Okta (NASDAQ:OKTA) Price Target Raised to $195.00 at Royal Bank Of Canada

Key Points

• Royal Bank of Canada raised Okta’s price target to $195 from $166 and maintained an “outperform” rating, implying approximately 19% upside from the reported share price.
• Okta’s latest quarterly results exceeded expectations, with adjusted EPS of $1.05 versus $0.96 expected and revenue of $805 million, up 10.6% year over year. Management also raised its fiscal 2027 outlook, supported by growing demand for AI-agent identity and security products.
• Analyst sentiment remains favorable, with Okta carrying a “Moderate Buy” consensus rating and an average price target of $164.57, although the stock’s elevated valuation and recent insider selling remain considerations.

Okta (NASDAQ:OKTA - Get Free Report) had its price target hoisted by investment analysts at Royal Bank Of Canada from $166.00 to $195.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Royal Bank Of Canada's price target would indicate a potential upside of 19.36% from the stock's current price.

Several other research analysts have also recently issued reports on the company. Oppenheimer upped their price target on Okta from $125.00 to $170.00 and gave the company an "outperform" rating in a report on Tuesday, August 11th. Morgan Stanley raised their price objective on Okta from $180.00 to $200.00 and gave the stock an "overweight" rating in a research note on Thursday. DA Davidson lifted their target price on Okta from $165.00 to $190.00 and gave the stock a "buy" rating in a report on Thursday. Jefferies Financial Group set a $200.00 target price on Okta in a research report on Thursday. Finally, Sanford C. Bernstein reaffirmed an "outperform" rating and set a $143.00 target price on shares of Okta in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $164.57.

Okta Stock Performance

NASDAQ OKTA traded up $28.95 on Thursday, reaching $163.37. The company's stock had a trading volume of 5,217,608 shares, compared to its average volume of 3,485,778. Okta has a twelve month low of $62.66 and a twelve month high of $168.50. The firm's 50 day moving average is $139.27 and its two-hundred day moving average is $104.50. The stock has a market cap of $28.40 billion, a PE ratio of 119.13, a PEG ratio of 4.70 and a beta of 0.77.

Okta (NASDAQ:OKTA - Get Free Report) last released 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 8.24% and a return on equity of 4.15%. The business had revenue of $805.00 million for the quarter, compared to the consensus estimate of $793.00 million. During the same period in the previous year, the firm earned $0.91 EPS. The business's revenue for the quarter 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. Equities research analysts anticipate that Okta will post 1.75 EPS for the current fiscal year.

Insider Activity

In other Okta news, insider Eric Robert Kelleher sold 3,977 shares of the business's stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $114.10, for a total transaction of $453,775.70. Following the sale, the insider directly owned 19,618 shares of the company's stock, valued at $2,238,413.80. The trade was a 16.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 2,463 shares of the 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 completion of the sale, 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 165,347 shares of company stock valued at $21,827,342 in the last 90 days. Company insiders own 4.61% of the company's stock.

Institutional Investors Weigh In On Okta

Several hedge funds have recently bought and sold shares of OKTA. Washington Trust Advisors Inc. grew its stake in Okta by 64.2% during the 2nd quarter. Washington Trust Advisors Inc. now owns 197 shares of the company's stock valued at $27,000 after acquiring an additional 77 shares in the last quarter. MassMutual Private Wealth & Trust FSB lifted its position in shares of Okta by 279.5% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 296 shares of the company's stock worth $40,000 after purchasing an additional 218 shares in the last quarter. SHP Wealth Management purchased a new stake in shares of Okta in the fourth quarter worth approximately $27,000. Torren Management LLC acquired a new stake in shares of Okta during the fourth quarter worth approximately $32,000. Finally, EFG International AG acquired a new stake in shares of Okta during the fourth quarter worth approximately $61,000. 86.64% of the stock is owned by hedge funds and other institutional investors.

Okta News Roundup

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Quarterly results exceeded expectations: Okta reported adjusted EPS of $1.05 versus the $0.96 consensus estimate, while revenue rose 10.6% year over year to $805 million, ahead of the $793 million forecast. Okta quarterly earnings report
• Positive Sentiment: Raised outlook: Management lifted fiscal 2027 revenue guidance to approximately $3.216 billion-$3.226 billion, or 10%-11% growth. Third-quarter revenue guidance of $813 million-$817 million and EPS guidance of $0.92-$0.94 also topped Wall Street expectations. Okta lifts full-year outlook
• Positive Sentiment: AI-related demand is strengthening the growth narrative: Okta said AI agents are creating new identity and security requirements, with new products contributing meaningfully to bookings. Investors view AI-agent security as a potentially large new market. Okta CEO discusses AI agent security
• Positive Sentiment: Analyst support increased: KeyCorp raised its target to $190 and assigned an Overweight rating; BTIG raised its target to $187 and reiterated Buy; and Needham and Cantor Fitzgerald raised targets to $200 with Buy or Overweight ratings. These revisions signal greater confidence in Okta’s growth and fundamentals. Needham raises Okta price target
• Neutral Sentiment: Valuation remains a consideration: With Okta trading near $134 and at a high earnings multiple, the stock’s roughly $23 billion market capitalization leaves less room for execution disappointments despite the improved outlook. Okta buy thesis and margin for error

About Okta

Okta, Inc is a publicly traded provider of identity and access management solutions, headquartered in San Francisco, California. Founded in 2009 by Todd McKinnon and Frederic Kerrest, the company completed its initial public offering in April 2017. Under the leadership of McKinnon as chief executive officer and Kerrest as chief operating officer, Okta has grown into a leading vendor in the cybersecurity space, focusing on secure user authentication, single sign-on and lifecycle management for digital identities.

At the core of Okta's offering is the Okta Identity Cloud, a suite of cloud-native services that enable organizations to manage user access across web and mobile applications, on-premises systems and APIs.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source