Barclays Issues Pessimistic Forecast for Okta (NASDAQ:OKTA) Stock Price

Key Points

• Barclays has reduced its price target for Okta's stock from $120.00 to $100.00, maintaining an "equal weight" rating on the stock, which suggests limited growth potential.
• Despite the downgrade from Barclays, some analysts have recently revised their ratings positively, with Wall Street Zen upgrading Okta to a "buy" and Evercore ISI increasing their price target to $130.00.
• Okta's stock is currently trading at $91.87, down 0.15 during midday trading, and has a market cap of $16.08 billion with significant volatility over the past year.

Okta (NASDAQ:OKTA - Get Free Report) had its price target dropped by stock analysts at Barclays from $120.00 to $100.00 in a report released on Monday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Barclays's price target points to a potential upside of 8.85% from the stock's current price.

A number of other equities analysts also recently issued reports on OKTA. Wall Street Zen upgraded Okta from a "hold" rating to a "buy" rating in a report on Sunday, August 3rd. JMP Securities reaffirmed a "market perform" rating on shares of Okta in a report on Wednesday, May 28th. Evercore ISI upped their price target on Okta from $122.00 to $130.00 and gave the company an "outperform" rating in a report on Wednesday, May 28th. Jefferies Financial Group lowered their price target on Okta from $130.00 to $105.00 and set a "hold" rating on the stock in a report on Thursday, July 24th. Finally, Royal Bank Of Canada decreased their price objective on Okta from $143.00 to $135.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 28th. Three investment analysts have rated the stock with a sell rating, fourteen have issued a hold rating and twenty-one have issued a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $118.06.

Okta Stock Performance

OKTA stock traded down $0.15 during midday trading on Monday, hitting $91.87. The company's stock had a trading volume of 255,865 shares, compared to its average volume of 3,575,843. The stock's 50-day moving average price is $96.51 and its 200 day moving average price is $102.65. The company has a quick ratio of 1.47, a current ratio of 1.47 and a debt-to-equity ratio of 0.05. Okta has a 1 year low of $70.56 and a 1 year high of $127.57. The stock has a market cap of $16.08 billion, a price-to-earnings ratio of 145.76, a PEG ratio of 4.45 and a beta of 0.80.

Okta (NASDAQ:OKTA - Get Free Report) last issued its quarterly earnings data on Tuesday, May 27th. The company reported $0.86 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.77 by $0.09. Okta had a return on equity of 2.79% and a net margin of 4.85%. The company had revenue of $688.00 million for the quarter, compared to the consensus estimate of $680.14 million. During the same quarter last year, the business posted $0.65 earnings per share. The firm's revenue was up 11.5% compared to the same quarter last year. On average, equities analysts forecast that Okta will post 0.42 EPS for the current year.

Insider Transactions at Okta

In related news, CFO Brett Tighe sold 10,000 shares of the business's stock in a transaction on Friday, July 18th. The stock was sold at an average price of $95.00, for a total value of $950,000.00. Following the completion of the sale, the chief financial officer directly owned 132,288 shares in the company, valued at $12,567,360. The trade was a 7.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Eric Robert Kelleher sold 16,018 shares of the business's stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $91.81, for a total value of $1,470,612.58. Following the completion of the sale, the insider owned 7,044 shares of the company's stock, valued at $646,709.64. This trade represents a 69.46% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 88,594 shares of company stock valued at $8,382,790. 5.68% of the stock is owned by insiders.

Hedge Funds Weigh In On Okta

Institutional investors have recently modified their holdings of the business. Vanguard Group Inc. lifted its stake in shares of Okta by 5.3% in the second quarter. Vanguard Group Inc. now owns 18,728,250 shares of the company's stock worth $1,872,263,000 after acquiring an additional 935,364 shares during the period. First Trust Advisors LP boosted its position in shares of Okta by 9.1% during the 2nd quarter. First Trust Advisors LP now owns 4,901,123 shares of the company's stock valued at $489,966,000 after purchasing an additional 407,087 shares in the last quarter. Massachusetts Financial Services Co. MA boosted its position in shares of Okta by 20.4% during the 2nd quarter. Massachusetts Financial Services Co. MA now owns 4,455,653 shares of the company's stock valued at $445,432,000 after purchasing an additional 755,709 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Okta by 11.1% during the 2nd quarter. Geode Capital Management LLC now owns 3,155,011 shares of the company's stock valued at $314,488,000 after purchasing an additional 314,525 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Okta by 76.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,748,847 shares of the company's stock valued at $289,234,000 after purchasing an additional 1,189,222 shares in the last quarter. Institutional investors and hedge funds own 86.64% of the company's stock.

About Okta

Okta, Inc operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Sign-On that enables users to access applications in the cloud or on-premises from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data; API Access Management enables organizations to secure APIs; Access Gateway enables organizations to extend Workforce Identity Cloud; and Okta Device Access enables end users to securely log in to devices with Okta credentials.

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