Wedbush Has Lowered Expectations for Elastic (NYSE:ESTC) Stock Price

Key Points

• Wedbush lowered its price target on Elastic from $74 to $65, but kept an outperform rating, implying about 8.3% upside from the previous close.
• Other analysts also trimmed expectations, with TD Cowen, JPMorgan, Wolfe Research, and Oppenheimer adjusting targets, though the overall consensus remains Moderate Buy with a $82.89 average price target.
• Elastic recently beat quarterly earnings and revenue estimates and issued stronger-than-expected guidance, but investors appear cautious about potential growth deceleration in fiscal 2027.

Elastic (NYSE:ESTC - Get Free Report) had its target price dropped by analysts at Wedbush from $74.00 to $65.00 in a report released on Friday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Wedbush's price target would indicate a potential upside of 8.28% from the company's previous close.

Several other equities research analysts have also commented on the company. TD Cowen decreased their price target on Elastic from $65.00 to $60.00 and set a "hold" rating on the stock in a research note on Tuesday. JPMorgan Chase & Co. reduced their price objective on Elastic from $99.00 to $80.00 and set an "overweight" rating for the company in a report on Wednesday. Wolfe Research set a $55.00 target price on Elastic in a research report on Friday. Rosenblatt Securities restated a "buy" rating and issued a $110.00 price target on shares of Elastic in a research report on Tuesday. Finally, Oppenheimer cut their price target on Elastic from $85.00 to $75.00 and set an "outperform" rating for the company in a research note on Friday. Eighteen analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $82.89.

Elastic Price Performance

Shares of NYSE ESTC traded up $2.42 during midday trading on Friday, hitting $60.03. The company had a trading volume of 1,429,028 shares, compared to its average volume of 2,025,182. The firm has a market capitalization of $6.21 billion, a price-to-earnings ratio of -75.65, a price-to-earnings-growth ratio of 101.99 and a beta of 0.88. Elastic has a twelve month low of $42.05 and a twelve month high of $96.07. The business has a 50-day simple moving average of $50.20 and a two-hundred day simple moving average of $62.82. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.72.

Elastic (NYSE:ESTC - Get Free Report) last issued its earnings results on Thursday, May 28th. The company reported $0.61 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.05. Elastic had a negative net margin of 5.04% and a negative return on equity of 2.34%. The company had revenue of $450.68 million for the quarter, compared to analyst estimates of $446.66 million. During the same period in the prior year, the business posted $0.47 earnings per share. The firm's revenue for the quarter was up 16.0% compared to the same quarter last year. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. Equities research analysts anticipate that Elastic will post 0.04 earnings per share for the current year.

Insider Activity

In other news, insider Ken Exner sold 4,310 shares of the company's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $52.28, for a total value of $225,326.80. Following the sale, the insider directly owned 222,728 shares in the company, valued at $11,644,219.84. This represents a 1.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CRO Mark Eugene Dodds sold 3,723 shares of the stock in a transaction on Monday, March 9th. The shares were sold at an average price of $52.28, for a total value of $194,638.44. Following the sale, the executive directly owned 152,563 shares in the company, valued at approximately $7,975,993.64. The trade was a 2.38% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 38,188 shares of company stock worth $1,996,469 in the last quarter. 12.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ESTC. Focus Partners Wealth purchased a new position in Elastic in the 1st quarter valued at about $494,000. Northwestern Mutual Wealth Management Co. raised its position in shares of Elastic by 17.3% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,159 shares of the company's stock valued at $98,000 after buying an additional 171 shares during the last quarter. Invesco Ltd. raised its position in shares of Elastic by 11.7% in the second quarter. Invesco Ltd. now owns 95,332 shares of the company's stock valued at $8,039,000 after buying an additional 9,990 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of Elastic by 400.0% during the second quarter. EverSource Wealth Advisors LLC now owns 2,110 shares of the company's stock valued at $178,000 after buying an additional 1,688 shares during the period. Finally, Cerity Partners LLC lifted its stake in shares of Elastic by 24.7% during the second quarter. Cerity Partners LLC now owns 30,545 shares of the company's stock valued at $2,576,000 after buying an additional 6,056 shares during the period. 97.03% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Elastic

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Elastic beat quarterly expectations, posting EPS of $0.61 versus $0.56 expected and revenue of $450.7 million versus $446.7 million expected, with revenue up 16% year over year. Elastic Reports Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: The company’s first-quarter fiscal 2027 guidance also topped consensus, with EPS guidance of $0.57 to $0.59 versus $0.50 expected and revenue guidance of $469 million to $470 million versus about $469.3 million expected. Elastic Reports Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: Management highlighted strong cash generation and a larger contracted backlog, with operating cash flow of $152.7 million and remaining performance obligations of $2.0 billion, which supports the company’s growth story. Elastic shares fall 3.2% as investors digest Q4 results and fiscal 2027 outlook
• Neutral Sentiment: Analysts reacted with mixed but still generally constructive commentary: JPMorgan lowered its price target to $80 from $99, while Rosenblatt reiterated a Buy rating and several firms maintained targets above the current price. Elastic stock information
• Negative Sentiment: Some investors are likely selling because fiscal 2027 revenue guidance implies growth in the mid-teens, which may be viewed as a deceleration after a strong quarter and could leave less room for upside if expectations were high. Elastic shares fall 3.2% as investors digest Q4 results and fiscal 2027 outlook

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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