Elastic's (ESTC) "Sell (D)" Rating Reaffirmed at Weiss Ratings

Key Points

• Elastic's stock has been reaffirmed with a "sell (D)" rating by Weiss Ratings, indicating continued pessimism from analysts about its growth potential.
• Despite the negative outlook from Weiss, other analysts provide mixed ratings with a consensus average of "Moderate Buy" and a price target of $119.00.
• Elastic's recent earnings report showed a loss of $0.08 per share, significantly missing expectations, though it reported a revenue increase of 19.5% year-over-year.

Elastic (NYSE:ESTC - Get Free Report)'s stock had its "sell (d)" rating reissued by stock analysts at Weiss Ratings in a report issued on Friday,Weiss Ratings reports.

Other research analysts also recently issued research reports about the company. Scotiabank set a $90.00 target price on Elastic and gave the stock a "sector perform" rating in a research note on Monday, October 6th. Wells Fargo & Company assumed coverage on Elastic in a research note on Tuesday, September 30th. They issued an "equal weight" rating and a $90.00 target price for the company. Guggenheim raised their target price on Elastic from $107.00 to $122.00 and gave the stock a "buy" rating in a research note on Friday, August 29th. Canaccord Genuity Group raised their target price on Elastic from $110.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday, August 29th. Finally, Robert W. Baird raised their target price on Elastic from $120.00 to $130.00 and gave the stock an "outperform" rating in a research note on Friday, October 10th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $119.00.

Elastic Trading Up 1.0%

Shares of ESTC opened at $88.00 on Friday. The business has a 50-day moving average of $84.85 and a 200 day moving average of $84.41. Elastic has a fifty-two week low of $70.14 and a fifty-two week high of $118.84. The firm has a market cap of $9.35 billion, a P/E ratio of -110.00 and a beta of 1.05. The company has a debt-to-equity ratio of 0.59, a quick ratio of 2.09 and a current ratio of 2.09.

Elastic (NYSE:ESTC - Get Free Report) last announced its quarterly earnings data on Thursday, August 28th. The company reported ($0.08) earnings per share 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 during the quarter, compared to analysts' expectations of $397.13 million. During the same period last year, the business posted $0.35 EPS. The company's 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. As a group, research analysts forecast that Elastic will post -0.77 EPS for the current year.

Elastic announced that its Board of Directors has initiated a share buyback plan on Thursday, October 9th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

Insider Activity

In other news, insider Ken Exner sold 6,290 shares of Elastic 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 sale, the insider owned 233,582 shares in the company, valued at approximately $21,050,409.84. This trade represents a 2.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Carolyn Herzog sold 5,143 shares of Elastic stock in a transaction dated Tuesday, September 9th. The shares were sold at an average price of $90.12, for a total value of $463,487.16. Following the sale, the insider owned 94,677 shares of the company's stock, valued at approximately $8,532,291.24. This trade represents a 5.15% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 352,042 shares of company stock worth $31,087,394. Company insiders own 12.70% of the company's stock.

Hedge Funds Weigh In On Elastic

A number of large investors have recently modified their holdings of the company. Massachusetts Financial Services Co. MA raised its holdings in shares of Elastic by 5,437.6% during the 1st quarter. Massachusetts Financial Services Co. MA now owns 2,288,128 shares of the company's stock valued at $203,872,000 after buying an additional 2,246,808 shares in the last quarter. AQR Capital Management LLC raised its holdings in shares of Elastic by 30.5% during the 2nd quarter. AQR Capital Management LLC now owns 1,832,215 shares of the company's stock valued at $153,100,000 after buying an additional 428,356 shares in the last quarter. Voya Investment Management LLC raised its holdings in shares of Elastic by 4.7% during the 3rd quarter. Voya Investment Management LLC now owns 1,781,925 shares of the company's stock valued at $150,555,000 after buying an additional 79,465 shares in the last quarter. State Street Corp raised its holdings in shares of Elastic by 4.0% during the 2nd quarter. State Street Corp now owns 1,574,525 shares of the company's stock valued at $132,780,000 after buying an additional 59,850 shares in the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of Elastic by 3.6% during the 2nd quarter. Geode Capital Management LLC now owns 1,569,578 shares of the company's stock valued at $132,384,000 after buying an additional 54,812 shares in the last quarter. 97.03% of the stock is owned by hedge funds and other institutional investors.

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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