DA Davidson Issues Positive Forecast for Okta (NASDAQ:OKTA) Stock Price

Key Points

• DA Davidson raised Okta’s price target to $235 from $190 and reiterated its “buy” rating, implying 14.43% upside from the prior close. The broader analyst consensus is “Moderate Buy,” with an average target of $184.42.
• Okta beat quarterly expectations, reporting adjusted EPS of $1.05 versus $0.96 expected and revenue of $805 million versus $793 million expected; revenue rose 10.6% year over year.
• Shares opened at $205.36, near their 52-week high, while the stock’s elevated valuation and recent insider selling present potential risks despite strong institutional ownership and bullish AI-related growth prospects.

Okta (NASDAQ:OKTA - Get Free Report) had its price target raised by analysts at DA Davidson from $190.00 to $235.00 in a research note issued on Thursday, Benzinga reports. The firm presently has a "buy" rating on the stock. DA Davidson's price target points to a potential upside of 14.43% from the stock's previous close.

Other research analysts also recently issued research reports about the company. KeyCorp boosted their target price on Okta from $180.00 to $190.00 and gave the stock an "overweight" rating in a research note on Thursday, August 27th. Morgan Stanley lifted their price target on shares of Okta from $180.00 to $200.00 and gave the company an "overweight" rating in a report on Thursday, August 27th. Wells Fargo & Company upped their price objective on shares of Okta from $200.00 to $230.00 and gave the stock an "overweight" rating in a research report on Thursday. HSBC downgraded shares of Okta from a "buy" rating to a "hold" rating in a research note on Monday, July 6th. Finally, Cantor Fitzgerald boosted their target price on shares of Okta from $170.00 to $200.00 and gave the stock an "overweight" rating in a research note on Thursday, August 27th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-one have given a Buy rating and eleven have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $184.42.

Okta Price Performance

NASDAQ OKTA opened at $205.36 on Thursday. The business has a fifty day moving average price of $156.52 and a two-hundred day moving average price of $118.37. The stock has a market capitalization of $35.90 billion, a PE ratio of 123.71, a PEG ratio of 6.12 and a beta of 0.79. Okta has a fifty-two week low of $62.66 and a fifty-two week high of $207.20.

Okta (NASDAQ:OKTA - Get Free Report) last posted its quarterly 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 return on equity of 4.50% and a net margin of 9.63%.The company had revenue of $805.00 million during the quarter, compared to analysts' expectations of $793.00 million. During the same quarter in the previous year, the firm earned $0.91 EPS. Okta's revenue was up 10.6% on a year-over-year basis. Okta has set its FY 2027 guidance at 3.900-3.940 EPS and its Q3 2027 guidance at 0.920-0.940 EPS. As a group, sell-side analysts expect that Okta will post 1.92 earnings per share for the current year.

Insider Activity at Okta

In other Okta news, CEO Todd McKinnon sold 68,936 shares of the company's stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $146.62, for a total value of $10,107,396.32. Following the completion of the transaction, the chief executive officer directly owned 38,484 shares in the company, valued at approximately $5,642,524.08. This represents a 64.17% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric Kelleher sold 6,395 shares of the company's stock in a transaction that occurred on Friday, September 18th. The shares were sold at an average price of $183.58, for a total transaction of $1,173,994.10. Following the completion of the transaction, the insider owned 18,668 shares of the company's stock, valued at approximately $3,427,071.44. This trade represents a 25.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 157,880 shares of company stock worth $24,588,427 in the last quarter. 4.61% of the stock is owned by insiders.

Hedge Funds Weigh In On Okta

Hedge funds have recently modified their holdings of the business. Norges Bank bought a new position in Okta during the 4th quarter worth $175,193,000. Allspring Global Investments Holdings LLC increased its stake in shares of Okta by 71.9% in the first quarter. Allspring Global Investments Holdings LLC now owns 3,553,091 shares of the company's stock valued at $281,209,000 after buying an additional 1,485,963 shares during the period. Pictet Asset Management Holding SA raised its position in shares of Okta by 28.4% during the first quarter. Pictet Asset Management Holding SA now owns 2,490,681 shares of the company's stock worth $195,844,000 after acquiring an additional 550,328 shares during the last quarter. Jupiter Asset Management Ltd. raised its position in shares of Okta by 2,982.2% during the fourth quarter. Jupiter Asset Management Ltd. now owns 514,449 shares of the company's stock worth $44,484,000 after acquiring an additional 497,758 shares during the last quarter. Finally, Quantinno Capital Management LP lifted its stake in shares of Okta by 114.3% in the first quarter. Quantinno Capital Management LP now owns 746,009 shares of the company's stock worth $58,718,000 after acquiring an additional 397,951 shares during the period. Institutional investors and hedge funds own 86.64% of the company's stock.

Trending Headlines about Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Analysts raised targets and reiterated bullish ratings. Wells Fargo increased its price target to $230 from $200 and assigned an Overweight rating. Guggenheim raised its target to $227 while maintaining Buy, William Blair initiated coverage with Buy, and D.A. Davidson lifted its target to $235. The upgrades cite improved fundamentals, identity-governance demand, AI-agent opportunities and an expanding addressable market. Guggenheim raises Okta price target
• Positive Sentiment: AI-agent security remains the main growth catalyst. Okta introduced an AI agent runtime gateway and an “AI kill switch,” while forming the Blueprint Alliance with AWS and CrowdStrike. The initiatives are designed to manage agent identity, permissions and governance, potentially creating new monetization opportunities beyond traditional user-based identity products. Okta adds AI agent gateway and Blueprint Alliance
• Positive Sentiment: Partner adoption supports Okta’s platform strategy. Aembit announced support for Okta’s Cross App Access protocol, extending enterprise identity controls to AI agents and strengthening Okta’s ecosystem around secure agent-to-application access. Aembit supports Okta Cross App Access
• Neutral Sentiment: Oktane 2026 and management commentary are sustaining attention. CEO Todd McKinnon has emphasized balancing innovation with security as enterprises deploy AI agents. Investors are looking for evidence that the new products can accelerate revenue growth and produce meaningful customer adoption. CNBC interview with Okta CEO
• Negative Sentiment: Overbought conditions and valuation create downside risk. Okta’s RSI is above 70, signaling stretched momentum after the stock’s rally. Its elevated valuation leaves shares sensitive to profit-taking or disappointing AI execution. Insider Eric Kelleher also sold 6,395 shares for about $1.17 million under a pre-arranged Rule 10b5-1 plan, a relatively minor but potentially negative sentiment signal. Benzinga overbought stock report

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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