Okta, Inc. (NASDAQ:OKTA) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Okta has a consensus analyst rating of "Moderate Buy" from 41 brokerages, with an average 1-year price target of about $114.14. The breakdown includes 28 buy ratings, 11 holds, one sell, and one strong buy.
• The company recently beat earnings expectations, reporting $0.91 EPS versus the $0.85 consensus and revenue of $765 million, up 11.2% year over year. Okta also provided forward guidance for FY2027 and Q2 2027 that implies continued earnings growth.
• Okta shares were trading around $115.94, above both the 50-day and 200-day moving averages, while insiders have been selling shares in recent months. Institutional investors still hold the majority of the stock, with 86.64% owned by hedge funds and other institutions.

Shares of Okta, Inc. (NASDAQ:OKTA - Get Free Report) have received a consensus rating of "Moderate Buy" from the forty-one brokerages that are covering the company, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, eleven have given a hold recommendation, twenty-eight have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price target among analysts that have covered the stock in the last year is $114.1429.

OKTA has been the topic of a number of research reports. DA Davidson boosted their target price on shares of Okta from $110.00 to $130.00 and gave the stock a "buy" rating in a report on Friday, May 29th. Mizuho downgraded shares of Okta from an "outperform" rating to a "neutral" rating and boosted their target price for the stock from $110.00 to $125.00 in a report on Tuesday, June 2nd. Susquehanna upped their price target on shares of Okta from $80.00 to $110.00 and gave the company a "neutral" rating in a report on Friday, May 29th. HSBC upgraded shares of Okta to a "buy" rating in a report on Thursday, April 16th. Finally, Citigroup reiterated an "outperform" rating on shares of Okta in a report on Friday, May 29th.

Okta Stock Down 1.6%

Okta stock opened at $115.94 on Tuesday. The company's 50-day moving average price is $93.53 and its 200-day moving average price is $87.35. Okta has a twelve month low of $62.66 and a twelve month high of $142.35. The company has a market cap of $20.15 billion, a PE ratio of 84.02, a price-to-earnings-growth ratio of 4.27 and a beta of 0.80.

Okta (NASDAQ:OKTA - Get Free Report) last posted its earnings results on Thursday, May 28th. The company reported $0.91 earnings per share for the quarter, topping analysts' consensus estimates of $0.85 by $0.06. Okta had a net margin of 8.24% and a return on equity of 4.15%. The firm had revenue of $765.00 million for the quarter, compared to the consensus estimate of $751.84 million. During the same period in the previous year, the firm posted $0.86 EPS. The business's quarterly revenue 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. As a group, sell-side analysts expect that Okta will post 1.74 earnings per share for the current fiscal year.

Insider Activity at Okta

In related news, Director Shellye L. Archambeau sold 2,500 shares of the company's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $85.00, for a total transaction of $212,500.00. Following the transaction, the director directly owned 9,192 shares in the company, valued at approximately $781,320. This represents a 21.38% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brett Tighe sold 65,000 shares of the company's stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $117.25, for a total transaction of $7,621,250.00. Following the transaction, the chief financial officer owned 119,680 shares in the company, valued at $14,032,480. The trade was a 35.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 130,938 shares of company stock worth $14,191,725 in the last three months. 4.61% of the stock is owned by insiders.

Hedge Funds Weigh In On Okta

Several hedge funds have recently added to or reduced their stakes in OKTA. Norges Bank bought a new position in Okta during the 4th quarter valued at about $175,193,000. Allspring Global Investments Holdings LLC grew its holdings in Okta by 71.9% during the 1st 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 grew its holdings in Okta by 28.2% during the 4th quarter. First Trust Advisors LP now owns 6,030,090 shares of the company's stock valued at $521,422,000 after purchasing an additional 1,326,051 shares during the last quarter. Alyeska Investment Group L.P. grew its stake in Okta by 276.9% in the 3rd quarter. Alyeska Investment Group L.P. now owns 1,403,499 shares of the company's stock worth $128,701,000 after acquiring an additional 1,031,083 shares in the last quarter. Finally, Swedbank AB grew its stake in Okta by 124.3% in the 4th quarter. Swedbank AB now owns 1,819,081 shares of the company's stock worth $157,296,000 after acquiring an additional 1,007,915 shares in the last quarter. 86.64% of the stock is currently owned by 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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