Elastic (NYSE:ESTC) Trading Up 9.7% – Here’s Why

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

Analyst Upgrades and Downgrades

Several analysts recently commented on the company. Weiss Ratings raised Elastic from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, July 15th. Canaccord Genuity Group reduced their price objective on Elastic from $90.00 to $80.00 and set a “buy” rating for the company in a research note on Friday, May 29th. TD Cowen decreased their price objective on Elastic from $65.00 to $60.00 and set a “hold” rating on the stock in a report on Tuesday, May 26th. William Blair assumed coverage on shares of Elastic in a report on Friday, May 22nd. They set an “outperform” rating for the company. Finally, Guggenheim decreased their price target on shares of Elastic from $116.00 to $106.00 and set a “buy” rating on the stock in a research note on Tuesday, May 19th. Seventeen investment analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $79.70.

Elastic Stock Performance

The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.68 and a current ratio of 1.68. The firm’s 50-day moving average price is $62.32 and its two-hundred day moving average price is $57.37. The stock has a market cap of $8.80 billion, a price-to-earnings ratio of 24.20, a PEG ratio of 17.28 and a beta of 0.98.

Elastic (NYSE:ESTC) last posted its earnings results on Thursday, May 28th. The company reported $0.61 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.05. The company had revenue of $450.68 million for the quarter, compared to analyst estimates of $446.66 million. Elastic had a net margin of 21.14% and a negative return on equity of 1.82%. Elastic’s revenue was up 16.0% on a year-over-year basis. During the same period in the previous year, the business posted $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. On average, analysts expect that Elastic N.V. will post 0.26 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Navam Welihinda sold 12,961 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 value of $785,566.21. Following the transaction, the chief financial officer owned 209,254 shares of the company’s stock, valued at $12,682,884.94. This represents a 5.83% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ashutosh Kulkarni sold 40,373 shares of the firm’s stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total value of $2,447,007.53. Following the sale, the chief executive officer directly owned 628,752 shares of the company’s stock, valued at $38,108,658.72. The trade was a 6.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 110,099 shares of company stock worth $6,673,100. Corporate insiders own 12.70% of the company’s stock.

Hedge Funds Weigh In On Elastic

A number of hedge funds have recently made changes to their positions in the stock. AQR Capital Management LLC increased its stake in Elastic by 153.4% during the fourth quarter. AQR Capital Management LLC now owns 7,545,081 shares of the company’s stock worth $569,201,000 after purchasing an additional 4,567,720 shares during the period. First Trust Advisors LP lifted its position in shares of Elastic by 516.1% during the first quarter. First Trust Advisors LP now owns 2,627,636 shares of the company’s stock worth $131,356,000 after purchasing an additional 2,201,140 shares in the last quarter. Pictet Asset Management Holding SA boosted its stake in shares of Elastic by 43.2% in the first quarter. Pictet Asset Management Holding SA now owns 6,492,717 shares of the company’s stock valued at $324,550,000 after purchasing an additional 1,958,219 shares during the period. FIL Ltd boosted its stake in shares of Elastic by 36.9% in the fourth quarter. FIL Ltd now owns 3,628,748 shares of the company’s stock valued at $273,753,000 after purchasing an additional 977,578 shares during the period. Finally, Alyeska Investment Group L.P. grew its holdings in shares of Elastic by 490.4% in the third quarter. Alyeska Investment Group L.P. now owns 1,113,503 shares of the company’s stock valued at $94,080,000 after purchasing an additional 924,911 shares in the last quarter. Hedge funds and other institutional investors 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.