Elastic N.V. (NYSE:ESTC) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Elastic has a “Moderate Buy” consensus among 29 analysts, with 15 buy, 13 hold and one strong-buy rating. The average 12-month price target is $96.52, while recent targets range as high as $125.
• Elastic reported quarterly adjusted EPS of $0.70 and revenue of $478.1 million, beating consensus estimates, with revenue up 15.2% year over year. Its new serverless Elasticsearch Vector Database is aimed at large-scale AI and vector-search applications.
• Insider selling remains a sentiment risk: insiders sold nearly 1 million shares worth approximately $91.3 million in the last quarter, although some recent sales were tied to tax withholding on vested equity awards.

Elastic N.V. (NYSE:ESTC - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the twenty-nine ratings firms that are covering the company, Marketbeat.com reports. Thirteen equities research analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has given a strong buy rating to the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $96.52.

ESTC has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. increased their price objective on Elastic from $93.00 to $105.00 and gave the company an "overweight" rating in a report on Friday, August 28th. Stifel Nicolaus boosted their target price on Elastic from $90.00 to $107.00 and gave the stock a "buy" rating in a research note on Friday, August 28th. Barclays upped their price target on Elastic from $68.00 to $94.00 and gave the company an "overweight" rating in a report on Monday, August 24th. Wedbush began coverage on shares of Elastic in a research note on Friday. They issued an "outperform" rating and a $125.00 price target on the stock. Finally, Jefferies Financial Group raised their price objective on shares of Elastic from $100.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, August 28th.

Elastic News Roundup

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.

Elastic Stock Performance

Shares of ESTC stock opened at $83.44 on Friday. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 0.44. The firm has a fifty day moving average price of $74.79 and a 200 day moving average price of $61.07. The company has a market cap of $8.76 billion, a P/E ratio of 23.37, a PEG ratio of 8.08 and a beta of 1.03. Elastic has a 12 month low of $42.05 and a 12 month high of $108.00.

Elastic (NYSE:ESTC - Get Free Report) last posted its quarterly earnings results on Thursday, August 27th. The company reported $0.70 earnings per share for the quarter, beating 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%.Elastic's quarterly revenue was up 15.2% on a year-over-year basis. During the same period last year, the firm earned $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 0.64 earnings per share for the current fiscal year.

Insider Activity at Elastic

In related news, CTO Shay Banon sold 200,000 shares of the business's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $96.47, for a total value of $19,294,000.00. Following the completion of the sale, the chief technology officer directly owned 1,854,978 shares of the company's stock, valued at $178,949,727.66. The trade was a 9.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Carolyn Herzog sold 10,000 shares of the business's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $93.67, for a total transaction of $936,700.00. Following the completion of the sale, the insider directly owned 118,439 shares of the company's stock, valued at approximately $11,094,181.13. This trade represents a 7.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 991,434 shares of company stock worth $91,303,286. Corporate insiders own 12.70% of the company's stock.

Institutional Trading of Elastic

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

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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