Elastic (NYSE:ESTC) Shares Gap Up - What's Next?

Key Points

• Elastic shares gapped up from $77.58 to $82.41 before trading, closing at $83.05 with a trading volume of 605,982 shares.
• Wall Street analysts have lowered target prices for Elastic, with an average price target now at $110.60, while 20 analysts rate it as a Buy.
• In its last quarterly report, Elastic reported an EPS of $0.47, surpassing expectations, with a revenue increase of 15.9% year-over-year to $388.43 million.

Shares of Elastic N.V. (NYSE:ESTC - Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $77.58, but opened at $82.41. Elastic shares last traded at $83.05, with a volume of 605,982 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on ESTC shares. Royal Bank Of Canada reduced their target price on shares of Elastic from $119.00 to $115.00 and set an "outperform" rating for the company in a report on Friday, May 30th. Piper Sandler dropped their target price on Elastic from $135.00 to $120.00 and set an "overweight" rating for the company in a research report on Friday, May 30th. Oppenheimer decreased their price objective on Elastic from $120.00 to $100.00 and set an "outperform" rating for the company in a report on Monday, July 21st. Rosenblatt Securities dropped their price target on Elastic from $140.00 to $130.00 and set a "buy" rating for the company in a research report on Friday, May 30th. Finally, TD Securities decreased their price target on Elastic from $125.00 to $105.00 and set a "hold" rating on the stock in a research note on Wednesday, May 21st. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $110.60.

Elastic Stock Performance

The company has a market cap of $8.75 billion, a P/E ratio of -78.90 and a beta of 1.07. The firm has a 50 day moving average price of $82.58 and a 200-day moving average price of $88.52. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.92 and a current ratio of 1.92.

Elastic (NYSE:ESTC - Get Free Report) last announced its quarterly earnings data on Thursday, May 29th. The company reported $0.47 EPS for the quarter, topping analysts' consensus estimates of $0.37 by $0.10. Elastic had a negative return on equity of 4.46% and a negative net margin of 7.29%.The company had revenue of $388.43 million during the quarter, compared to the consensus estimate of $380.61 million. During the same quarter last year, the company earned $0.21 EPS. The company's quarterly revenue was up 15.9% on a year-over-year basis. Elastic has set its FY 2026 guidance at 2.240-2.32 EPS. Q1 2026 guidance at 0.410-0.43 EPS. On average, research analysts predict that Elastic N.V. will post -0.77 EPS for the current year.

Insider Activity at Elastic

In other news, CEO Ashutosh Kulkarni sold 22,901 shares of the stock in a transaction on Monday, June 9th. The stock was sold at an average price of $86.91, for a total value of $1,990,325.91. Following the completion of the transaction, the chief executive officer directly owned 454,841 shares in the company, valued at approximately $39,530,231.31. This represents a 4.79% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CRO Mark Eugene Dodds sold 2,500 shares of the stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $83.50, for a total value of $208,750.00. Following the completion of the transaction, the executive owned 172,321 shares of the company's stock, valued at $14,388,803.50. The trade was a 1.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 50,913 shares of company stock valued at $4,416,324. Insiders own 15.90% of the company's stock.

Institutional Investors Weigh In On Elastic

Several large investors have recently modified their holdings of the stock. Bank of New York Mellon Corp grew its position in shares of Elastic by 4.6% during 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 in the last quarter. Cetera Investment Advisers grew its stake in Elastic by 13.3% during the fourth quarter. Cetera Investment Advisers now owns 7,203 shares of the company's stock valued at $714,000 after acquiring an additional 843 shares in the last quarter. Oppenheimer Asset Management Inc. bought a new position in Elastic during the first quarter valued at $205,000. Teacher Retirement System of Texas lifted its holdings in Elastic by 26.6% during the 1st quarter. Teacher Retirement System of Texas now owns 18,130 shares of the company's stock valued at $1,615,000 after buying an additional 3,813 shares in the last quarter. Finally, Principal Financial Group Inc. increased its position in Elastic by 666.7% during the 1st quarter. Principal Financial Group Inc. now owns 55,959 shares of the company's stock valued at $4,986,000 after purchasing an additional 48,660 shares during the period. Hedge funds and other institutional investors own 97.03% of the company's stock.

About Elastic

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.

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