Elastic (NYSE:ESTC) Shares Gap Up After Analyst Upgrade

Key Points

• Elastic's stock price gapped up after a price target upgrade from Robert W. Baird, raising it from $120 to $130, with shares opening at $91.07 compared to a previous close of $81.55.
• Multiple analysts have issued positive reports, with price target increases from firms like Royal Bank of Canada and UBS Group, reflecting overall strong market sentiment with a consensus rating of Moderate Buy.
• Insider transactions show a significant change in ownership, as executives sold a total of 24,659 shares, indicating a decrease in their positions; however, institutional ownership remains high at 97.03%.

Elastic N.V. (NYSE:ESTC - Get Free Report)'s stock price gapped up before the market opened on Friday after Robert W. Baird raised their price target on the stock from $120.00 to $130.00. The stock had previously closed at $81.55, but opened at $91.07. Robert W. Baird currently has an outperform rating on the stock. Elastic shares last traded at $87.42, with a volume of 1,167,811 shares changing hands.

Several other equities research analysts have also recently issued reports on ESTC. Royal Bank Of Canada lifted their target price on Elastic from $106.00 to $125.00 and gave the stock an "outperform" rating in a report on Friday, August 29th. Wells Fargo & Company initiated coverage on Elastic in a research report on Tuesday, September 30th. They issued an "equal weight" rating and a $90.00 price target for the company. UBS Group lifted their price target on Elastic from $95.00 to $125.00 and gave the stock a "buy" rating in a research report on Friday, August 29th. Cantor Fitzgerald reiterated a "neutral" rating on shares of Elastic in a research report on Friday, August 29th. Finally, Stifel Nicolaus lifted their price target on Elastic from $112.00 to $134.00 and gave the stock a "buy" rating in a research report on Friday, August 29th. One research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $119.00.

Insiders Place Their Bets

In other Elastic news, CRO Mark Eugene Dodds sold 5,037 shares of the firm's stock in a transaction that occurred on Tuesday, September 9th. The shares were sold at an average price of $90.12, for a total value of $453,934.44. Following the transaction, the executive directly owned 167,284 shares of the company's stock, valued at $15,075,634.08. This trade represents a 2.92% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Ashutosh Kulkarni sold 19,622 shares of the firm's stock in a transaction that occurred on Tuesday, September 9th. The stock was sold at an average price of $90.12, for a total transaction of $1,768,334.64. Following the completion of the transaction, the chief executive officer directly owned 457,314 shares in the company, valued at $41,213,137.68. This trade represents a 4.11% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 350,792 shares of company stock worth $30,978,369. 12.70% of the stock is currently owned by insiders.

Institutional Trading of Elastic

Institutional investors have recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp increased its holdings in Elastic by 4.6% in the 1st quarter. Bank of New York Mellon Corp now owns 504,823 shares of the company's stock valued at $44,980,000 after purchasing an additional 22,005 shares during the last quarter. Oppenheimer Asset Management Inc. acquired a new stake in Elastic in the 1st quarter valued at approximately $205,000. Teacher Retirement System of Texas increased its holdings in Elastic by 26.6% in the 1st quarter. Teacher Retirement System of Texas now owns 18,130 shares of the company's stock valued at $1,615,000 after purchasing an additional 3,813 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Elastic by 3.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 429,526 shares of the company's stock worth $38,271,000 after acquiring an additional 12,510 shares in the last quarter. Finally, Principal Financial Group Inc. grew its stake in shares of Elastic by 666.7% in the first quarter. Principal Financial Group Inc. now owns 55,959 shares of the company's stock worth $4,986,000 after acquiring an additional 48,660 shares in the last quarter. Institutional investors and hedge funds own 97.03% of the company's stock.

Elastic Trading Up 7.4%

The company's 50 day simple moving average is $83.27 and its 200 day simple moving average is $84.68. The firm has a market cap of $9.31 billion, a price-to-earnings ratio of -110.33 and a beta of 1.05. The company has a debt-to-equity ratio of 0.59, a current ratio of 2.09 and a quick ratio of 2.09.

Elastic (NYSE:ESTC - Get Free Report) last posted its quarterly earnings results on Thursday, August 28th. The company reported ($0.08) EPS for the quarter, missing the consensus estimate of $0.42 by ($0.50). The business had revenue of $415.29 million during the quarter, compared to analyst estimates of $397.13 million. Elastic had a negative return on equity of 1.68% and a negative net margin of 5.38%.The business's revenue was up 19.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.35 EPS. Elastic has set its FY 2026 guidance at 2.290-2.350 EPS. Q2 2026 guidance at 0.560-0.580 EPS. As a group, research analysts expect that Elastic N.V. will post -0.77 earnings per share for the current fiscal year.

Elastic declared that its board has approved a stock buyback program on Thursday, October 9th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to reacquire shares of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's leadership believes its stock is undervalued.

Elastic Company Profile

Elastic N.V., a data analytics company, delivers solutions designed to run in public or private clouds in multi-cloud environments. It primarily offers Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as performs search, analysis, and visualization on that data.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.