Okta (NASDAQ:OKTA) Price Target Raised to $230.00

Key Points

• Needham raised Okta’s price target to $230 from $200 and maintained a “buy” rating, implying 26.12% upside from the prior close.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and average target price of $176.68. Okta recently exceeded quarterly expectations, reporting $1.05 in EPS and $805 million in revenue.
• Insiders sold 151,485 shares worth approximately $23.4 million over the past 90 days, while institutional investors own 86.64% of the company’s stock.

Okta (NASDAQ:OKTA - Get Free Report) had its price target raised by analysts at Needham & Company LLC from $200.00 to $230.00 in a note issued to investors on Monday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Needham & Company LLC's target price would indicate a potential upside of 26.12% from the stock's previous close.

A number of other equities research analysts have also recently commented on the company. DA Davidson increased their target price on Okta from $165.00 to $190.00 and gave the company a "buy" rating in a report on Thursday, August 27th. HC Wainwright started coverage on Okta in a report on Monday, July 6th. They issued a "buy" rating for the company. Cantor Fitzgerald upped their price objective on Okta from $170.00 to $200.00 and gave the company an "overweight" rating in a research report on Thursday, August 27th. Citigroup reaffirmed a "market outperform" rating on shares of Okta in a research note on Thursday, August 27th. Finally, TD Cowen boosted their target price on shares of Okta from $160.00 to $175.00 and gave the company a "hold" rating in a research note on Thursday, August 27th. One investment analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and eleven have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $176.68.

Okta Stock Performance

Shares of NASDAQ OKTA opened at $182.37 on Monday. The company's 50-day moving average price is $153.56 and its 200 day moving average price is $115.77. Okta has a 52 week low of $62.66 and a 52 week high of $192.59. The stock has a market cap of $31.88 billion, a price-to-earnings ratio of 109.86, a PEG ratio of 5.67 and a beta of 0.79.

Okta (NASDAQ:OKTA - Get Free Report) last announced its quarterly earnings results on Wednesday, August 26th. The company reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.96 by $0.09. The company had revenue of $805.00 million for the quarter, compared to the consensus estimate of $793.00 million. Okta had a net margin of 9.63% and a return on equity of 4.50%. The company's revenue for the quarter was up 10.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.91 earnings per share. 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, research analysts expect that Okta will post 1.92 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Eric Kelleher sold 2,549 shares of Okta stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $168.55, for a total value of $429,633.95. Following the transaction, the insider directly owned 17,069 shares of the company's stock, valued at $2,876,979.95. The trade was a 12.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brett Tighe sold 41,251 shares of the business'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 sale, the chief financial officer owned 7,693 shares of the company's stock, valued at approximately $1,249,650.92. This represents a 84.28% decrease in their ownership of the stock. 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. In the last ninety days, insiders have sold 151,485 shares of company stock valued at $23,414,433. 4.61% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Okta

Large investors have recently modified their holdings of the stock. Junto Capital Management LP acquired a new stake in Okta in the second quarter valued at approximately $45,486,000. National Pension Service lifted its position in shares of Okta by 23.2% during the second quarter. National Pension Service now owns 43,893 shares of the company's stock worth $5,989,000 after purchasing an additional 8,257 shares in the last quarter. NewEdge Advisors LLC boosted its stake in shares of Okta by 521.5% in the second quarter. NewEdge Advisors LLC now owns 2,828 shares of the company's stock valued at $386,000 after purchasing an additional 2,373 shares during the period. GFG Capital LLC boosted its stake in shares of Okta by 12.0% in the second quarter. GFG Capital LLC now owns 33,971 shares of the company's stock valued at $4,635,000 after purchasing an additional 3,639 shares during the period. Finally, Kranot Hishtalmut Le Morim Tichoniim Havera Menahelet LTD acquired a new stake in Okta during the 2nd quarter valued at $3,444,000. Institutional investors and hedge funds own 86.64% of the company's stock.

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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