Elastic (NYSE:ESTC) Price Target Raised to $75.00

Key Points

• Morgan Stanley raised Elastic’s price target to $75 from $66 while maintaining an “equal weight” rating; the new target implies 24.73% downside from the stock’s reported price.
• Elastic exceeded quarterly expectations, reporting adjusted EPS of $0.70 versus $0.58 expected and revenue of $478.1 million, up 15.2% year over year. Its fiscal 2027 EPS guidance of $3.29-$3.37 also came in well above consensus.
• Shares surged 19% to $99.64, while analysts overall remain moderately bullish, with 17 Buy ratings, 13 Holds and an average price target of $91.41. Recent insider selling was attributed to tax obligations tied to equity vesting.

Elastic (NYSE:ESTC - Get Free Report) had its target price boosted by analysts at Morgan Stanley from $66.00 to $75.00 in a research report issued on Friday,Benzinga reports. The firm presently has an "equal weight" rating on the stock. Morgan Stanley's target price points to a potential downside of 24.73% from the stock's current price.

A number of other research analysts also recently commented on the stock. Truist Financial raised their target price on shares of Elastic from $80.00 to $100.00 and gave the company a "buy" rating in a research report on Thursday, August 20th. Scotiabank lowered their price target on shares of Elastic from $61.00 to $58.00 and set a "sector perform" rating for the company in a research report on Friday, May 29th. Zacks Research upgraded shares of Elastic from a "strong sell" rating to a "hold" rating in a research note on Friday, June 26th. UBS Group reiterated a "buy" rating on shares of Elastic in a research note on Friday. Finally, TD Cowen boosted their price objective on shares of Elastic from $55.00 to $70.00 and gave the stock a "hold" rating in a research note on Tuesday. Seventeen investment analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the company. According to data from MarketBeat, Elastic has an average rating of "Moderate Buy" and an average price target of $91.41.

Elastic Trading Up 19.0%

NYSE ESTC traded up $15.90 during trading on Friday, hitting $99.64. The stock had a trading volume of 3,376,011 shares, compared to its average volume of 2,083,755. The stock has a 50 day simple moving average of $67.44 and a 200 day simple moving average of $58.76. Elastic has a one year low of $42.05 and a one year high of $108.00. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.68 and a current ratio of 1.68. The stock has a market capitalization of $10.36 billion, a price-to-earnings ratio of 28.47, a P/E/G ratio of 19.77 and a beta of 0.98.

Elastic (NYSE:ESTC - Get Free Report) last issued its earnings results on Thursday, August 27th. The company reported $0.70 EPS for the quarter, topping analysts' consensus estimates of $0.58 by $0.12. The business had revenue of $478.11 million for the quarter, compared to analyst estimates of $469.75 million. Elastic had a net margin of 21.14% and a negative return on equity of 1.82%. The company's quarterly revenue was up 15.2% compared to the same quarter last year. During the same period last year, the company posted $0.60 earnings per share. 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 0.24 earnings per share for the current year.

Insiders Place Their Bets

In other Elastic news, insider Ken Exner sold 18,449 shares of the stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total transaction of $1,118,193.89. Following the completion of the sale, the insider directly owned 360,037 shares of the company's stock, valued at approximately $21,821,842.57. This represents a 4.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Navam Welihinda sold 12,961 shares of the firm's stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total transaction of $785,566.21. Following the completion of the sale, the chief financial officer owned 209,254 shares in the company, valued at $12,682,884.94. This represents a 5.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 110,099 shares of company stock valued at $6,673,100 in the last three months. 12.70% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Elastic

Several institutional investors have recently bought and sold shares of ESTC. AQR Capital Management LLC lifted its holdings in shares of Elastic by 153.4% during the 4th quarter. AQR Capital Management LLC now owns 7,545,081 shares of the company's stock valued at $569,201,000 after purchasing an additional 4,567,720 shares during the last quarter. Pictet Asset Management Holding SA boosted its position in shares of Elastic by 43.2% in the 1st quarter. Pictet Asset Management Holding SA now owns 6,492,717 shares of the company's stock worth $324,550,000 after purchasing an additional 1,958,219 shares in the last quarter. California State Teachers Retirement System grew its stake in Elastic by 5,082.4% during the 2nd quarter. California State Teachers Retirement System now owns 5,419,694 shares of the company's stock worth $309,031,000 after buying an additional 5,315,115 shares during the last quarter. FIL Ltd grew its stake in Elastic by 36.9% during the 4th quarter. FIL Ltd now owns 3,628,748 shares of the company's stock worth $273,753,000 after buying an additional 977,578 shares during the last quarter. Finally, First Trust Advisors LP increased its position in Elastic by 516.1% during 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. 97.03% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Elastic

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Quarterly beat: Elastic reported adjusted EPS of $0.70, exceeding the $0.58 consensus estimate, while revenue rose 15.2% year over year to $478.1 million, ahead of the approximately $469.8 million analyst forecast. Elastic quarterly earnings report
• Positive Sentiment: Raised outlook: Fiscal 2027 EPS guidance of $3.29-$3.37 is substantially above the $2.64 consensus estimate. Second-quarter EPS guidance of $0.80-$0.82 also exceeds expectations of $0.66, while projected revenue of $486-$487 million is above the $483.2 million consensus. The guidance upgrade is a major reason investors are reassessing the company’s growth and profitability outlook. Elastic fiscal 2027 results
• Positive Sentiment: Analyst support: Robert W. Baird raised its price target from $95 to $120 and assigned an “outperform” rating, implying meaningful upside from the current trading level. Rosenblatt Securities also reaffirmed its “buy” rating. Benzinga analyst update
• Neutral Sentiment: DA Davidson increased its price target from $60 to $80 but maintained a “neutral” rating. This reflects improving expectations while signaling that valuation and execution risks remain after the sharp rally. DA Davidson raises Elastic price target
• Negative Sentiment: Quiver Quantitative data shows 14 insider sales and no insider purchases over the past six months. Although these transactions may reflect scheduled or compensation-related selling, the absence of insider buying could temper enthusiasm. The stock also trades near the upper portion of its 52-week range, increasing sensitivity to any future guidance or execution disappointment.

About Elastic

Elastic N.V. operates as a search and analytics company, offering a suite of open source and subscription-based solutions for search, observability and security use cases. Its flagship product, Elasticsearch, enables fast and scalable full-text search and analytics across large volumes of structured and unstructured data. Complementary tools such as Kibana provide visualization capabilities, while Beats and Logstash serve as lightweight data shippers and data processing pipelines, respectively.

The company was founded in 2012 by Shay Banon, who serves as chief technology officer, and Steven Schuurman.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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