Elastic's (ESTC) Neutral Rating Reiterated at Cantor Fitzgerald

Key Points

• Cantor Fitzgerald reaffirmed its neutral rating on Elastic and kept a $59 price target, implying about 9.9% upside from the current share price.
• Elastic’s latest quarterly results beat expectations, with EPS of $0.61 versus $0.56 expected and revenue of $450.68 million versus $446.66 million anticipated; revenue rose 16% year over year.
• The stock has seen mixed sentiment from analysts and insiders, with multiple firms adjusting ratings while insiders sold shares recently; meanwhile, hedge funds continue to hold 97.03% of the company’s stock.

Elastic (NYSE:ESTC - Get Free Report)'s stock had its "neutral" rating reaffirmed by analysts at Cantor Fitzgerald in a note issued to investors on Thursday,Benzinga reports. They currently have a $59.00 target price on the stock. Cantor Fitzgerald's price target would suggest a potential upside of 9.92% from the stock's current price.

Several other research firms have also recently issued reports on ESTC. Wall Street Zen cut shares of Elastic from a "buy" rating to a "hold" rating in a report on Saturday, June 13th. DA Davidson cut their target price on Elastic from $65.00 to $60.00 and set a "neutral" rating for the company in a research report on Friday, May 29th. William Blair started coverage on Elastic in a research note on Friday, May 22nd. They set an "outperform" rating for the company. Barclays lowered their price target on Elastic from $76.00 to $68.00 and set an "overweight" rating on the stock in a research report on Friday, May 29th. Finally, Weiss Ratings raised Elastic from a "sell (e+)" rating to a "sell (d+)" rating in a research note on Tuesday, June 9th. Eighteen research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Elastic presently has an average rating of "Moderate Buy" and an average price target of $80.04.

Elastic Stock Performance

Shares of NYSE ESTC traded down $5.04 during midday trading on Thursday, reaching $53.67. 232,199 shares of the company traded hands, compared to its average volume of 2,075,375. The company has a market cap of $5.58 billion, a price-to-earnings ratio of 15.32, a PEG ratio of 15.16 and a beta of 1.00. The stock has a 50-day moving average price of $54.62 and a 200 day moving average price of $60.36. Elastic has a 52 week low of $42.05 and a 52 week high of $96.07. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.68 and a quick ratio of 1.68.

Elastic (NYSE:ESTC - Get Free Report) last announced its earnings results on Thursday, May 28th. The company reported $0.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.56 by $0.05. The firm had revenue of $450.68 million during the quarter, compared to analyst estimates of $446.66 million. Elastic had a net margin of 21.14% and a negative return on equity of 1.82%. Elastic's revenue was up 16.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.47 EPS. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. Sell-side analysts anticipate that Elastic will post 0.23 earnings per share for the current fiscal year.

Insider Buying and Selling at Elastic

In other Elastic news, insider Ken Exner sold 18,449 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 $1,118,193.89. Following the completion of the sale, the insider directly owned 360,037 shares of the company's stock, valued at approximately $21,821,842.57. This represents a 4.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Shay Banon sold 9,288 shares of the firm's stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total transaction of $562,945.68. Following the completion of the transaction, the chief technology officer owned 4,417,140 shares of the company's stock, valued at approximately $267,722,855.40. The trade was a 0.21% 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. Insiders sold a total of 110,099 shares of company stock valued at $6,673,100 over the last 90 days. 12.70% of the stock is owned by insiders.

Institutional Investors Weigh In On Elastic

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

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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