canaccord Genuity Group lifted their price target on shares of Elastic from $80.00 to $120.00 and gave the stock a “buy” rating in a research note on Friday, August 28th. Truist Financial lifted their price target on shares of Elastic from $80.00 to $100.00 and gave the stock a “buy” rating in a research note on Thursday, August 20th. Cantor Fitzgerald reiterated a “neutral” rating and issued a $100.00 price target on shares of Elastic in a research note on Wednesday, September 23rd. Finally, Jefferies Financial Group lifted their price target on shares of Elastic from $100.00 to $120.00 and gave the stock a “buy” rating in a research note on Friday, August 28th. One 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 stock. According to data from MarketBeat.com, Elastic has a consensus rating of “Moderate Buy” and an average target price of $97.92.

Elastic Stock Up 3.1%

NYSE ESTC traded up $2.91 during trading hours on Friday, reaching $98.17. 690,176 shares of the company’s stock traded hands, compared to its average volume of 2,131,231. Elastic has a 52-week low of $42.05 and a 52-week high of $108.00. The firm has a market cap of $10.31 billion, a PE ratio of 27.50, a PEG ratio of 7.82 and a beta of 1.03. The firm has a 50-day simple moving average of $85.85 and a 200 day simple moving average of $65.97. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.81 and a quick ratio of 1.81.

Elastic (NYSE:ESTC) last issued its quarterly earnings results on Thursday, August 27th. The company reported $0.70 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.58 by $0.12. The company had revenue of $478.11 million during the quarter, compared to analysts’ expectations of $469.75 million. Elastic had a net margin of 20.84% and a negative return on equity of 0.35%. Elastic’s revenue was up 15.2% on a year-over-year basis. During the same period last year, the company posted $0.60 EPS. 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 anticipate that Elastic will post 0.65 EPS for the current fiscal year.

Insider Activity at Elastic

In related news, CTO Shay Banon sold 84,207 shares of the business’s stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $84.64, for a total transaction of $7,127,280.48. Following the completion of the sale, the chief technology officer directly owned 3,910,563 shares in the company, valued at approximately $330,990,052.32. The trade was a 2.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO Jane Bone sold 1,542 shares of the business’s stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $87.78, for a total transaction of $135,356.76. Following the sale, the chief accounting officer owned 47,697 shares of the company’s stock, valued at $4,186,842.66. This trade represents a 3.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 2,585,641 shares of company stock valued at $234,551,366 in the last three months. Corporate insiders own 12.70% of the company’s stock.

Hedge Funds Weigh In On Elastic

Several large investors have recently added to or reduced their stakes in ESTC. Bessemer Group Inc. purchased a new position in Elastic during the first quarter valued at approximately $25,000. Basecamp Wealth Advisors LLC purchased a new position in Elastic during the first quarter valued at approximately $28,000. Harbor Investment Advisory LLC purchased a new position in Elastic during the second quarter valued at approximately $42,000. Root Financial Partners LLC lifted its holdings in Elastic by 2,976.7% during the first quarter. Root Financial Partners LLC now owns 923 shares of the company’s stock valued at $46,000 after purchasing an additional 893 shares in the last quarter. Finally, Summit Securities Group LLC purchased a new position in Elastic during the first quarter valued at approximately $79,000. Hedge funds and other institutional investors 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

About Elastic

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.