Okta, Inc. (NASDAQ:OKTA) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately positive: Forty-four brokerages give Okta a consensus “Moderate Buy” rating, with 28 buys, 13 holds, two sells and one strong buy. The average 12-month price target is $123.06.
• Okta beat quarterly expectations: The company reported adjusted EPS of $0.91 versus the $0.85 consensus estimate and revenue of $765 million, up 11.2% year over year and above estimates.
• Insiders have been selling shares: Insiders sold 167,847 shares worth roughly $22.0 million over the past quarter, while institutional investors own 86.64% of Okta’s stock.

Shares of Okta, Inc. (NASDAQ:OKTA - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the forty-four ratings firms that are currently covering the company, Marketbeat.com reports. Two analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, twenty-eight have issued a buy rating and one has assigned a strong buy rating to the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $123.0556.

Several research firms have weighed in on OKTA. Wells Fargo & Company boosted their target price on shares of Okta from $100.00 to $150.00 and gave the stock an "equal weight" rating in a research report on Monday, July 20th. Wall Street Zen lowered Okta from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Canaccord Genuity Group upped their price objective on Okta from $95.00 to $115.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. Morgan Stanley assumed coverage on shares of Okta in a research note on Monday, July 6th. They set a "neutral" rating on the stock. Finally, Arete Research set a $127.00 target price on shares of Okta and gave the company a "buy" rating in a report on Tuesday, May 26th.

Okta Stock Performance

NASDAQ:OKTA opened at $150.33 on Wednesday. The stock has a market capitalization of $26.13 billion, a P/E ratio of 108.94, a P/E/G ratio of 5.42 and a beta of 0.77. Okta has a fifty-two week low of $62.66 and a fifty-two week high of $157.00. The company's 50-day simple moving average is $134.40 and its 200-day simple moving average is $100.40.

Okta (NASDAQ:OKTA - Get Free Report) last released its quarterly earnings results on Thursday, May 28th. The company reported $0.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.85 by $0.06. Okta had a net margin of 8.24% and a return on equity of 4.15%. The business had revenue of $765.00 million for the quarter, compared to analyst estimates of $751.84 million. During the same period in the previous year, the company earned $0.86 earnings per share. The business's revenue for the quarter was up 11.2% on a year-over-year basis. Okta has set its FY 2027 guidance at 3.790-3.870 EPS and its Q2 2027 guidance at 0.950-0.970 EPS. On average, research analysts forecast that Okta will post 1.75 EPS for the current year.

Insider Buying and Selling at Okta

In other news, Director Shellye L. Archambeau sold 2,500 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $85.00, for a total transaction of $212,500.00. Following the transaction, the director owned 9,192 shares in the company, valued at $781,320. This trade represents a 21.38% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at 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 stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $114.10, for a total transaction of $453,775.70. Following the transaction, the insider directly owned 19,618 shares in the company, valued at approximately $2,238,413.80. The trade was a 16.86% decrease in their ownership of the stock. 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 quarter, insiders sold 167,847 shares of company stock worth $22,039,842. 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 modified their holdings of the business. MassMutual Private Wealth & Trust FSB boosted its position in Okta by 279.5% during the second 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. SHP Wealth Management purchased a new position in Okta in the 4th quarter worth approximately $27,000. Torren Management LLC purchased a new position in Okta in the 4th quarter worth approximately $32,000. V Square Quantitative Management LLC purchased a new position in Okta in the 4th quarter worth approximately $56,000. Finally, EFG International AG acquired a new position in shares of Okta during the 4th quarter worth approximately $61,000. 86.64% of the stock is owned by hedge funds and other institutional investors.

About Okta

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.

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