California State Teachers Retirement System Purchases 36,014,770 Shares of Okta, Inc. $OKTA

Key Points

• California State Teachers Retirement System dramatically increased its Okta stake by purchasing 36.0 million additional shares, bringing its total ownership to 36.3 million shares, or approximately 20.87% of the company, valued at nearly $4.95 billion.
• Okta reported stronger-than-expected quarterly results, with earnings of $1.05 per share and revenue of $805 million; revenue rose 10.6% year over year. The stock recently traded at $172.74, near its 52-week high.
• Wall Street sentiment is broadly positive, with analysts raising several price targets to $200 and assigning the stock a consensus “Moderate Buy” rating, although insiders have sold 155,376 shares worth about $23.7 million over the past three months.

California State Teachers Retirement System increased its position in shares of Okta, Inc. (NASDAQ:OKTA - Free Report) by 13,755.2% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 36,276,597 shares of the company's stock after purchasing an additional 36,014,770 shares during the period. California State Teachers Retirement System owned approximately 20.87% of Okta worth $4,949,942,000 at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in the company. First Trust Advisors LP lifted its stake in Okta by 28.2% in the fourth quarter. First Trust Advisors LP now owns 6,030,090 shares of the company's stock worth $521,422,000 after purchasing an additional 1,326,051 shares during the last quarter. Allspring Global Investments Holdings LLC boosted its position in shares of Okta by 71.9% during the first quarter. Allspring Global Investments Holdings LLC now owns 3,553,091 shares of the company's stock valued at $281,209,000 after buying an additional 1,485,963 shares during the period. Geode Capital Management LLC grew its stake in shares of Okta by 1.8% during the fourth quarter. Geode Capital Management LLC now owns 3,261,303 shares of the company's stock valued at $281,246,000 after buying an additional 57,605 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Okta by 2.9% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,495,389 shares of the company's stock valued at $215,776,000 after buying an additional 69,653 shares during the last quarter. Finally, Pictet Asset Management Holding SA raised its holdings in shares of Okta by 28.4% in the first quarter. Pictet Asset Management Holding SA now owns 2,490,681 shares of the company's stock worth $195,844,000 after buying an additional 550,328 shares during the period. 86.64% of the stock is currently owned by institutional investors.

Okta Stock Up 3.1%

Shares of NASDAQ:OKTA opened at $172.74 on Thursday. The business's 50 day moving average is $148.34 and its 200 day moving average is $110.38. The stock has a market cap of $30.20 billion, a P/E ratio of 104.06, a price-to-earnings-growth ratio of 5.21 and a beta of 0.79. Okta, Inc. has a 52-week low of $62.66 and a 52-week high of $174.85.

Okta (NASDAQ:OKTA - Get Free Report) last issued its earnings results on Wednesday, August 26th. The company reported $1.05 earnings per share 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 business had revenue of $805.00 million during the quarter, compared to analyst estimates of $793.00 million. During the same period in the previous year, the company posted $0.91 EPS. Okta's revenue 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. On average, sell-side analysts anticipate that Okta, Inc. will post 1.92 EPS for the current fiscal year.

Insider Transactions at Okta

In other Okta news, insider Larissa Schwartz sold 2,463 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $120.00, for a total transaction of $295,560.00. Following the transaction, the insider directly owned 25,241 shares in the company, valued at $3,028,920. This represents a 8.89% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Todd McKinnon sold 68,936 shares of the firm's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $146.62, for a total transaction of $10,107,396.32. Following the transaction, the chief executive officer directly owned 38,484 shares in the company, valued at $5,642,524.08. This trade represents a 64.17% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 155,376 shares of company stock valued at $23,734,135. Insiders own 4.61% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the company. Jefferies Financial Group raised their price target on Okta from $170.00 to $200.00 and gave the stock a "buy" rating in a research note on Thursday, August 27th. Bank of America raised Okta from an "underperform" rating to a "neutral" rating and upped their price objective for the company from $75.00 to $170.00 in a research report on Thursday, August 27th. Needham & Company LLC boosted their target price on shares of Okta from $140.00 to $200.00 and gave the company a "buy" rating in a research note on Thursday, August 27th. Morgan Stanley upped their price target on shares of Okta from $180.00 to $200.00 and gave the stock an "overweight" rating in a report on Thursday, August 27th. Finally, Truist Financial reaffirmed a "buy" rating and issued a $200.00 price target (up from $165.00) on shares of Okta in a research note on Thursday, August 27th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $172.92.

Okta Company Profile

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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