Okta, Inc. $OKTA Stock Sold by Engineers Gate Manager LP

Key Points

• Engineers Gate Manager LP cut its Okta stake by 99.3% in the second quarter, selling 228,534 shares and retaining just 1,500 shares valued at approximately $205,000.
• Okta reported stronger-than-expected quarterly results, with EPS of $1.05 versus $0.96 expected and revenue of $805 million, up 10.6% year over year. The company is also expanding into AI-agent security, which could support future growth.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and $198.41 price target, but valuation and insider selling remain concerns. Okta trades at a high P/E ratio of 117.59, while executives have sold substantial shares under pre-arranged trading plans.

Engineers Gate Manager LP decreased its stake in shares of Okta, Inc. (NASDAQ:OKTA - Free Report) by 99.3% during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,500 shares of the company's stock after selling 228,534 shares during the period. Engineers Gate Manager LP's holdings in Okta were worth $205,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. SHP Wealth Management purchased a new stake in Okta during the fourth quarter valued at approximately $27,000. Washington Trust Advisors Inc. boosted its stake in shares of Okta by 64.2% during the 2nd quarter. Washington Trust Advisors Inc. now owns 197 shares of the company's stock worth $27,000 after acquiring an additional 77 shares during the last quarter. MassMutual Private Wealth & Trust FSB boosted its stake in shares of Okta by 279.5% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 296 shares of the company's stock worth $40,000 after acquiring an additional 218 shares during the last quarter. Assetmark Inc. grew its position in shares of Okta by 81.1% during the 1st quarter. Assetmark Inc. now owns 719 shares of the company's stock valued at $57,000 after acquiring an additional 322 shares during the period. Finally, SJS Investment Consulting Inc. increased its stake in shares of Okta by 1,265.5% in the 1st quarter. SJS Investment Consulting Inc. now owns 751 shares of the company's stock worth $59,000 after purchasing an additional 696 shares in the last quarter. Hedge funds and other institutional investors own 86.64% of the company's stock.

Okta News Roundup

Here are the key news stories impacting Okta this week:

• Positive Sentiment: AI-agent opportunity strengthens the growth story. Okta unveiled Agent SSO, runtime enforcement, an AI-agent gateway, lifecycle-management tools and an “AI kill switch.” The products are designed to secure and govern enterprise AI agents, potentially expanding Okta’s market beyond traditional identity software. BofA raises Okta price target on AI-agent positioning
• Positive Sentiment: Analyst support remains strong. BofA raised its price target to $220, while RBC, Wells Fargo, DA Davidson, Guggenheim and BMO also issued higher targets, generally citing Okta’s positioning in AI identity and the possibility of renewed growth. Analysts issue bullish signals on Okta
• Neutral Sentiment: Recent earnings were solid but not a new catalyst. Okta’s latest quarterly earnings and revenue exceeded consensus estimates, with revenue up 10.6% year over year. However, the conference did not include a major financial update, leaving investors without clear evidence of when AI-agent products will materially accelerate results.
• Negative Sentiment: Sell-the-news and valuation concerns are pressuring the stock. Okta’s shares had climbed sharply and were near recent highs, making them vulnerable to profit-taking. Mizuho retained a Neutral view pending proof that growth can sustainably reaccelerate, while Jefferies identified customer confusion as an adoption hurdle. The elevated valuation also leaves limited room for execution disappointments. Mizuho remains neutral on Okta
• Negative Sentiment: Insider selling adds a modest overhang. CEO Todd McKinnon sold 48,822 shares worth approximately $9.45 million, reducing his direct holdings by about 53%. The sale occurred under a pre-arranged Rule 10b5-1 plan, which reduces its significance but may still weigh on sentiment. SEC filing for Todd McKinnon stock sale

Analyst Ratings Changes

OKTA has been the topic of several analyst reports. Wall Street Zen downgraded Okta from a "buy" rating to a "hold" rating in a research report on Saturday. Capital One Financial set a $171.00 price objective on Okta and gave the stock an "overweight" rating in a research note on Thursday, July 16th. BMO Capital Markets lifted their price objective on Okta from $187.00 to $230.00 and gave the company an "outperform" rating in a research report on Friday. UBS Group boosted their price objective on Okta from $150.00 to $200.00 and gave the company a "buy" rating in a research note on Thursday, August 27th. Finally, Bank of America raised their target price on shares of Okta from $170.00 to $200.00 and gave the stock a "neutral" rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat.com, Okta currently has a consensus rating of "Moderate Buy" and a consensus price target of $198.41.

Okta Price Performance

Shares of OKTA opened at $195.19 on Monday. The firm has a market cap of $34.12 billion, a P/E ratio of 117.59, a price-to-earnings-growth ratio of 6.07 and a beta of 0.79. Okta, Inc. has a 1 year low of $62.66 and a 1 year high of $212.50. The company has a 50 day simple moving average of $158.62 and a two-hundred day simple moving average of $120.07.

Okta (NASDAQ:OKTA - Get Free Report) last released its earnings results on Wednesday, August 26th. The company reported $1.05 EPS for the quarter, topping the consensus estimate of $0.96 by $0.09. Okta had a net margin of 9.63% and a return on equity of 4.50%. The firm had revenue of $805.00 million for the quarter, compared to the consensus estimate of $793.00 million. During the same quarter in the previous year, the firm earned $0.91 earnings per share. The company'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. On average, sell-side analysts anticipate that Okta, Inc. will post 1.92 earnings per share for the current year.

Insider Activity

In related news, CFO Brett Tighe sold 41,251 shares of the firm's stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $162.44, for a total value of $6,700,812.44. Following the completion of the transaction, the chief financial officer directly owned 7,693 shares of the company's stock, valued at approximately $1,249,650.92. This trade represents a 84.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Todd McKinnon sold 68,936 shares of the business's stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $146.62, for a total transaction of $10,107,396.32. Following the completion of the sale, the chief executive officer owned 38,484 shares in the company, valued at $5,642,524.08. This represents a 64.17% 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. In the last ninety days, insiders sold 206,702 shares of company stock worth $34,034,508. 4.61% of the stock is currently owned by insiders.

Okta 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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