Elastic (NYSE:ESTC) Earns Outperform Rating from Wedbush

Elastic (NYSE:ESTC - Get Free Report)'s stock had its "outperform" rating reissued by stock analysts at Wedbush in a research report issued to clients and investors on Friday, Benzinga reports. They currently have a $125.00 price objective on the stock. Wedbush's price objective indicates a potential upside of 31.11% from the stock's current price.

Other research analysts have also recently issued research reports about the company. Bank of America boosted their price objective on Elastic from $90.00 to $108.00 and gave the stock a "neutral" rating in a research note on Friday, August 28th. Monness Crespi & Hardt upgraded Elastic from a "neutral" rating to a "buy" rating and set a $120.00 price objective on the stock in a research note on Friday. Rosenblatt Securities restated a "buy" rating and set a $83.00 price objective on shares of Elastic in a research note on Wednesday, August 26th. UBS Group boosted their price target on Elastic from $85.00 to $105.00 and gave the stock a "buy" rating in a research note on Friday, August 28th. Finally, Piper Sandler reiterated a "hold" rating on shares of Elastic in a research note on Friday, August 28th. 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 stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $97.92.

Elastic Trading Up 2.4%

Shares of ESTC opened at $95.34 on Friday. The stock's 50-day moving average is $85.85 and its two-hundred day moving average is $65.97. The stock has a market cap of $10.01 billion, a PE ratio of 26.71, a P/E/G ratio of 7.82 and a beta of 1.03. Elastic has a 12 month low of $42.05 and a 12 month high of $108.00. 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 - Get Free Report) last issued its quarterly earnings data on Thursday, August 27th. The company reported $0.70 EPS for the quarter, topping analysts' consensus estimates of $0.58 by $0.12. The company had revenue of $478.11 million for the quarter, compared to analysts' expectations of $469.75 million. Elastic had a negative return on equity of 0.35% and a net margin of 20.84%.The firm's quarterly revenue was up 15.2% on a year-over-year basis. During the same quarter in the previous year, the firm 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. Equities analysts forecast that Elastic will post 0.65 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Steven Schuurman sold 1,500,000 shares of the business's stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $90.13, for a total value of $135,195,000.00. Following 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CTO Shay Banon sold 200,000 shares of the business's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $96.47, for a total value of $19,294,000.00. Following the completion of the transaction, the chief technology officer owned 1,854,978 shares in the company, valued at approximately $178,949,727.66. This trade represents a 9.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 2,585,641 shares of company stock worth $234,551,366. 12.70% of the stock is currently owned by corporate insiders.

Institutional Trading of Elastic

Hedge funds and other institutional investors have recently bought and sold shares of the company. Pictet Asset Management Holding SA increased its holdings in Elastic by 43.2% in the first 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 last quarter. First Trust Advisors LP increased its holdings in Elastic by 516.1% in the first 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 during the last quarter. Temasek Holdings Private Ltd increased its holdings in Elastic by 9.3% in the fourth quarter. Temasek Holdings Private Ltd now owns 1,294,465 shares of the company's stock valued at $97,654,000 after buying an additional 109,608 shares during the last quarter. Panagora Asset Management Inc. increased its holdings in Elastic by 12.5% in the fourth quarter. Panagora Asset Management Inc. now owns 1,031,378 shares of the company's stock valued at $77,807,000 after buying an additional 114,965 shares during the last quarter. Finally, Assenagon Asset Management S.A. increased its holdings in Elastic by 0.6% in the second quarter. Assenagon Asset Management S.A. now owns 905,241 shares of the company's stock valued at $51,617,000 after buying an additional 5,224 shares during the last quarter. 97.03% of the stock is owned by institutional investors.

Elastic News Summary

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Analyst upgrades and price-target increases: 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 while maintaining a “buy” rating. The targets imply substantial upside from recent trading levels and provide a near-term boost to investor confidence. Ticker Report analyst upgrade
• Positive Sentiment: AI product expansion: Elastic announced AlertZero, a team of specialized AI agents designed to support the security-operations lifecycle. It also introduced the private preview of Elastic nightshift AI SRE, an observability agent that investigates technical issues, tests multiple root-cause hypotheses and uses broader telemetry context than traditional rule-based alerts. These launches reinforce Elastic’s strategy of monetizing AI across security and observability. AlertZero announcement Elastic nightshift AI SRE announcement
• Positive Sentiment: Industry recognition: Gartner named Elastic a Leader in its Magic Quadrant for Enterprise AI Search, citing the company’s ability to execute and completeness of vision. Elastic also ranked first or second across the evaluated use cases, supporting its credibility in the growing enterprise AI-search market. Gartner recognition
• Neutral Sentiment: Analyst commentary remains divided: some view Elastic as a potential AI software winner, while others argue that stronger customer commitments have not yet resolved the economics and that competitive friction could limit AI-driven gains. The next AI software winner Customer commitments and economics
• Negative Sentiment: Insider selling: Insider Mark Eugene Dodds sold 10,000 shares, while co-founder Steven Schuurman sold 1.5 million shares. Although insider transactions do not necessarily indicate deteriorating fundamentals, the larger sale may raise concerns about near-term supply and management’s view of valuation. Steven Schuurman insider sale Mark Eugene Dodds 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.