Okta (NASDAQ:OKTA) Stock Rating Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Okta to “Hold” from “Buy,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $201.10.
• Okta exceeded quarterly expectations, reporting $1.05 in EPS versus the $0.96 consensus and $805 million in revenue, up 10.6% year over year.
• Shares opened at $232.13, near their 52-week high, while insiders sold roughly $23.9 million of stock over the past three months, highlighting valuation and insider-selling risks.

Okta (NASDAQ:OKTA - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Monday, Wall Street Zen reports.

Other analysts have also recently issued reports about the stock. Piper Sandler raised their price target on shares of Okta from $105.00 to $160.00 and gave the stock a "neutral" rating in a report on Thursday, August 27th. New Street Research set a $235.00 price objective on shares of Okta in a research report on Thursday, September 24th. Roth Capital upped their price objective on shares of Okta from $155.00 to $235.00 and gave the company a "buy" rating in a research note on Thursday, September 24th. Oppenheimer increased their target price on shares of Okta from $190.00 to $227.00 and gave the stock an "outperform" rating in a research report on Thursday, September 24th. Finally, Cantor Fitzgerald increased their target price on shares of Okta from $170.00 to $200.00 and gave the stock an "overweight" rating in a research report on Thursday, August 27th. One analyst has rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $201.10.

Okta Stock Performance

NASDAQ:OKTA opened at $232.13 on Monday. The business's fifty day moving average price is $173.68 and its 200 day moving average price is $129.61. The firm has a market capitalization of $40.58 billion, a price-to-earnings ratio of 139.84, a PEG ratio of 7.22 and a beta of 0.73. Okta has a 1-year low of $62.66 and a 1-year high of $232.98.

Okta (NASDAQ:OKTA - Get Free Report) last announced its quarterly earnings data 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 firm had revenue of $805.00 million during the quarter, compared to analyst estimates of $793.00 million. During the same period last year, the company posted $0.91 EPS. The business's quarterly revenue 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. Equities analysts forecast that Okta will post 1.92 earnings per share for the current year.

Insider Activity

In related news, CEO Todd McKinnon sold 48,822 shares of the stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $193.48, for a total value of $9,446,080.56. Following the transaction, the chief executive officer owned 44,029 shares in the company, valued at approximately $8,518,730.92. This represents a 52.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible 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 firm'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 transaction, the insider directly owned 18,668 shares in the company, valued at approximately $3,427,071.44. The trade was a 25.52% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 137,766 shares of company stock worth $23,927,112 in the last three months. 4.61% of the stock is owned by insiders.

Institutional Trading of Okta

Several large investors have recently added to or reduced their stakes in OKTA. Versant Capital Management Inc raised its holdings in shares of Okta by 11.9% during the 3rd quarter. Versant Capital Management Inc now owns 563 shares of the company's stock valued at $118,000 after purchasing an additional 60 shares in the last quarter. Washington Trust Advisors Inc. lifted its stake in shares of Okta by 64.2% in the 2nd quarter. Washington Trust Advisors Inc. now owns 197 shares of the company's stock valued at $27,000 after purchasing an additional 77 shares during the last quarter. Burkett Financial Services LLC bought a new stake in Okta in the third quarter worth $26,000. CX Institutional boosted its holdings in Okta by 5.1% in the second quarter. CX Institutional now owns 2,633 shares of the company's stock worth $359,000 after purchasing an additional 127 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its holdings in Okta by 10.7% in the first quarter. EverSource Wealth Advisors LLC now owns 1,333 shares of the company's stock worth $105,000 after purchasing an additional 129 shares in the last quarter. 86.64% of the stock is owned by institutional investors.

Key Headlines Impacting Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Okta’s latest quarterly results showed approximately 11% revenue growth, 17% growth in remaining performance obligations and 14% growth in current remaining performance obligations. Management also raised full-year free-cash-flow guidance to $910 million–$930 million, supporting the view that growth is translating into stronger cash generation. Okta second-quarter fiscal 2027 results
• Positive Sentiment: Investors are viewing Okta as a potential beneficiary of enterprise AI adoption. The company is positioning identity, governance and runtime controls as essential for securing AI agents, while its Blueprint Alliance with technology and cybersecurity partners strengthens that strategic narrative. Blueprint Alliance announcement
• Positive Sentiment: Okta’s push for phishing-resistant authentication, including its partnership with Yubico, gives the company additional exposure to growing concerns about AI-enhanced phishing attacks and passwordless security. Okta phishing-resistant authentication coverage
• Neutral Sentiment: Amerx initiated coverage with a Hold rating, while recent institutional activity was mixed: several large investors added shares, but UBS and Norges Bank reduced positions. Amerx Okta coverage
• Negative Sentiment: Valuation and insider activity remain risks. OKTA has gained sharply year to date, while the reported median analyst price target of $120 is well below the recent trading level. Insiders have made substantially more sales than purchases over the past six months, including selling by CEO Todd McKinnon and CFO Brett Tighe.

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.

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.