Bank of America Issues Positive Forecast for Okta (NASDAQ:OKTA) Stock Price

Key Points

• Bank of America raised its Okta price target to $200 from $170 while maintaining a neutral rating, implying approximately 9.1% upside from the cited share price.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $175.89; several firms, including Jefferies and Truist, also set $200 targets or higher.
• Okta exceeded quarterly expectations with adjusted EPS of $1.05 versus $0.96 expected and revenue of $805 million, but shares fell 3.6% in trading. Insider selling—including a significant CFO transaction—remains a potential sentiment headwind.

Okta (NASDAQ:OKTA - Get Free Report) had its price objective boosted by analysts at Bank of America from $170.00 to $200.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. Bank of America's price objective indicates a potential upside of 9.13% from the stock's current price.

A number of other equities research analysts have also commented on OKTA. Jefferies Financial Group upped their price target on shares of Okta from $170.00 to $200.00 and gave the company a "buy" rating in a report on Thursday, August 27th. Roth Capital reissued a "buy" rating on shares of Okta in a research report on Thursday, August 27th. Sanford C. Bernstein cut Okta from an "outperform" rating to a "market perform" rating and raised their target price for the company from $143.00 to $174.00 in a research note on Thursday. Truist Financial restated a "buy" rating and set a $200.00 price target (up from $165.00) on shares of Okta in a research report on Thursday, August 27th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Okta in a research note on Thursday, August 27th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat, Okta has a consensus rating of "Moderate Buy" and an average target price of $175.89.

Okta Trading Down 3.6%

Shares of OKTA traded down $6.75 during mid-day trading on Friday, reaching $183.27. The company's stock had a trading volume of 1,522,171 shares, compared to its average volume of 3,573,935. Okta has a 52 week low of $62.66 and a 52 week high of $192.59. The stock has a market cap of $32.04 billion, a PE ratio of 110.77, a P/E/G ratio of 5.85 and a beta of 0.79. The company's fifty day moving average price is $152.68 and its two-hundred day moving average price is $115.01.

Okta (NASDAQ:OKTA - Get Free Report) last issued its earnings results on Wednesday, August 26th. The company reported $1.05 EPS for the quarter, topping analysts' consensus estimates of $0.96 by $0.09. Okta had a net margin of 9.63% and a return on equity of 4.50%. The company had revenue of $805.00 million for the quarter, compared to analysts' expectations of $793.00 million. During the same quarter last year, the company earned $0.91 EPS. The firm's revenue was up 10.6% compared to the same quarter last year. Okta has set its FY 2027 guidance at 3.900-3.940 EPS and its Q3 2027 guidance at 0.920-0.940 EPS. Research analysts anticipate that Okta will post 1.92 EPS for the current year.

Insider Buying and Selling

In related news, CFO Brett Tighe sold 41,251 shares of the firm's stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $162.44, for a total transaction of $6,700,812.44. Following the completion of the transaction, the chief financial officer owned 7,693 shares of the company's stock, valued at $1,249,650.92. This trade represents a 84.28% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 2,463 shares of Okta stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $120.00, for a total value of $295,560.00. Following the transaction, the insider owned 25,241 shares of the company's stock, valued at $3,028,920. The trade was a 8.89% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 153,948 shares of company stock worth $23,709,993. 4.61% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Okta

Large investors have recently modified their holdings of the stock. Washington Trust Advisors Inc. lifted its holdings in shares of Okta by 64.2% in the 2nd quarter. Washington Trust Advisors Inc. now owns 197 shares of the company's stock worth $27,000 after acquiring an additional 77 shares during the last quarter. CX Institutional raised its position in Okta by 5.1% in the second quarter. CX Institutional now owns 2,633 shares of the company's stock valued at $359,000 after purchasing an additional 127 shares during the period. EverSource Wealth Advisors LLC lifted its stake in Okta by 10.7% during the first quarter. EverSource Wealth Advisors LLC now owns 1,333 shares of the company's stock worth $105,000 after purchasing an additional 129 shares in the last quarter. SteelPeak Wealth LLC boosted its position in shares of Okta by 2.8% during the first quarter. SteelPeak Wealth LLC now owns 5,166 shares of the company's stock worth $407,000 after buying an additional 140 shares during the period. Finally, Hennion & Walsh Asset Management Inc. grew its stake in shares of Okta by 1.8% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 9,241 shares of the company's stock valued at $1,261,000 after buying an additional 167 shares in the last quarter. Hedge funds and other institutional investors own 86.64% of the company's stock.

Key Headlines Impacting Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Investors continue to favor cybersecurity and identity-security companies as the growth of AI agents and “agent swarms” raises demand for authentication, access controls, and monitoring. Commentators including Jim Cramer argued that AI could make Okta’s security software more essential. Jim Cramer Says AI Could Make Okta’s Security Software More Essential
• Positive Sentiment: BTIG raised its Okta price target to $219 from $187 and maintained a buy rating, while recent coverage highlighted the company’s strong relative performance and the potential for continued AI-related cybersecurity demand. Okta Stock Jumped 11% This Week
• Positive Sentiment: Okta expanded its strategic distribution partnership with Exclusive Networks to scale identity-first security across Sub-Saharan Africa, potentially broadening its international channel reach. Exclusive Networks and Okta Extend Strategic Distribution Partnership
• Neutral Sentiment: Institutional positioning was mixed: 455 investors added shares in the latest quarter versus 438 that reduced holdings. This suggests continued interest but also meaningful profit-taking after the rally.
• Negative Sentiment: Bernstein downgraded Okta to a market-perform-style rating, despite raising its price target. The downgrade signals that the analyst sees less near-term upside after the stock’s sharp advance and believes favorable cybersecurity expectations may already be reflected in the valuation. Analyst Downgrades Cybersecurity Stocks as AI Security Concerns Mount
• Negative Sentiment: Frequent insider selling is an additional sentiment headwind: company executives, including the CEO and CFO, have reported substantially more sales than purchases over the past six months. Okta’s elevated valuation makes the shares more vulnerable to profit-taking and analyst caution.

About Okta

Okta, Inc provides cloud-based identity and access management solutions for organizations. Its platform helps businesses securely connect employees, customers, partners and applications while managing authentication, authorization and user access across cloud, on-premises and mobile environments.

The company's offerings include single sign-on, multifactor authentication, adaptive access controls, lifecycle management, identity governance and privileged access capabilities. Through its Customer Identity Cloud, powered by Auth0, Okta also provides tools for developers and businesses to embed authentication and authorization features into applications and digital services.

Founded in 2009 by Todd McKinnon and Frederic Kerrest, Okta completed its initial public offering in 2017.

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