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

Key Points

• Okta has a consensus analyst rating of “Moderate Buy” from 44 research firms, with an average 12-month price target of about $120.42.
• The company recently reported strong quarterly results, beating EPS and revenue expectations and posting 11.2% year-over-year revenue growth; management also issued guidance for future EPS growth.
• Despite the upbeat outlook, there has been some mixed insider activity, including sizable stock sales by the CFO and another insider, while institutional ownership remains high at 86.64%.

Shares of Okta, Inc. (NASDAQ:OKTA - Get Free Report) have earned an average rating of "Moderate Buy" from the forty-four research firms that are currently covering the company, Marketbeat Ratings 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 issued a strong buy rating on the company. The average 12-month target price among brokerages that have updated their coverage on the stock in the last year is $120.4167.

Several research analysts have recently weighed in on OKTA shares. BMO Capital Markets increased their price target on Okta from $95.00 to $120.00 and gave the stock an "outperform" rating in a research note on Friday, May 29th. Raymond James Financial cut Okta from a "buy" rating to a "strong sell" rating in a research note on Monday, July 6th. HC Wainwright started coverage on shares of Okta in a report on Monday, July 6th. They set a "buy" rating on the stock. DA Davidson increased their target price on shares of Okta from $110.00 to $130.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. Finally, UBS Group lifted their target price on shares of Okta from $115.00 to $150.00 and gave the stock a "buy" rating in a research note on Tuesday, June 9th.

Okta Trading Up 1.1%

NASDAQ:OKTA opened at $149.35 on Friday. Okta has a 12 month low of $62.66 and a 12 month high of $157.00. The firm's 50 day moving average is $118.22 and its 200 day moving average is $94.07. The stock has a market capitalization of $25.96 billion, a PE ratio of 108.23, a price-to-earnings-growth ratio of 5.31 and a beta of 0.77.

Okta (NASDAQ:OKTA - Get Free Report) last announced its quarterly earnings data on Thursday, May 28th. The company reported $0.91 earnings per share for the quarter, beating the consensus estimate of $0.85 by $0.06. Okta had a return on equity of 4.15% and a net margin of 8.24%.The business had revenue of $765.00 million during the quarter, compared to analyst estimates of $751.84 million. During the same period in the prior year, the company earned $0.86 earnings per share. Okta's revenue 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. Research analysts predict that Okta will post 1.75 earnings per share for the current year.

Insider Activity at Okta

In related news, CFO Brett Tighe sold 65,000 shares of the firm's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $117.25, for a total value of $7,621,250.00. Following the completion of the transaction, the chief financial officer directly owned 119,680 shares of the company's stock, valued at approximately $14,032,480. This trade represents a 35.20% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 2,463 shares of the business's stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $120.00, for a total transaction of $295,560.00. Following the sale, the insider directly owned 25,241 shares in the company, valued at $3,028,920. The trade was a 8.89% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 174,224 shares of company stock worth $22,534,353 in the last ninety days. Insiders own 4.61% of the company's stock.

Institutional Trading of Okta

A number of hedge funds and other institutional investors have recently made changes to their positions in OKTA. Integrated Wealth Concepts LLC purchased a new position in Okta during the 1st quarter valued at about $225,000. NewEdge Advisors LLC lifted its holdings in shares of Okta by 853.4% in the first quarter. NewEdge Advisors LLC now owns 5,530 shares of the company's stock worth $582,000 after buying an additional 4,950 shares in the last quarter. Sivia Capital Partners LLC purchased a new stake in shares of Okta in the second quarter worth about $244,000. Invesco Ltd. boosted its position in shares of Okta by 34.1% in the second quarter. Invesco Ltd. now owns 430,844 shares of the company's stock valued at $43,071,000 after acquiring an additional 109,614 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its position in shares of Okta by 122.7% in the second quarter. EverSource Wealth Advisors LLC now owns 1,621 shares of the company's stock valued at $162,000 after acquiring an additional 893 shares during the period. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.