Okta (NASDAQ:OKTA) Earns Buy Rating from Westpark Capital

Key Points

• Westpark Capital has reiterated a buy rating for Okta (NASDAQ:OKTA) and set a target price of $140.00, suggesting a potential upside of 47.87% from its previous close.
• Okta reported an EPS of $0.91 for the last quarter, exceeding the consensus estimate of $0.84, with a year-over-year revenue growth of 12.7%.
• Insider trading activity revealed significant stock sales, with over 88,594 shares sold collectively by insiders over the past three months.

Okta (NASDAQ:OKTA - Get Free Report)'s stock had its "buy" rating reiterated by stock analysts at Westpark Capital in a research note issued to investors on Wednesday,Benzinga reports. They presently have a $140.00 target price on the stock. Westpark Capital's price objective indicates a potential upside of 47.87% from the company's previous close.

Other equities research analysts have also issued reports about the stock. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $130.00 price objective on shares of Okta in a research note on Wednesday. Arete started coverage on shares of Okta in a report on Monday, July 7th. They set a "sell" rating and a $83.00 price objective for the company. Stephens reiterated an "equal weight" rating and set a $127.00 target price on shares of Okta in a research report on Tuesday, May 27th. UBS Group cut their target price 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. Finally, Mizuho cut their target price 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. Twenty-two analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, Okta presently has an average rating of "Moderate Buy" and a consensus target price of $117.36.

Okta Stock Performance

Shares of OKTA traded up $3.12 during midday trading on Wednesday, reaching $94.68. The stock had a trading volume of 7,266,599 shares, compared to its average volume of 3,642,375. The firm has a 50 day simple moving average of $95.32 and a 200-day simple moving average of $102.39. Okta has a one year low of $70.56 and a one year high of $127.57. The firm has a market cap of $16.58 billion, a PE ratio of 150.19, a P/E/G ratio of 4.42 and a beta of 0.80. The company has a current ratio of 1.47, a quick ratio of 1.47 and a debt-to-equity ratio of 0.05.

Okta (NASDAQ:OKTA - Get Free Report) last announced its 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 during the quarter, compared to the consensus estimate of $711.84 million. Okta had a net margin of 4.85% and a return on equity of 2.79%. Okta's revenue was up 12.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $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. As a group, sell-side analysts anticipate that Okta will post 0.42 EPS for the current year.

Insiders Place Their Bets

In other Okta news, insider Eric Robert Kelleher sold 16,018 shares of Okta stock in a transaction that occurred on Tuesday, July 15th. The shares were sold at an average price of $91.81, for a total transaction of $1,470,612.58. Following the transaction, the insider directly owned 7,044 shares of the company's stock, valued at approximately $646,709.64. This trade represents a 69.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Brett Tighe sold 10,000 shares of Okta stock in a transaction that occurred on Friday, July 18th. The stock was sold at an average price of $95.00, for a total transaction of $950,000.00. Following the transaction, the chief financial officer directly owned 132,288 shares in the company, valued at $12,567,360. This trade represents a 7.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 88,594 shares of company stock valued at $8,382,790 over the last three months. Corporate insiders own 5.68% of the company's stock.

Institutional Trading of Okta

A number of hedge funds have recently modified their holdings of OKTA. Vanguard Group Inc. boosted its stake in Okta by 3.4% in the 1st quarter. Vanguard Group Inc. now owns 17,792,886 shares of the company's stock worth $1,872,167,000 after purchasing an additional 582,956 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its stake in shares of Okta by 52.4% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 12,126 shares of the company's stock valued at $956,000 after acquiring an additional 4,171 shares during the period. Trek Financial LLC bought a new position in Okta in the 1st quarter worth approximately $426,000. Merit Financial Group LLC bought a new position in shares of Okta during the 1st quarter valued at approximately $823,000. Finally, Stephens Investment Management Group LLC increased its stake in Okta by 10.4% in the first quarter. Stephens Investment Management Group LLC now owns 499,125 shares of the company's stock worth $52,518,000 after purchasing an additional 46,818 shares during the period. Institutional investors own 86.64% of the company's stock.

About Okta

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.

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