Okta (NASDAQ:OKTA) Stock Price Expected to Rise, TD Cowen Analyst Says

Key Points

• TD Cowen raised Okta’s price target to $175 from $160 but maintained a “hold” rating, implying 2.59% upside from the prior close. Other analysts also lifted targets, with Okta carrying a “Moderate Buy” consensus rating and a $166.16 average target.
• Okta exceeded quarterly expectations, reporting $1.05 in EPS versus $0.96 expected and $805 million in revenue versus roughly $793 million anticipated. Revenue rose 10.6% year over year, while management raised its fiscal 2027 revenue guidance.
• Shares surged to $170.59 during Thursday trading, near the 52-week high of $170.99. Despite strong institutional ownership of 86.64%, insiders sold 165,347 shares worth about $21.8 million over the past three months.

Okta (NASDAQ:OKTA - Get Free Report) had its target price increased by stock analysts at TD Cowen from $160.00 to $175.00 in a research note issued on Thursday,Benzinga reports. The firm presently has a "hold" rating on the stock. TD Cowen's price target would indicate a potential upside of 2.59% from the stock's previous close.

Other analysts have also recently issued research reports about the stock. BTIG Research raised their target price on shares of Okta from $167.00 to $187.00 and gave the stock a "buy" rating in a research note on Thursday. Oppenheimer raised their price target on shares of Okta from $170.00 to $190.00 and gave the stock an "outperform" rating in a research report on Thursday. Capital One Financial set a $171.00 price objective on shares of Okta and gave the company an "overweight" rating in a report on Thursday, July 16th. DA Davidson increased their target price on shares of Okta from $165.00 to $190.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, KeyCorp raised their target price on shares of Okta from $180.00 to $190.00 and gave the stock an "overweight" rating in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $166.16.

Okta Stock Performance

Okta stock traded up $36.16 during midday trading on Thursday, reaching $170.59. 8,078,619 shares of the company's stock were exchanged, compared to its average volume of 3,507,806. Okta has a 52 week low of $62.66 and a 52 week high of $170.99. The firm has a market cap of $29.65 billion, a price-to-earnings ratio of 123.41, a P/E/G ratio of 4.70 and a beta of 0.77. The stock's 50-day simple moving average is $139.27 and its 200 day simple moving average is $104.50.

Okta (NASDAQ:OKTA - Get Free Report) last released its quarterly earnings data 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. Okta had a return on equity of 4.15% and a net margin of 8.24%.The firm had revenue of $805.00 million for the quarter, compared to analyst estimates of $793.00 million. During the same quarter in the prior year, the company earned $0.91 earnings per share. The business's revenue for the quarter 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 forecast that Okta will post 1.75 earnings per share for the current year.

Insider Activity at Okta

In other news, insider Larissa Schwartz sold 24,971 shares of Okta stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $134.13, for a total transaction of $3,349,360.23. Following the transaction, the insider owned 23,477 shares in the company, valued at approximately $3,148,970.01. The trade was a 51.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric Robert Kelleher sold 3,977 shares of the company's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $114.10, for a total value of $453,775.70. Following the completion of the sale, the insider owned 19,618 shares in the company, valued at $2,238,413.80. This trade represents a 16.86% 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 have sold a total of 165,347 shares of company stock valued at $21,827,342 over the last three months. 4.61% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Okta

Several hedge funds and other institutional investors have recently bought and sold shares of OKTA. Integrated Wealth Concepts LLC bought a new stake in shares of Okta during the 1st quarter valued at about $225,000. NewEdge Advisors LLC increased its holdings in Okta by 853.4% in the first quarter. NewEdge Advisors LLC now owns 5,530 shares of the company's stock worth $582,000 after purchasing an additional 4,950 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in Okta in the second quarter valued at approximately $244,000. Invesco Ltd. lifted its stake in Okta by 34.1% in the second quarter. Invesco Ltd. now owns 430,844 shares of the company's stock valued at $43,071,000 after buying an additional 109,614 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its holdings in shares of Okta by 122.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,621 shares of the company's stock worth $162,000 after buying an additional 893 shares in the last quarter. Institutional investors and hedge funds own 86.64% of the company's stock.

Okta News Roundup

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Quarterly beat and higher guidance: Okta reported adjusted earnings of $1.05 per share versus the $0.96 consensus and revenue of $805 million versus expectations of approximately $793 million. Revenue increased 10.6% year over year. Management raised fiscal 2027 revenue guidance to roughly $3.216 billion-$3.226 billion, from $3.19 billion-$3.21 billion previously, and forecast third-quarter revenue of $813 million-$817 million, above analyst estimates. CNBC earnings report
• Positive Sentiment: Core identity momentum: Management highlighted stronger identity bookings, record non-fourth-quarter bookings and growing contributions from newer products. The earnings call suggested core identity growth is currently a more dependable driver than monetization of AI-specific offerings. Zacks earnings-call analysis
• Positive Sentiment: AI-related demand: Customers are investing more in identity and security controls as AI adoption creates new risks. Okta also cited traction for AI-agent security and key AI-related deals, supporting the possibility of a significant future market opportunity. CNBC cybersecurity rally report
• Positive Sentiment: Broad analyst support: Oppenheimer, RBC, Morgan Stanley, Truist, Needham, Cantor Fitzgerald, KeyCorp, BTIG and DA Davidson all raised price targets, generally to $187-$200, while maintaining positive ratings. Bank of America upgraded Okta from “underperform” to “neutral” with a $170 target. Benzinga analyst-revisions report
• Neutral Sentiment: AI opportunity remains early: Okta’s AI-agent security business is promising but is not yet a major revenue contributor, leaving future monetization dependent on product adoption and execution.
• Neutral Sentiment: Reports said Palo Alto Networks previously held acquisition discussions with Okta, but the talks stalled over valuation; there is no indication of a current transaction. Yahoo Finance acquisition report

Okta Company Profile

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.

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