Elastic (NYSE:ESTC) Upgraded at Wall Street Zen

Key Points

• Elastic has been upgraded from a "hold" to a "buy" rating by Wall Street Zen, indicating a more favorable outlook for the stock.
• Multiple research firms, including Barclays and Jefferies, have raised their price targets on Elastic, with estimates reaching up to $134.00.
• Despite reporting a quarterly loss of ($0.08) EPS, Elastic's revenue grew by 19.5% year-over-year, totaling $415.29 million for the quarter.

Elastic (NYSE:ESTC - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday.

A number of other research firms also recently weighed in on ESTC. Barclays increased their price target on Elastic from $105.00 to $125.00 and gave the company an "overweight" rating in a research note on Friday, August 29th. Jefferies Financial Group increased their price target on Elastic from $110.00 to $125.00 and gave the company a "buy" rating in a research note on Friday, August 29th. Stifel Nicolaus increased their price target on Elastic from $112.00 to $134.00 and gave the company a "buy" rating in a research note on Friday, August 29th. Scotiabank set a $90.00 price target on Elastic and gave the company a "sector perform" rating in a research note on Monday. Finally, Rosenblatt Securities reissued a "buy" rating and issued a $130.00 price target on shares of Elastic in a research note on Friday, August 29th. One research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $119.00.

Elastic Stock Up 6.1%

NYSE:ESTC opened at $86.52 on Friday. The stock's fifty day moving average price is $83.40 and its two-hundred day moving average price is $84.58. Elastic has a 52-week low of $70.14 and a 52-week high of $118.84. The company has a debt-to-equity ratio of 0.59, a quick ratio of 2.09 and a current ratio of 2.09. The company has a market cap of $9.19 billion, a price-to-earnings ratio of -108.15 and a beta of 1.05.

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

Elastic declared that its board has initiated a share buyback program on Thursday, October 9th that permits the company to buyback $0.00 in shares. This buyback authorization permits the company to reacquire shares of its stock through open market purchases. Stock buyback programs are generally an indication that the company's management believes its shares are undervalued.

Insider Activity

In other Elastic news, insider Ken Exner sold 6,290 shares of the stock in a transaction dated Tuesday, September 9th. The stock was sold at an average price of $90.12, for a total transaction of $566,854.80. Following the completion of the transaction, the insider owned 233,582 shares in the company, valued at approximately $21,050,409.84. This represents a 2.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Ashutosh Kulkarni sold 19,622 shares of the stock in a transaction dated Tuesday, September 9th. The stock was sold at an average price of $90.12, for a total value of $1,768,334.64. Following the transaction, the chief executive officer owned 457,314 shares of the company's stock, valued at approximately $41,213,137.68. This trade represents a 4.11% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 350,792 shares of company stock worth $30,978,369. 12.70% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Elastic

Large investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC grew its holdings in shares of Elastic by 134.6% in the 1st quarter. GAMMA Investing LLC now owns 570 shares of the company's stock valued at $51,000 after acquiring an additional 327 shares in the last quarter. Simon Quick Advisors LLC bought a new position in shares of Elastic in the 1st quarter valued at about $236,000. NorthCrest Asset Manangement LLC bought a new position in shares of Elastic in the 1st quarter valued at about $276,000. Wealth Enhancement Advisory Services LLC bought a new position in shares of Elastic in the 1st quarter valued at about $1,835,000. Finally, Exchange Traded Concepts LLC grew its holdings in shares of Elastic by 22.7% in the 1st quarter. Exchange Traded Concepts LLC now owns 29,095 shares of the company's stock valued at $2,592,000 after acquiring an additional 5,388 shares in the last quarter. Institutional investors own 97.03% of the company's stock.

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.

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