Okta (NASDAQ:OKTA) Downgraded to "Neutral" Rating by Mizuho

Key Points

• Mizuho downgraded Okta from “outperform” to “neutral” and kept a $125 price target, implying about 10.6% downside from the prior close.
• Despite the downgrade, Wall Street sentiment remains mostly positive: the stock has a consensus “Moderate Buy” rating, with an average price target of $112.29 across analysts.
• Okta’s latest earnings were strong, with EPS of $0.91 beating estimates and revenue of $765 million topping forecasts; the company also raised guidance, which has helped keep investor interest high.

Okta (NASDAQ:OKTA - Get Free Report) was downgraded by stock analysts at Mizuho from an "outperform" rating to a "neutral" rating in a research report issued to clients and investors on Tuesday. They presently have a $125.00 target price on the stock. Mizuho's target price points to a potential downside of 10.58% from the company's previous close.

Several other brokerages have also recently weighed in on OKTA. Raymond James Financial upgraded shares of Okta from a "market perform" rating to an "outperform" rating and set a $85.00 price target on the stock in a research report on Thursday, April 16th. Wall Street Zen cut shares of Okta from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Jefferies Financial Group boosted their price target on shares of Okta from $105.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday. Zacks Research cut shares of Okta from a "strong-buy" rating to a "hold" rating in a research report on Thursday, March 26th. Finally, Needham & Company LLC boosted their price target on shares of Okta from $90.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Okta has a consensus rating of "Moderate Buy" and an average price target of $112.29.

Okta Price Performance

Okta stock opened at $139.79 on Tuesday. The stock has a market cap of $24.73 billion, a P/E ratio of 101.30, a PEG ratio of 4.78 and a beta of 0.59. Okta has a 1 year low of $62.66 and a 1 year high of $142.35. The firm's 50 day moving average price is $81.09 and its 200-day moving average price is $83.33.

Okta (NASDAQ:OKTA - Get Free Report) last released its quarterly earnings data on Thursday, May 28th. The company reported $0.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.85 by $0.06. The firm had revenue of $765.00 million for the quarter, compared to analysts' expectations of $751.84 million. Okta had a net margin of 8.24% and a return on equity of 4.15%. The company's revenue for the quarter was up 11.2% compared to the same quarter last year. During the same quarter last year, the business posted $0.86 earnings per share. 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, equities analysts expect that Okta will post 1.61 EPS for the current year.

Insider Activity

In other news, insider Eric Robert Kelleher sold 2,409 shares of the business's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $80.00, for a total transaction of $192,720.00. Following the completion of the sale, the insider directly owned 15,470 shares of the company's stock, valued at approximately $1,237,600. The trade was a 13.47% 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. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Shellye L. Archambeau sold 2,500 shares of the business's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $85.00, for a total transaction of $212,500.00. Following the sale, the director directly owned 9,192 shares of the company's stock, valued at $781,320. This represents a 21.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 70,884 shares of company stock valued at $5,625,648. Insiders own 4.61% of the company's stock.

Institutional Trading of Okta

A number of large investors have recently made changes to their positions in the stock. Glenmede Trust Co. NA boosted its stake in shares of Okta by 7.0% during the first quarter. Glenmede Trust Co. NA now owns 540,947 shares of the company's stock valued at $42,578,000 after purchasing an additional 35,324 shares during the period. Bank of America Corp DE lifted its stake in Okta by 0.4% in the first quarter. Bank of America Corp DE now owns 1,496,896 shares of the company's stock worth $117,821,000 after acquiring an additional 6,533 shares during the period. Arkadios Wealth Advisors lifted its stake in Okta by 133.4% in the first quarter. Arkadios Wealth Advisors now owns 12,295 shares of the company's stock worth $968,000 after acquiring an additional 7,028 shares during the period. South Dakota Investment Council lifted its stake in Okta by 11.1% in the first quarter. South Dakota Investment Council now owns 47,783 shares of the company's stock worth $3,761,000 after acquiring an additional 4,777 shares during the period. Finally, IFS Group LLC purchased a new stake in Okta in the first quarter worth about $375,000. 86.64% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Okta’s recent earnings beat and raised outlook continue to support the stock, with bullish writeups saying the company’s AI security strategy and identity platform remain intact and could drive further upside. Okta Stock Gains On Earnings, But The Bull Case Is Still Intact
• Positive Sentiment: Coverage highlighted Okta as one of the top large-cap gainers last week, citing strong earnings, higher guidance, and AI-related tailwinds as the main drivers behind the move. Dell, Snowflake, And Okta Are Among Top 10 Large-Cap Gainers Last Week
• Positive Sentiment: Analyst- and investor-focused articles suggest Okta is drawing renewed attention, which can reinforce momentum after the company’s strong quarterly results. Okta, Inc. (OKTA) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Commentary from Okta’s COO about companies needing to redesign work for AI agents adds to the broader AI narrative, but it is more strategic color than a direct financial catalyst. Okta’s COO says companies are in denial about the hardest part of the AI revolution
• Neutral Sentiment: Jim Cramer’s mention of Okta and general market chatter have kept the stock in the spotlight, but the article does not appear to add new fundamental information. Jim Cramer Shares Key Detail About Okta (OKTA)
• Neutral Sentiment: Additional headline mentions and “hyped stock” coverage point to the stock trading near highs, but do not provide a fresh catalyst by themselves. 3 Hyped Up Stocks with Questionable Fundamentals
• Negative Sentiment: Broader cybersecurity news, including Palo Alto Networks’ earnings and AI security positioning, could increase competition for investor attention in the sector. Palo Alto Reports Earnings as It Prepares for AI Security

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.

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