Wedbush Reaffirms Outperform Rating for Elastic (NYSE:ESTC)

Elastic (NYSE:ESTC)‘s stock had its “outperform” rating restated by investment analysts at Wedbush in a research report issued on Friday, Benzinga reports. They currently have a $125.00 target price on the stock. Wedbush’s target price points to a potential upside of 31.11% from the company’s current price.

A number of other research firms have also issued reports on ESTC. Needham & Company LLC restated a “hold” rating on shares of Elastic in a report on Friday. Cantor Fitzgerald reiterated a “neutral” rating and issued a $100.00 price objective on shares of Elastic in a research note on Wednesday, September 23rd. Monness Crespi & Hardt upgraded shares of Elastic from a “neutral” rating to a “buy” rating and set a $120.00 price target on the stock in a research note on Friday. TD Cowen increased their price target on shares of Elastic from $55.00 to $70.00 and gave the stock a “hold” rating in a research note on Tuesday, August 25th. Finally, Bank of America increased their price target on shares of Elastic from $90.00 to $108.00 and gave the stock a “neutral” rating in a research note on Friday, August 28th. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $97.92.

Elastic Stock Up 2.4%

ESTC stock opened at $95.34 on Friday. Elastic has a 12 month low of $42.05 and a 12 month high of $108.00. The firm has a market cap of $10.01 billion, a PE ratio of 26.71, a P/E/G ratio of 7.82 and a beta of 1.03. The firm has a 50 day simple moving average of $85.85 and a 200 day simple moving average of $65.97. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.81 and a quick ratio of 1.81.

Elastic (NYSE:ESTC) last released its earnings results on Thursday, August 27th. The company reported $0.70 EPS for the quarter, beating the consensus estimate of $0.58 by $0.12. Elastic had a net margin of 20.84% and a negative return on equity of 0.35%. The business had revenue of $478.11 million during the quarter, compared to analyst estimates of $469.75 million. During the same period in the prior year, the business earned $0.60 earnings per share. The business’s quarterly revenue was up 15.2% on a year-over-year basis. Elastic has set its FY 2027 guidance at 3.290-3.370 EPS and its Q2 2027 guidance at 0.800-0.820 EPS. Equities research analysts forecast that Elastic will post 0.65 earnings per share for the current fiscal year.

Insider Transactions at Elastic

In other news, Director Steven Schuurman sold 1,500,000 shares of the firm’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $90.13, for a total transaction of $135,195,000.00. Following the completion of the transaction, the director directly owned 4,504,600 shares of the company’s stock, valued at approximately $405,999,598. This trade represents a 24.98% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Ashutosh Kulkarni sold 29,227 shares of the stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $87.78, for a total transaction of $2,565,546.06. Following the sale, the chief executive officer owned 599,525 shares of the company’s stock, valued at $52,626,304.50. This trade represents a 4.65% decrease in their position. 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. In the last three months, insiders sold 2,585,641 shares of company stock valued at $234,551,366. Company insiders own 12.70% of the company’s stock.

Institutional Investors Weigh In On Elastic

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. GAMMA Investing LLC increased its position in Elastic by 61.9% in the 3rd quarter. GAMMA Investing LLC now owns 1,470 shares of the company’s stock valued at $135,000 after acquiring an additional 562 shares in the last quarter. Farther Finance Advisors LLC boosted its stake in shares of Elastic by 49.8% in the 3rd quarter. Farther Finance Advisors LLC now owns 1,709 shares of the company’s stock valued at $157,000 after purchasing an additional 568 shares during the last quarter. Artemis Investment Management LLP bought a new position in shares of Elastic in the 3rd quarter valued at about $9,109,000. Ausbil Investment Management Ltd bought a new position in shares of Elastic in the 3rd quarter valued at about $679,000. Finally, Sequoia Financial Advisors LLC bought a new position in shares of Elastic in the 2nd quarter valued at about $211,000. Institutional investors and hedge funds own 97.03% of the company’s stock.

Key Stories Impacting Elastic

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Analyst upgrades and price-target increases: Monness Crespi & Hardt upgraded Elastic from “neutral” to “buy” and set a $120 price target. Stifel Nicolaus also raised its target from $107 to $120 while maintaining a “buy” rating. The targets imply substantial upside from recent trading levels and provide a near-term boost to investor confidence. Ticker Report analyst upgrade
• Positive Sentiment: AI product expansion: Elastic announced AlertZero, a team of specialized AI agents designed to support the security-operations lifecycle. It also introduced the private preview of Elastic nightshift AI SRE, an observability agent that investigates technical issues, tests multiple root-cause hypotheses and uses broader telemetry context than traditional rule-based alerts. These launches reinforce Elastic’s strategy of monetizing AI across security and observability. AlertZero announcement Elastic nightshift AI SRE announcement
• Positive Sentiment: Industry recognition: Gartner named Elastic a Leader in its Magic Quadrant for Enterprise AI Search, citing the company’s ability to execute and completeness of vision. Elastic also ranked first or second across the evaluated use cases, supporting its credibility in the growing enterprise AI-search market. Gartner recognition
• Neutral Sentiment: Analyst commentary remains divided: some view Elastic as a potential AI software winner, while others argue that stronger customer commitments have not yet resolved the economics and that competitive friction could limit AI-driven gains. The next AI software winner Customer commitments and economics
• Negative Sentiment: Insider selling: Insider Mark Eugene Dodds sold 10,000 shares, while co-founder Steven Schuurman sold 1.5 million shares. Although insider transactions do not necessarily indicate deteriorating fundamentals, the larger sale may raise concerns about near-term supply and management’s view of valuation. Steven Schuurman insider sale Mark Eugene Dodds insider sale

About Elastic

Elastic N.V. (NYSE: ESTC) develops search, observability and security software for organizations that need to collect, analyze and act on large volumes of data. Its platform helps users search structured and unstructured information, monitor applications and infrastructure, detect security threats and build artificial intelligence-powered experiences.

The company’s principal offerings include Elasticsearch, its distributed search and analytics engine; Kibana, a visualization and data exploration interface; and Elastic Cloud, a managed cloud service for deploying Elastic products.