Okta (NASDAQ:OKTA) Price Target Raised to $245.00

Key Points

• Morgan Stanley raised Okta’s price target to $245 from $200 and maintained an “overweight” rating, implying approximately 20.4% upside from the prior close. The analyst consensus remains “Moderate Buy,” with an average target of $200.72.
• Okta exceeded quarterly expectations, reporting adjusted EPS of $1.05 versus $0.96 expected and revenue of $805 million versus $793 million expected; revenue increased 10.6% year over year.
• Shares have rallied sharply toward their 52-week high, but valuation remains elevated, while insiders sold roughly $34 million of stock over the past three months. Analysts remain divided over whether AI-agent security opportunities can offset concerns about slower growth and margin expansion.

Okta (NASDAQ:OKTA - Get Free Report) had its price objective hoisted by investment analysts at Morgan Stanley from $200.00 to $245.00 in a research note issued to investors on Tuesday, Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Morgan Stanley's target price would indicate a potential upside of 20.43% from the stock's previous close.

A number of other equities research analysts also recently weighed in on the company. BMO Capital Markets raised their price target on Okta from $187.00 to $230.00 and gave the company an "outperform" rating in a research report on Friday. JPMorgan Chase & Co. raised their price objective on Okta from $165.00 to $190.00 and gave the company an "overweight" rating in a report on Thursday, August 27th. Citigroup restated a "market outperform" rating on shares of Okta in a research report on Thursday. The Goldman Sachs Group increased their price target on shares of Okta from $126.00 to $203.00 and gave the company a "buy" rating in a research report on Friday, August 28th. Finally, Oppenheimer lifted their price target on shares of Okta from $190.00 to $227.00 and gave the stock an "outperform" rating in a research note on Thursday, September 24th. One analyst has rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $200.72.

Okta Stock Performance

Okta stock traded up $1.25 during midday trading on Tuesday, hitting $203.43. 1,254,993 shares of the company's stock were exchanged, compared to its average volume of 3,615,455. The company has a market cap of $35.56 billion, a P/E ratio of 122.68, a PEG ratio of 6.07 and a beta of 0.79. The stock has a 50-day moving average price of $159.69 and a two-hundred day moving average price of $120.93. Okta has a 52-week low of $62.66 and a 52-week high of $212.50.

Okta (NASDAQ:OKTA - Get Free Report) last issued its quarterly earnings results on Wednesday, August 26th. The company reported $1.05 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $805.00 million during the quarter, compared to the consensus estimate of $793.00 million. During the same quarter last year, the company posted $0.91 EPS. The company'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. As a group, sell-side analysts expect that Okta will post 1.92 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Todd McKinnon sold 68,936 shares of the firm's stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $146.62, for a total value of $10,107,396.32. Following the sale, the chief executive officer directly owned 38,484 shares of the company's stock, valued at $5,642,524.08. This trade represents a 64.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brett Tighe sold 41,251 shares of Okta stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $162.44, for a total value of $6,700,812.44. Following the completion of the sale, the chief financial officer owned 7,693 shares in the company, 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. Insiders have sold a total of 206,702 shares of company stock valued at $34,034,508 over the last three months. 4.61% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Eurizon Capital SGR S.p.A. purchased a new stake in Okta in the 4th quarter worth $3,122,000. Diversify Wealth Management LLC purchased a new stake in shares of Okta during the first quarter worth about $2,077,000. Torque Asset Management LLC raised its stake in Okta by 40.5% during the 4th quarter. Torque Asset Management LLC now owns 289,141 shares of the company's stock valued at $25,002,000 after purchasing an additional 83,337 shares during the period. Swiss National Bank lifted its holdings in Okta by 7.7% in the 1st quarter. Swiss National Bank now owns 497,300 shares of the company's stock worth $39,142,000 after purchasing an additional 35,700 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. lifted its holdings in Okta by 74.0% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 33,235 shares of the company's stock worth $2,874,000 after purchasing an additional 14,138 shares in the last quarter. Hedge funds and other institutional investors own 86.64% of the company's stock.

More Okta News

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Analysts raise targets after Oktane: Citizens JMP upgraded Okta to “Market Outperform” and lifted its price target from $180 to $225, citing AI-agent adoption, stronger demand, cross-selling opportunities and improved go-to-market execution. Citizens JMP raises Okta price target
• Positive Sentiment: Morgan Stanley and Bank of America see a larger AI opportunity: Analysts believe rising concerns about AI safety could accelerate demand for Okta’s identity controls and security products. Bank of America also raised its target, arguing that the AI opportunity may extend beyond Okta’s traditional market. Morgan Stanley on Okta AI safety demand
• Positive Sentiment: Product developments reinforce the investment narrative: Okta is building a shared architecture for agent-runtime security and positioning its identity platform to govern what AI agents can access and do. This could create a new growth avenue as companies deploy autonomous software agents. Okta agent runtime security architecture
• Neutral Sentiment: Valuation remains a key debate: Comparisons with CrowdStrike highlight Okta’s improving profitability and identity-management leadership, but also its slower growth profile. Investors are weighing whether AI-agent revenue can develop quickly enough to justify the stock’s elevated valuation. CrowdStrike versus Okta comparison
• Negative Sentiment: Bernstein remains cautious: Bernstein downgraded Okta to “Market Perform,” despite raising its price target, as analysts assess whether AI-driven demand can offset concerns about slowing margin expansion. The downgrade could limit upside after the stock’s substantial rally. Bernstein downgrades Okta

About Okta

Okta, Inc is an identity and access management company that helps organizations secure and manage access to applications, systems, devices and digital services. Its platform is designed to support employees, contractors, partners, customers and other users across cloud-based and on-premises environments.

Okta's products include single sign-on, multifactor authentication, lifecycle management, identity governance, privileged access and identity threat protection. Through its Workforce Identity Cloud and Customer Identity Cloud, the company provides tools for workforce access management and for integrating authentication and authorization capabilities into customer-facing applications.

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