Okta (NASDAQ:OKTA) Announces Earnings Results, Beats Estimates By $998.15 EPS

Key Points

• Okta reported quarterly EPS of $999.00, far above the analyst consensus of $0.85, according to the article. The company also posted a net margin of 8.05% and return on equity of 4.18%.
• The stock rose 5.7% in Thursday trading, reaching $94.60 on heavier-than-usual volume. Okta’s market cap was listed at $16.73 billion, with shares trading between a 12-month low of $62.66 and high of $107.84.
• Analyst sentiment has been broadly positive, with multiple firms raising price targets and Arete Research upgrading the stock to Buy with a $127 target. MarketBeat data shows a consensus rating of “Moderate Buy” and a consensus price target of $102.44.

Okta (NASDAQ:OKTA - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $999.00 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.85 by $998.15, Zacks reports. Okta had a net margin of 8.05% and a return on equity of 4.18%.

Okta Trading Up 5.7%

Shares of NASDAQ:OKTA traded up $5.10 during midday trading on Thursday, hitting $94.60. 6,035,021 shares of the stock were exchanged, compared to its average volume of 3,396,862. The stock has a market cap of $16.73 billion, a P/E ratio of 72.22, a PEG ratio of 3.65 and a beta of 0.59. Okta has a twelve month low of $62.66 and a twelve month high of $107.84. The company has a 50 day moving average price of $78.68 and a 200-day moving average price of $82.62.

Analyst Upgrades and Downgrades

OKTA has been the topic of a number of recent analyst reports. Cantor Fitzgerald boosted their price target on shares of Okta from $100.00 to $110.00 and gave the stock an "overweight" rating in a research note on Wednesday. Scotiabank dropped their price target on shares of Okta from $85.00 to $80.00 and set a "sector perform" rating on the stock in a research note on Thursday, March 5th. Citigroup upgraded shares of Okta from a "negative" rating to a "positive" rating in a research note on Wednesday, May 20th. Jefferies Financial Group dropped their price target on shares of Okta from $125.00 to $105.00 and set a "buy" rating on the stock in a research note on Monday, March 2nd. Finally, Wells Fargo & Company boosted their price target on shares of Okta from $76.00 to $85.00 and gave the stock an "equal weight" rating in a research note on Thursday, May 21st. One analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $102.44.

Key Stories Impacting Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Arete Research upgraded Okta from Sell to Buy and set a $127 price target, citing expectations for a modest beat-and-raise quarter. Arete Upgrades Okta, Inc. (OKTA) Rating to Buy
• Positive Sentiment: Multiple recent analyst notes have turned constructive, with price-target hikes from firms including Cantor Fitzgerald, BTIG, KeyBanc, and others, reinforcing optimism around Okta’s execution and workforce identity demand.
• Positive Sentiment: Pre-earnings trading appears to be boosting the stock as investors look for strong results and guidance, supported by themes like AI-driven security demand, rising remaining performance obligations, and partner growth. Earnings To Watch: Okta (OKTA) Reports Q1 Results Tomorrow

Insiders Place Their Bets

In other Okta news, Director David Schellhase purchased 3,712 shares of the stock in a transaction dated Thursday, April 16th. The shares were acquired at an average cost of $72.04 per share, for a total transaction of $267,412.48. Following the completion of the transaction, the director directly owned 3,712 shares of the company's stock, valued at $267,412.48. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Jonathan James Addison sold 23,304 shares of the stock in a transaction that occurred on Wednesday, March 25th. The shares were sold at an average price of $77.79, for a total transaction of $1,812,818.16. Following the completion of the sale, the executive owned 4,364 shares in the company, valued at $339,475.56. This represents a 84.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 70,884 shares of company stock valued at $5,625,648. Corporate insiders own 4.61% of the company's stock.

Institutional Trading of Okta

Several large investors have recently modified their holdings of the business. Sivia Capital Partners LLC purchased a new position in shares of Okta during the second quarter valued at approximately $244,000. Centaurus Financial Inc. grew its holdings in Okta by 29.7% in the 3rd quarter. Centaurus Financial Inc. now owns 1,709 shares of the company's stock valued at $157,000 after buying an additional 391 shares during the period. Larson Financial Group LLC grew its holdings in Okta by 103.3% in the 3rd quarter. Larson Financial Group LLC now owns 1,159 shares of the company's stock valued at $106,000 after buying an additional 589 shares during the period. Horizon Investments LLC purchased a new stake in Okta in the 3rd quarter valued at about $145,000. Finally, Brown Brothers Harriman & Co. grew its holdings in Okta by 73.7% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 1,563 shares of the company's stock valued at $143,000 after buying an additional 663 shares during the period. 86.64% of the stock is currently owned by institutional investors and hedge funds.

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.

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.