Elastic (NYSE:ESTC) Trading Up 9.7% – Still a Buy?

Elastic N.V. (NYSE:ESTC) shares were up 9.7% on Thursday . The company traded as high as $84.54 and last traded at $84.6730. 2,536,045 shares changed hands during mid-day trading, an increase of 25% from the average session volume of 2,027,979 shares. The stock had previously closed at $77.16.

Analysts Set New Price Targets

ESTC has been the topic of a number of analyst reports. Cantor Fitzgerald reissued a “neutral” rating and issued a $59.00 price target on shares of Elastic in a research report on Thursday, June 25th. TD Cowen dropped their target price on Elastic from $65.00 to $60.00 and set a “hold” rating on the stock in a report on Tuesday, May 26th. Wolfe Research set a $55.00 target price on Elastic in a research note on Friday, May 29th. Morgan Stanley downgraded Elastic from an “overweight” rating to an “equal weight” rating and reduced their price target for the company from $73.00 to $66.00 in a report on Tuesday, July 21st. Finally, William Blair assumed coverage on shares of Elastic in a research report on Friday, May 22nd. They set an “outperform” rating on the stock. Seventeen investment analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the stock. According to MarketBeat, Elastic currently has an average rating of “Moderate Buy” and a consensus target price of $79.70.

Elastic Price Performance

The firm has a 50-day moving average of $62.32 and a 200 day moving average of $57.37. The company has a market capitalization of $8.80 billion, a PE ratio of 24.20, a PEG ratio of 17.28 and a beta of 0.98. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.68 and a quick ratio of 1.68.

Elastic (NYSE:ESTC) last posted its earnings results on Thursday, May 28th. The company reported $0.61 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.05. The business had revenue of $450.68 million for the quarter, compared to analysts’ expectations of $446.66 million. Elastic had a net margin of 21.14% and a negative return on equity of 1.82%. The business’s revenue for the quarter was up 16.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.47 EPS. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. As a group, research analysts anticipate that Elastic N.V. will post 0.26 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Carolyn Herzog sold 9,485 shares of the company’s stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total transaction of $574,885.85. Following the completion of the sale, the insider owned 128,439 shares in the company, valued at approximately $7,784,687.79. This represents a 6.88% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 business’s stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total value of $1,118,193.89. Following the sale, the insider owned 360,037 shares of the company’s stock, valued at approximately $21,821,842.57. This represents a 4.87% decrease in their ownership of the stock. 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. Insiders have sold a total of 110,099 shares of company stock worth $6,673,100 in the last 90 days. Insiders own 12.70% of the company’s stock.

Institutional Investors Weigh In On Elastic

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Bessemer Group Inc. bought a new position in Elastic in the 1st quarter worth approximately $25,000. Basecamp Wealth Advisors LLC bought a new stake in Elastic in the first quarter worth about $28,000. Geneos Wealth Management Inc. bought a new position in Elastic in the 2nd quarter valued at $31,000. Activest Wealth Management boosted its position in Elastic by 3,181.2% in the 4th quarter. Activest Wealth Management now owns 525 shares of the company’s stock valued at $40,000 after buying an additional 509 shares during the period. Finally, Harbor Investment Advisory LLC bought a new position in shares of Elastic during the 2nd quarter worth $42,000. 97.03% of the stock is currently owned by hedge funds and other institutional investors.

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.