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

Key Points

• Analysts assigned Okta a consensus rating of "Moderate Buy" from 39 analysts (26 buy, 11 hold, 2 sell) with an average 12‑month target of $103.25.
• Okta reported quarterly EPS of $0.90 versus $0.85 expected and revenue of $761.0M (up 11.6% YoY), and issued FY2027 guidance of 3.740–3.820 EPS and Q1 2027 guidance of 0.840–0.860 EPS.
• Insiders sold 67,466 shares worth $5.51M last quarter (including the CRO’s sale of 23,304 shares), even as the board authorized a $1.00 billion share buyback (up to ~6.8% of shares outstanding).

Shares of Okta, Inc. (NASDAQ:OKTA - Get Free Report) have been given a consensus rating of "Moderate Buy" by the thirty-nine analysts that are presently covering the company, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and twenty-six have given a buy rating to the company. The average 12-month target price among analysts that have covered the stock in the last year is $103.25.

A number of research firms have commented on OKTA. Needham & Company LLC cut their price target on shares of Okta from $110.00 to $90.00 and set a "buy" rating for the company in a research note on Thursday, March 5th. Canaccord Genuity Group cut their price target on shares of Okta from $120.00 to $95.00 and set a "buy" rating for the company in a research note on Thursday, March 5th. Oppenheimer cut their price target on shares of Okta from $120.00 to $110.00 and set an "outperform" rating for the company in a research note on Thursday, March 5th. JPMorgan Chase & Co. boosted their price target on shares of Okta from $102.00 to $103.00 and gave the stock an "overweight" rating in a research note on Thursday, March 5th. Finally, Wells Fargo & Company began coverage on shares of Okta in a research note on Tuesday, March 3rd. They issued an "equal weight" rating and a $76.00 price target for the company.

Insider Transactions at Okta

In other news, CRO Jonathan James Addison sold 23,304 shares of the business's stock in a transaction that occurred on Wednesday, March 25th. The shares were sold at an average price of $77.79, for a total value of $1,812,818.16. Following the completion of the sale, the executive directly owned 4,364 shares in the company, valued at approximately $339,475.56. The trade was a 84.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Larissa Schwartz sold 1,836 shares of the business's stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $79.89, for a total transaction of $146,678.04. Following the completion of the sale, the insider owned 79,422 shares of the company's stock, valued at approximately $6,345,023.58. The trade was a 2.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 67,466 shares of company stock worth $5,514,023. Corporate insiders own 5.68% of the company's stock.

Institutional Investors Weigh In On Okta

A number of hedge funds have recently made changes to their positions in OKTA. Root Financial Partners LLC bought a new stake in shares of Okta in the 3rd quarter worth approximately $26,000. Elevation Wealth Partners LLC lifted its holdings in shares of Okta by 825.0% in the 4th quarter. Elevation Wealth Partners LLC now owns 296 shares of the company's stock worth $26,000 after acquiring an additional 264 shares during the last quarter. Promus Capital LLC bought a new stake in shares of Okta in the 2nd quarter worth approximately $27,000. SHP Wealth Management bought a new stake in Okta during the 4th quarter valued at $27,000. Finally, Torren Management LLC bought a new stake in Okta during the 4th quarter valued at $32,000. 86.64% of the stock is currently owned by institutional investors.

Okta Trading Down 4.2%

Shares of NASDAQ:OKTA opened at $76.04 on Thursday. The company has a 50 day moving average of $79.77 and a 200 day moving average of $85.30. The stock has a market cap of $13.45 billion, a P/E ratio of 58.05, a P/E/G ratio of 3.14 and a beta of 0.76. Okta has a 12 month low of $68.77 and a 12 month high of $127.57.

Okta (NASDAQ:OKTA - Get Free Report) last issued its quarterly earnings data on Wednesday, March 4th. The company reported $0.90 EPS for the quarter, beating the consensus estimate of $0.85 by $0.05. Okta had a net margin of 8.05% and a return on equity of 4.18%. The company had revenue of $761.00 million during the quarter, compared to analysts' expectations of $749.87 million. During the same quarter in the previous year, the company earned $0.78 earnings per share. Okta's revenue for the quarter was up 11.6% on a year-over-year basis. Okta has set its FY 2027 guidance at 3.740-3.820 EPS and its Q1 2027 guidance at 0.840-0.860 EPS. On average, equities analysts forecast that Okta will post 0.42 earnings per share for the current fiscal year.

Okta announced that its Board of Directors has authorized a share buyback program on Monday, January 5th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to purchase up to 6.8% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's board believes its stock is undervalued.

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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