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

Key Points

• Okta, Inc. has received a consensus rating of "Moderate Buy" from 37 analysts, with a projected average price target of $118.75 for the next 12 months.
• Insider transactions indicate significant selling activity, with CEO Todd Mckinnon reducing his stake by 60.44% after selling over 31,000 shares for approximately $3 million.
• In Q1, Okta reported earnings of $0.86 per share, exceeding estimates, and achieved a revenue of $688 million, up 11.5% year-over-year.

Shares of Okta, Inc. (NASDAQ:OKTA - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the thirty-seven analysts that are presently covering the stock, MarketBeat reports. Three investment analysts have rated the stock with a sell recommendation, twelve have given a hold recommendation and twenty-two have issued a buy recommendation on the company. The average 12-month price objective among brokers that have covered the stock in the last year is $118.75.

Several analysts have issued reports on OKTA shares. Wall Street Zen raised shares of Okta from a "hold" rating to a "buy" rating in a research report on Sunday, August 3rd. BMO Capital Markets set a $132.00 price target on shares of Okta and gave the stock a "market perform" rating in a research report on Wednesday, May 28th. UBS Group dropped their price target on shares of Okta from $150.00 to $130.00 and set a "buy" rating on the stock in a research report on Wednesday, May 28th. Arete Research raised shares of Okta to a "strong sell" rating and set a $83.00 price target on the stock in a research report on Monday, July 7th. Finally, The Goldman Sachs Group upped their price target on shares of Okta from $123.00 to $137.00 and gave the stock a "buy" rating in a research report on Wednesday, May 28th.

Insider Buying and Selling

In other news, CEO Todd Mckinnon sold 31,592 shares of the stock in a transaction dated Monday, July 21st. The shares were sold at an average price of $95.30, for a total value of $3,010,717.60. Following the transaction, the chief executive officer directly owned 20,682 shares of the company's stock, valued at $1,970,994.60. This represents a 60.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Brett Tighe sold 10,000 shares of the stock in a transaction dated Friday, July 18th. The shares were sold at an average price of $95.00, for a total transaction of $950,000.00. Following the completion of the transaction, the chief financial officer directly owned 132,288 shares in the company, valued at $12,567,360. The trade was a 7.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 88,594 shares of company stock valued at $8,382,790. 5.68% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Okta

Several large investors have recently modified their holdings of OKTA. Thrivent Financial for Lutherans increased its position in Okta by 298.2% during the second quarter. Thrivent Financial for Lutherans now owns 50,503 shares of the company's stock worth $5,049,000 after acquiring an additional 37,820 shares during the period. Promus Capital LLC bought a new position in Okta during the second quarter worth about $27,000. State of Wyoming bought a new position in Okta during the second quarter worth about $84,000. Campbell Capital Management Inc. bought a new position in Okta during the second quarter worth about $2,019,000. Finally, Capital Impact Advisors LLC bought a new position in Okta during the second quarter worth about $6,939,000. 86.64% of the stock is owned by institutional investors.

Okta Stock Performance

NASDAQ OKTA opened at $91.56 on Wednesday. The company has a current ratio of 1.47, a quick ratio of 1.47 and a debt-to-equity ratio of 0.05. The firm's fifty day moving average price is $95.32 and its two-hundred day moving average price is $102.39. Okta has a 1 year low of $70.56 and a 1 year high of $127.57. The firm has a market capitalization of $16.03 billion, a P/E ratio of 145.34, a price-to-earnings-growth ratio of 4.42 and a beta of 0.80.

Okta (NASDAQ:OKTA - Get Free Report) last posted its quarterly earnings results on Tuesday, May 27th. The company reported $0.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.77 by $0.09. Okta had a net margin of 4.85% and a return on equity of 2.79%. The firm had revenue of $688.00 million for the quarter, compared to analyst estimates of $680.14 million. During the same period in the prior year, the firm posted $0.65 earnings per share. The company's quarterly revenue was up 11.5% compared to the same quarter last year. As a group, research analysts anticipate that Okta will post 0.42 EPS for the current year.

Okta Company Profile

Okta, Inc operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Sign-On that enables users to access applications in the cloud or on-premises from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data; API Access Management enables organizations to secure APIs; Access Gateway enables organizations to extend Workforce Identity Cloud; and Okta Device Access enables end users to securely log in to devices with Okta credentials.

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