Okta (NASDAQ:OKTA) Downgraded by Zacks Research to Hold

Key Points

• Okta has been downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating, indicating a shift in analyst sentiment regarding the company's stock.
• Despite the downgrade, Wells Fargo increased Okta's target price to $110.00, while various other firms have reiterated "equal weight" or higher ratings, with a consensus target price of $118.25.
• Okta reported a 12.7% year-over-year increase in revenue for the last quarter, with earnings per share (EPS) of $0.91, surpassing expectations of $0.84.

Zacks Research lowered shares of Okta (NASDAQ:OKTA - Free Report) from a strong-buy rating to a hold rating in a research report report published on Thursday,Zacks.com reports.

Other analysts also recently issued reports about the stock. Roth Capital restated a "buy" rating and issued a $119.00 target price on shares of Okta in a report on Wednesday, May 28th. UBS Group lowered their price objective on shares of Okta from $150.00 to $130.00 and set a "buy" rating for the company in a research report on Wednesday, May 28th. Mizuho lowered their price objective on shares of Okta from $135.00 to $130.00 and set an "outperform" rating for the company in a research report on Wednesday, May 28th. Cantor Fitzgerald reissued an "overweight" rating and issued a $130.00 price objective on shares of Okta in a research report on Wednesday, August 27th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Okta from $120.00 to $140.00 and gave the company an "overweight" rating in a research report on Friday, May 23rd. Twenty-two equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Okta has a consensus rating of "Moderate Buy" and a consensus target price of $118.25.

Okta Trading Up 0.4%

Shares of OKTA traded up $0.32 during trading hours on Thursday, reaching $89.82. 3,410,246 shares of the stock traded hands, compared to its average volume of 3,753,872. Okta has a 52-week low of $70.56 and a 52-week high of $127.57. The company's 50-day moving average price is $94.64 and its two-hundred day moving average price is $102.20. The company has a market cap of $15.73 billion, a P/E ratio of 105.67, a price-to-earnings-growth ratio of 4.52 and a beta of 0.83.

Okta (NASDAQ:OKTA - Get Free Report) last announced its quarterly earnings results on Tuesday, August 26th. The company reported $0.91 EPS for the quarter, topping the consensus estimate of $0.84 by $0.07. The business had revenue of $728,000 billion for the quarter, compared to analysts' expectations of $711.84 million. Okta had a net margin of 6.08% and a return on equity of 3.31%. The business's quarterly revenue was up 12.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.72 EPS. Okta has set its FY 2026 guidance at 3.330-3.380 EPS. Q3 2026 guidance at 0.740-0.750 EPS. On average, research analysts forecast that Okta will post 0.42 EPS for the current year.

Insider Transactions at Okta

In other news, Director Jacques Frederic Kerrest sold 581 shares of the company's stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $100.29, for a total value of $58,268.49. Following the completion of the sale, the director owned 2,832 shares of the company's stock, valued at approximately $284,021.28. This represents a 17.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Brett Tighe sold 10,000 shares of the stock in a transaction that occurred on Friday, July 18th. The shares were sold at an average price of $95.00, for a total transaction of $950,000.00. Following the sale, the chief financial officer directly owned 132,288 shares of the company's stock, valued at $12,567,360. The trade was a 7.03% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 88,594 shares of company stock worth $8,382,790. Insiders own 5.68% of the company's stock.

Institutional Investors Weigh In On Okta

A number of hedge funds and other institutional investors have recently bought and sold shares of OKTA. Massachusetts Financial Services Co. MA lifted its position in Okta by 325.6% during the first quarter. Massachusetts Financial Services Co. MA now owns 3,699,944 shares of the company's stock valued at $389,308,000 after acquiring an additional 2,830,582 shares during the last quarter. Norges Bank purchased a new stake in Okta during the second quarter valued at approximately $211,923,000. Alkeon Capital Management LLC purchased a new stake in Okta during the first quarter valued at approximately $199,918,000. Ameriprise Financial Inc. lifted its position in Okta by 2,135.7% during the fourth quarter. Ameriprise Financial Inc. now owns 1,914,254 shares of the company's stock valued at $150,845,000 after acquiring an additional 1,828,630 shares during the last quarter. Finally, Ninety One UK Ltd purchased a new stake in Okta during the first quarter valued at approximately $189,915,000. Hedge funds and other institutional investors own 86.64% of the company's stock.

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.