Elastic (NYSE:ESTC) Research Coverage Started at Wedbush

Wedbush began coverage on shares of Elastic (NYSE:ESTC) in a report published on Friday morning, Marketbeat Ratings reports. The brokerage issued an outperform rating and a $125.00 target price on the stock.

A number of other equities analysts have also recently issued reports on ESTC. Wolfe Research set a $55.00 price objective on shares of Elastic in a research note on Friday, May 29th. Guggenheim upped their target price on shares of Elastic from $106.00 to $120.00 and gave the company a “buy” rating in a research report on Friday, August 28th. Barclays increased their price target on Elastic from $68.00 to $94.00 and gave the company an “overweight” rating in a research note on Monday, August 24th. Bank of America raised their price target on Elastic from $90.00 to $108.00 and gave the stock a “neutral” rating in a research report on Friday, August 28th. Finally, Weiss Ratings raised Elastic from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and thirteen have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Elastic has a consensus rating of “Moderate Buy” and an average price target of $96.52.

Elastic Stock Performance

NYSE ESTC opened at $83.44 on Friday. Elastic has a twelve month low of $42.05 and a twelve month high of $108.00. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of 0.44. The stock has a market cap of $8.76 billion, a P/E ratio of 23.37, a PEG ratio of 7.08 and a beta of 1.03. The company’s 50-day simple moving average is $74.79 and its 200 day simple moving average is $61.13.

Elastic (NYSE:ESTC) last released its quarterly earnings data on Thursday, August 27th. The company reported $0.70 earnings per share (EPS) for the quarter, topping the consensus estimate 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 analyst estimates of $469.75 million. During the same period in the prior year, the company posted $0.60 earnings per share. The business’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. As a group, research analysts forecast that Elastic will post 0.64 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Ashutosh Kulkarni sold 29,227 shares of Elastic stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $87.78, for a total value of $2,565,546.06. Following the sale, the chief executive officer owned 599,525 shares of the company’s stock, valued at approximately $52,626,304.50. The trade was a 4.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Carolyn Herzog sold 5,485 shares of the business’s stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $87.78, for a total transaction of $481,473.30. Following the transaction, the insider owned 112,954 shares in the company, valued at approximately $9,915,102.12. The trade was a 4.63% decrease in their ownership of the stock. 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. Insiders sold 991,434 shares of company stock valued at $91,303,286 over the last ninety days. Insiders own 12.70% of the company’s stock.

Institutional Trading of Elastic

Several hedge funds and other institutional investors have recently bought and sold shares of ESTC. AQR Capital Management LLC lifted its position in Elastic by 153.4% during the fourth quarter. AQR Capital Management LLC now owns 7,545,081 shares of the company’s stock worth $569,201,000 after purchasing an additional 4,567,720 shares during the period. Pictet Asset Management Holding SA increased its holdings in Elastic by 43.2% in the 1st quarter. Pictet Asset Management Holding SA now owns 6,492,717 shares of the company’s stock valued at $324,550,000 after buying an additional 1,958,219 shares during the period. California State Teachers Retirement System increased its holdings in Elastic by 5,082.4% in the 2nd quarter. California State Teachers Retirement System now owns 5,419,694 shares of the company’s stock valued at $309,031,000 after buying an additional 5,315,115 shares during the period. FIL Ltd raised its position in shares of Elastic by 36.9% in the 4th quarter. FIL Ltd now owns 3,628,748 shares of the company’s stock valued at $273,753,000 after buying an additional 977,578 shares in the last quarter. Finally, First Trust Advisors LP raised its position in shares of Elastic by 516.1% in the 1st quarter. First Trust Advisors LP now owns 2,627,636 shares of the company’s stock valued at $131,356,000 after buying an additional 2,201,140 shares in 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: Elastic introduced Elasticsearch Vector Database, a serverless offering designed for large-scale vector search and artificial-intelligence applications. The product is intended to simplify deployment, support hundreds of billions of vectors and strengthen Elastic’s position in the growing AI-search market. Elastic Introduces Serverless Vector Database
• Positive Sentiment: Wedbush began coverage with an “outperform” rating and a $125 price target, implying substantial upside from the recent trading level. The recommendation reflects optimism about Elastic’s AI, search and cloud growth opportunities.
• Positive Sentiment: Short interest dropped 39% between mid-August and August 31 to 3.87 million shares, or roughly 4.2% of shares outstanding. Reduced bearish positioning and only 1.1 days of short-interest coverage could provide technical support and limit short-selling pressure.
• Neutral Sentiment: Elastic’s latest quarterly results were strong, with $0.70 in adjusted EPS versus the $0.58 consensus and revenue of $478.1 million versus $469.8 million expected. Revenue grew 15.2% year over year, and fiscal 2027 EPS guidance was set at $3.29 to $3.37; however, these results were reported previously and may already be reflected in the stock’s valuation.
• Negative Sentiment: Several executives, including CEO Ashutosh Kulkarni, CFO Navam Welihinda, CRO Mark Dodds and CAO Jane Bone, sold shares on September 9. The sales totaled about 54,888 shares and $4.8 million, but were made to cover tax withholding on vested equity awards, making them less concerning than discretionary selling.
• Negative Sentiment: Repeated insider selling following a strong rally could still weigh on sentiment, particularly as investors assess whether the company’s AI-driven growth can justify its elevated valuation.

About Elastic

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.