Elastic's (ESTC) "Buy" Rating Reaffirmed at Guggenheim

Key Points

• Guggenheim reaffirmed its “Buy” rating on Elastic and set a $106 price target, implying approximately 23.8% upside from the stock’s $85.62 opening price.
• Analyst sentiment is broadly positive, with 17 Buy ratings and 13 Holds; Elastic has a “Moderate Buy” consensus rating and an average price target of $82.19.
• Elastic exceeded quarterly expectations, reporting $0.61 in EPS versus $0.56 expected and $450.68 million in revenue versus $446.66 million estimated. Revenue increased 16% year over year.

Elastic (NYSE:ESTC - Get Free Report)'s stock had its "buy" rating reiterated by equities researchers at Guggenheim in a research note issued on Wednesday,Benzinga reports. They currently have a $106.00 price target on the stock. Guggenheim's target price indicates a potential upside of 23.80% from the company's current price.

Several other research analysts have also recently commented on the stock. Citigroup increased their target price on shares of Elastic from $95.00 to $104.00 and gave the stock a "buy" rating in a report on Friday, May 29th. TD Cowen lowered their price target on shares of Elastic from $65.00 to $60.00 and set a "hold" rating on the stock in a research note on Tuesday, May 26th. Piper Sandler reissued an "overweight" rating on shares of Elastic in a research report on Friday, June 26th. The Goldman Sachs Group started coverage on shares of Elastic in a research note on Tuesday, April 21st. They set a "neutral" rating and a $50.00 price objective for the company. Finally, Scotiabank decreased their price objective on Elastic from $61.00 to $58.00 and set a "sector perform" rating for the company in a report on Friday, May 29th. Seventeen research analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $82.19.

Elastic Stock Up 0.7%

ESTC stock opened at $85.62 on Wednesday. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.68 and a quick ratio of 1.68. The stock has a market capitalization of $8.90 billion, a P/E ratio of 24.18, a P/E/G ratio of 19.62 and a beta of 0.98. The business has a 50-day moving average of $64.14 and a 200-day moving average of $57.71. Elastic has a fifty-two week low of $42.05 and a fifty-two week high of $96.07.

Elastic (NYSE:ESTC - Get Free Report) last posted its quarterly earnings data on Thursday, May 28th. The company reported $0.61 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.56 by $0.05. The business had revenue of $450.68 million during the quarter, compared to the consensus estimate of $446.66 million. Elastic had a negative return on equity of 1.82% and a net margin of 21.14%.Elastic's quarterly revenue was up 16.0% on a year-over-year basis. During the same period last year, the company earned $0.47 earnings per share. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. On average, sell-side analysts anticipate that Elastic will post 0.26 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CRO Mark Eugene Dodds sold 18,439 shares of the business's stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total transaction of $1,117,587.79. Following the transaction, the executive directly owned 298,211 shares in the company, valued at $18,074,568.71. The trade was a 5.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Navam Welihinda sold 12,961 shares of the company's stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total transaction of $785,566.21. Following the completion of the sale, the chief financial officer directly owned 209,254 shares in the company, valued at approximately $12,682,884.94. The trade was a 5.83% decrease in their ownership of the stock. 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 quarter, insiders have sold 110,099 shares of company stock worth $6,673,100. Corporate insiders own 12.70% of the company's stock.

Institutional Trading of Elastic

A number of hedge funds have recently made changes to their positions in the business. AQR Capital Management LLC increased its holdings in shares of Elastic by 153.4% in the fourth quarter. AQR Capital Management LLC now owns 7,545,081 shares of the company's stock valued at $569,201,000 after purchasing an additional 4,567,720 shares during the last quarter. Pictet Asset Management Holding SA boosted its holdings in shares of Elastic by 43.2% during the 1st quarter. Pictet Asset Management Holding SA now owns 6,492,717 shares of the company's stock worth $324,550,000 after buying an additional 1,958,219 shares during the period. FIL Ltd boosted its holdings in shares of Elastic by 36.9% during the 4th quarter. FIL Ltd now owns 3,628,748 shares of the company's stock worth $273,753,000 after buying an additional 977,578 shares during the period. First Trust Advisors LP grew its stake in Elastic by 516.1% in the 1st quarter. First Trust Advisors LP now owns 2,627,636 shares of the company's stock valued at $131,356,000 after buying an additional 2,201,140 shares during the last quarter. Finally, Geode Capital Management LLC grew its stake in Elastic by 2.9% in the 4th quarter. Geode Capital Management LLC now owns 1,724,508 shares of the company's stock valued at $130,124,000 after buying an additional 49,198 shares during the last quarter. 97.03% of the stock is owned by institutional investors and hedge funds.

About Elastic

Elastic N.V. operates as a search and analytics company, offering a suite of open source and subscription-based solutions for search, observability and security use cases. Its flagship product, Elasticsearch, enables fast and scalable full-text search and analytics across large volumes of structured and unstructured data. Complementary tools such as Kibana provide visualization capabilities, while Beats and Logstash serve as lightweight data shippers and data processing pipelines, respectively.

The company was founded in 2012 by Shay Banon, who serves as chief technology officer, and Steven Schuurman.

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