Royal Bank Of Canada Cuts Elastic (NYSE:ESTC) Price Target to $70.00

Key Points

• Royal Bank of Canada cut Elastic's price target to $70 (from $80) but kept an "outperform" rating, with the new target implying roughly a 46% upside from the prior close.
• The analyst landscape is mixed but overall positive — the consensus is a Moderate Buy with a $94.21 average target, while individual targets range from Wells Fargo's $60 to Guggenheim's $116.
• Elastic recently beat earnings and revenue estimates (EPS $0.73 vs $0.64; revenue $449.9M vs $438.4M, +17.7% YoY) and set FY26 EPS guidance of 2.500–2.540.

Elastic (NYSE:ESTC - Get Free Report) had its price target reduced by research analysts at Royal Bank Of Canada from $80.00 to $70.00 in a research note issued to investors on Thursday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Royal Bank Of Canada's price objective would indicate a potential upside of 46.15% from the company's previous close.

ESTC has been the subject of several other reports. Barclays cut their target price on shares of Elastic from $78.00 to $76.00 and set an "overweight" rating for the company in a research note on Friday, February 27th. Guggenheim reissued a "buy" rating and set a $116.00 target price on shares of Elastic in a research note on Wednesday, February 18th. Wells Fargo & Company reduced their price target on shares of Elastic from $75.00 to $60.00 and set an "equal weight" rating for the company in a research report on Friday, February 27th. Piper Sandler reduced their price target on shares of Elastic from $110.00 to $85.00 and set an "overweight" rating for the company in a research report on Friday, February 27th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Elastic in a research report on Wednesday, January 21st. Seventeen research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $94.21.

Elastic Price Performance

ESTC stock traded up $0.39 on Thursday, hitting $47.90. 336,232 shares of the company's stock traded hands, compared to its average volume of 2,067,777. Elastic has a 1-year low of $42.05 and a 1-year high of $96.07. The stock has a market cap of $4.96 billion, a price-to-earnings ratio of -59.65, a P/E/G ratio of 58.32 and a beta of 1.03. The stock has a fifty day moving average of $53.72 and a 200-day moving average of $70.10. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.72.

Elastic (NYSE:ESTC - Get Free Report) last released its earnings results on Thursday, February 26th. The company reported $0.73 EPS for the quarter, beating the consensus estimate of $0.64 by $0.09. Elastic had a negative net margin of 5.04% and a negative return on equity of 2.34%. The business had revenue of $449.88 million during the quarter, compared to analyst estimates of $438.37 million. During the same period in the prior year, the business earned $0.63 earnings per share. The business's quarterly revenue was up 17.7% on a year-over-year basis. Elastic has set its FY 2026 guidance at 2.500-2.540 EPS and its Q4 2026 guidance at 0.550-0.570 EPS. On average, analysts forecast that Elastic will post -0.77 EPS for the current fiscal year.

Insider Transactions at Elastic

In other Elastic news, insider Carolyn Herzog sold 3,989 shares of the company's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $52.28, for a total value of $208,544.92. Following the transaction, the insider owned 85,335 shares in the company, valued at approximately $4,461,313.80. This represents a 4.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CRO Mark Eugene Dodds sold 3,723 shares of the company's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $52.28, for a total transaction of $194,638.44. Following the completion of the transaction, the executive owned 152,563 shares in the company, valued at approximately $7,975,993.64. This represents a 2.38% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 38,188 shares of company stock worth $1,996,469. 12.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in ESTC. AQR Capital Management LLC increased its stake in Elastic by 153.4% in the 4th quarter. AQR Capital Management LLC now owns 7,545,081 shares of the company's stock valued at $569,201,000 after buying an additional 4,567,720 shares during the period. FIL Ltd increased its stake 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 purchasing an additional 977,578 shares during the last quarter. Alyeska Investment Group L.P. increased its stake in shares of Elastic by 490.4% during the 3rd quarter. Alyeska Investment Group L.P. now owns 1,113,503 shares of the company's stock worth $94,080,000 after purchasing an additional 924,911 shares during the last quarter. Vanguard Group Inc. increased its stake in shares of Elastic by 7.4% during the 3rd quarter. Vanguard Group Inc. now owns 10,206,204 shares of the company's stock worth $862,322,000 after purchasing an additional 705,991 shares during the last quarter. Finally, Goldentree Asset Management LP acquired a new position in shares of Elastic during the 4th quarter worth $49,323,000. Institutional investors and hedge funds own 97.03% of the company's stock.

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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