Elastic (NYSE:ESTC) Reaches New 12-Month High on Earnings Beat

Key Points

• Elastic shares hit a new 52-week high of $105.05 after the company reported adjusted EPS of $0.70, beating the $0.58 consensus, and revenue of $478.1 million, up 15.2% year over year and above expectations.
• Fiscal 2027 guidance exceeded analyst forecasts: Elastic projected EPS of $3.29–$3.37, while second-quarter EPS guidance of $0.80–$0.82 also topped consensus estimates.
• Analyst sentiment is generally positive, with Robert W. Baird raising its price target to $120, though the stock’s sharp rally, a consensus target of $88.22, and recent insider selling highlight valuation and execution risks.

Elastic N.V. (NYSE:ESTC - Get Free Report)'s stock price reached a new 52-week high during trading on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $105.05 and last traded at $105.05, with a volume of 319279 shares. The stock had previously closed at $83.74.

The company reported $0.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.58 by $0.12. The company had revenue of $478.11 million during the quarter, compared to the consensus estimate of $469.75 million. Elastic had a negative return on equity of 1.82% and a net margin of 21.14%.Elastic's revenue for the quarter was up 15.2% on a year-over-year basis. During the same period in the previous year, the company posted $0.60 earnings per share. Elastic has set its FY 2027 guidance at 3.290-3.370 EPS and its Q2 2027 guidance at 0.800-0.820 EPS.

Key Elastic News

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Quarterly beat: Elastic reported adjusted EPS of $0.70, exceeding the $0.58 consensus estimate, while revenue rose 15.2% year over year to $478.1 million, ahead of the approximately $469.8 million analyst forecast. Elastic quarterly earnings report
• Positive Sentiment: Raised outlook: Fiscal 2027 EPS guidance of $3.29-$3.37 is substantially above the $2.64 consensus estimate. Second-quarter EPS guidance of $0.80-$0.82 also exceeds expectations of $0.66, while projected revenue of $486-$487 million is above the $483.2 million consensus. The guidance upgrade is a major reason investors are reassessing the company’s growth and profitability outlook. Elastic fiscal 2027 results
• Positive Sentiment: Analyst support: Robert W. Baird raised its price target from $95 to $120 and assigned an “outperform” rating, implying meaningful upside from the current trading level. Rosenblatt Securities also reaffirmed its “buy” rating. Benzinga analyst update
• Neutral Sentiment: DA Davidson increased its price target from $60 to $80 but maintained a “neutral” rating. This reflects improving expectations while signaling that valuation and execution risks remain after the sharp rally. DA Davidson raises Elastic price target
• Negative Sentiment: Quiver Quantitative data shows 14 insider sales and no insider purchases over the past six months. Although these transactions may reflect scheduled or compensation-related selling, the absence of insider buying could temper enthusiasm. The stock also trades near the upper portion of its 52-week range, increasing sensitivity to any future guidance or execution disappointment.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on ESTC. Wall Street Zen downgraded Elastic from a "buy" rating to a "hold" rating in a report on Saturday, June 13th. Rosenblatt Securities restated a "buy" rating and set a $83.00 price objective on shares of Elastic in a research report on Wednesday. Wolfe Research set a $55.00 target price on shares of Elastic in a report on Friday, May 29th. Robert W. Baird lifted their price target on shares of Elastic from $95.00 to $120.00 and gave the stock an "outperform" rating in a research note on Friday. Finally, William Blair started coverage on shares of Elastic in a research report on Friday, May 22nd. They issued an "outperform" rating for the company. Seventeen research analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $88.22.

Insiders Place Their Bets

In other news, insider Carolyn Herzog sold 9,485 shares of the firm's stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total transaction of $574,885.85. Following the transaction, the insider directly owned 128,439 shares in the company, valued at approximately $7,784,687.79. This trade represents a 6.88% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Ken Exner sold 18,449 shares of the firm's stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total transaction of $1,118,193.89. Following the transaction, the insider owned 360,037 shares in the company, valued at approximately $21,821,842.57. This trade represents a 4.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 110,099 shares of company stock valued at $6,673,100. 12.70% of the stock is owned by insiders.

Institutional Investors Weigh In On Elastic

Institutional investors and hedge funds have recently made changes to their positions in the business. Focus Partners Wealth acquired a new position in Elastic in the 1st quarter valued at about $494,000. Northwestern Mutual Wealth Management Co. grew its stake in shares of Elastic by 17.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,159 shares of the company's stock valued at $98,000 after purchasing an additional 171 shares during the last quarter. Invesco Ltd. grew its stake in shares of Elastic by 11.7% in the 2nd quarter. Invesco Ltd. now owns 95,332 shares of the company's stock valued at $8,039,000 after purchasing an additional 9,990 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in shares of Elastic by 400.0% in the second quarter. EverSource Wealth Advisors LLC now owns 2,110 shares of the company's stock valued at $178,000 after purchasing an additional 1,688 shares during the period. Finally, Cerity Partners LLC increased its holdings in shares of Elastic by 24.7% in the second quarter. Cerity Partners LLC now owns 30,545 shares of the company's stock valued at $2,576,000 after purchasing an additional 6,056 shares during the period. 97.03% of the stock is owned by hedge funds and other institutional investors.

Elastic Price Performance

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 company has a 50 day moving average price of $67.44 and a 200 day moving average price of $58.76. The firm has a market cap of $10.92 billion, a PE ratio of 30.01, a PEG ratio of 19.77 and a beta of 0.98.

Elastic Company Profile

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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