Okta, Inc. (NASDAQ:OKTA) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Okta has a consensus analyst rating of “Moderate Buy” from 40 covering firms, with 29 buy ratings and an average 12-month price target of about $102.44.
• The company beat fiscal Q1 earnings and revenue estimates, reporting $0.91 EPS on $765 million in revenue, and also raised guidance above Wall Street expectations for both Q2 and full-year FY2027.
• Investor sentiment has been helped by optimism around AI-agent identity management, which management says could be a major growth opportunity for Okta’s cybersecurity platform.

Shares of Okta, Inc. (NASDAQ:OKTA - Get Free Report) have earned a consensus rating of "Moderate Buy" from the forty ratings firms that are currently covering the company, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, nine have given a hold recommendation, twenty-nine have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $102.4412.

OKTA has been the topic of a number of recent research reports. Wolfe Research assumed coverage on Okta in a research report on Thursday, April 16th. They issued an "outperform" rating on the stock. Jefferies Financial Group cut their price target on Okta from $125.00 to $105.00 and set a "buy" rating on the stock in a research note on Monday, March 2nd. Raymond James Financial upgraded Okta from a "market perform" rating to an "outperform" rating and set a $85.00 price target on the stock in a report on Thursday, April 16th. KeyCorp lifted their price objective on Okta from $95.00 to $103.00 and gave the stock an "overweight" rating in a research report on Monday, May 18th. Finally, BTIG Research boosted their price objective on Okta from $90.00 to $105.00 and gave the stock a "buy" rating in a report on Thursday, May 21st.

More Okta News

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Okta beat Wall Street expectations on both earnings and revenue, posting $0.91 in non-GAAP EPS versus the $0.85 consensus and $765 million in revenue versus $751.9 million expected. Okta (OKTA) Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management also raised guidance above analyst forecasts, with Q2 FY2027 EPS guidance of $0.95-$0.97 versus $0.84 expected and FY2027 EPS guidance of $3.79-$3.87 versus $3.36 expected. Compared to Estimates, Okta (OKTA) Q1 Earnings: A Look at Key Metrics
• Positive Sentiment: Investors also appear encouraged by commentary around AI-agent identity management, which management says is creating a large opportunity for Okta’s cybersecurity platform. Okta shares rise on earnings beat and AI-agent opportunity
• Neutral Sentiment: Several brokerages turned more constructive ahead of the report, including a JPMorgan price-target hike to $114 and an Arete upgrade to Buy, which helped support sentiment into earnings. JPMorgan price target raise / Arete upgrade coverage

Okta Trading Up 5.8%

Shares of OKTA stock opened at $94.72 on Friday. Okta has a 1 year low of $62.66 and a 1 year high of $107.84. The firm's 50 day moving average is $79.01 and its 200-day moving average is $82.69. The firm has a market capitalization of $16.76 billion, a price-to-earnings ratio of 72.31, a PEG ratio of 3.49 and a beta of 0.59.

Okta (NASDAQ:OKTA - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The company reported $0.91 earnings per share for the quarter, beating analysts' consensus estimates of $0.85 by $0.06. Okta had a net margin of 8.05% and a return on equity of 4.18%. The business had revenue of $765.00 million during the quarter, compared to analyst estimates of $751.84 million. During the same quarter last year, the business posted $0.86 earnings per share. Okta's revenue for the quarter was up 11.2% compared to the same quarter last year. 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, equities research analysts forecast that Okta will post 1.61 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Eric Robert Kelleher sold 16,818 shares of the stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of $80.00, for a total value of $1,345,440.00. Following the transaction, the insider directly owned 15,470 shares in the company, valued at $1,237,600. This represents a 52.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Larissa Schwartz sold 6,377 shares of the firm's stock in a transaction that occurred on Tuesday, April 7th. The shares were sold at an average price of $79.75, for a total transaction of $508,565.75. Following the completion of the transaction, the insider directly owned 54,825 shares in the company, valued at approximately $4,372,293.75. The trade was a 10.42% 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. In the last ninety days, insiders have sold 70,884 shares of company stock worth $5,625,648. 4.61% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in OKTA. Norges Bank bought a new position in shares of Okta in the 4th quarter worth $175,193,000. Allspring Global Investments Holdings LLC increased its holdings in Okta by 71.9% in 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 purchasing an additional 1,485,963 shares during the last quarter. 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 valued at $521,422,000 after buying an additional 1,326,051 shares during the period. Vanguard Group Inc. boosted its holdings in Okta by 5.7% during the third quarter. Vanguard Group Inc. now owns 19,803,227 shares of the company's stock worth $1,815,956,000 after buying an additional 1,074,977 shares during the last quarter. Finally, Alyeska Investment Group L.P. boosted its holdings in Okta by 276.9% during the third quarter. Alyeska Investment Group L.P. now owns 1,403,499 shares of the company's stock worth $128,701,000 after buying an additional 1,031,083 shares during the last quarter. Institutional investors and hedge funds own 86.64% of the company's stock.

Okta Company Profile

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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