Wedbush Reiterates "Outperform" Rating for Elastic (NYSE:ESTC)

Key Points

• Wedbush reaffirmed its “Outperform” rating on Elastic with a $125 price target, implying nearly 50% upside from the prior close. The broader analyst consensus is “Moderate Buy,” with 15 Buy and 13 Hold ratings.
• Elastic exceeded quarterly expectations, reporting $0.70 in EPS versus the $0.58 consensus and $478.1 million in revenue versus $469.8 million expected. Revenue increased 15.2% year over year, while fiscal 2027 EPS guidance was set at $3.29–$3.37.
• Insiders have sold substantial shares recently, including transactions primarily used to cover tax withholding on vested equity awards. Institutional investors remain heavily involved, owning approximately 97% of Elastic’s stock.

Elastic (NYSE:ESTC - Get Free Report)'s stock had its "outperform" rating reaffirmed by Wedbush in a research note issued on Friday, Benzinga reports. They currently have a $125.00 price objective on the stock. Wedbush's price target points to a potential upside of 49.79% from the company's previous close.

A number of other equities research analysts also recently issued reports on the stock. Citigroup boosted their target price on shares of Elastic from $104.00 to $128.00 and gave the company a "buy" rating in a report on Friday, August 28th. Truist Financial increased 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. Robert W. Baird lifted their price target on shares of Elastic from $95.00 to $120.00 and gave the company an "outperform" rating in a report on Friday, August 28th. Oppenheimer boosted their price objective on shares of Elastic from $100.00 to $118.00 and gave the company an "outperform" rating in a research note on Friday, August 28th. Finally, Royal Bank Of Canada upped their price objective on Elastic from $70.00 to $87.00 and gave the stock an "outperform" rating in a report on Friday, August 14th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and thirteen have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $96.52.

Elastic Stock Down 3.6%

Shares of NYSE:ESTC opened at $83.45 on Friday. The stock's 50-day moving average price is $74.28 and its two-hundred day moving average price is $60.91. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 0.44. Elastic has a 12-month low of $42.05 and a 12-month high of $108.00. The firm has a market cap of $8.76 billion, a price-to-earnings ratio of 23.38, a PEG ratio of 8.39 and a beta of 1.03.

Elastic (NYSE:ESTC - Get Free Report) last posted its quarterly earnings results on Thursday, August 27th. The company reported $0.70 EPS for the quarter, beating the consensus estimate 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 negative return on equity of 0.35% and a net margin of 20.84%.The firm's revenue was up 15.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $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. On average, research analysts forecast that Elastic will post 0.56 EPS for the current year.

Insider Buying and Selling

In other news, insider Carolyn Herzog sold 5,485 shares of the company's stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $87.78, for a total value of $481,473.30. Following the completion of the sale, the insider owned 112,954 shares of the company's stock, valued at $9,915,102.12. This represents a 4.63% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Mark Dodds sold 9,673 shares of the stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $87.78, for a total value of $849,095.94. Following the completion of the sale, the executive owned 288,538 shares of the company's stock, valued at approximately $25,327,865.64. This trade represents a 3.24% decrease in their position. 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. Over the last three months, insiders have sold 829,647 shares of company stock valued at $77,267,046. 12.70% of the stock is owned by insiders.

Institutional Trading of Elastic

Hedge funds have recently made changes to their positions in the company. Bessemer Group Inc. acquired a new stake in Elastic during the 1st quarter valued at $25,000. Basecamp Wealth Advisors LLC purchased a new position in Elastic in the 1st quarter valued at about $28,000. Geneos Wealth Management Inc. purchased a new position in Elastic in the 2nd quarter valued at about $31,000. Harbor Investment Advisory LLC acquired a new stake in shares of Elastic during the second quarter valued at about $42,000. Finally, Aster Capital Management DIFC Ltd increased its position in shares of Elastic by 206.1% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company's stock worth $42,000 after acquiring an additional 371 shares during the last quarter. Hedge funds and other institutional investors own 97.03% of the company's stock.

Elastic News Summary

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Short interest declined 39% to 3.87 million shares as of August 31, representing about 4.2% of shares outstanding and only 1.1 days of average trading volume. The reduction suggests less bearish positioning in Elastic stock.
• Positive Sentiment: Elastic’s latest quarterly results beat expectations: earnings reached $0.70 per share versus the $0.58 consensus, while revenue of $478.1 million exceeded estimates of $469.8 million and increased 15.2% year over year. Fiscal 2027 EPS guidance of $3.29 to $3.37 also supports the growth narrative.
• Positive Sentiment: Investors remain focused on Elastic’s integration of artificial intelligence into search, observability and security products. Analysts view AI functionality as a potential driver of enterprise customer retention and additional cloud adoption. Why Is Elastic’s Superscore Not Higher?
• Neutral Sentiment: Analyst sentiment remains favorable overall, with a “Moderate Buy” consensus and an average price target of $94.12. Recent target increases from firms including Oppenheimer, UBS, Stifel and Baird indicate confidence in Elastic’s longer-term outlook, although some analysts still maintain Hold ratings.
• Negative Sentiment: Elastic insiders sold a combined 54,888 shares worth approximately $4.8 million on September 9. The sellers included CEO Ashutosh Kulkarni, CFO Navam Welihinda, CRO Mark Dodds, CAO Jane Bone and Carolyn Herzog. Each sale was disclosed as being used to cover tax withholding obligations from vested equity awards, making the transactions less concerning than discretionary sales but still a potential sentiment headwind.
• Negative Sentiment: Separate reports highlighted additional large sales by CTO Shay Banon following Elastic’s strong advance. Although executives continue to retain substantial holdings, repeated insider selling could make investors more cautious about near-term valuation and momentum.

Elastic Company Profile

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.

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