Okta (NASDAQ:OKTA) Earns "Outperform" Rating from Royal Bank Of Canada

Key Points

• Okta has received an "outperform" rating from Royal Bank of Canada, with a price target of $115.00, indicating a potential upside of 27.86% from its current stock price.
• In addition to RBC's rating, other analysts have also upgraded their recommendations, contributing to a consensus rating of "Moderate Buy" with a price target averaging $119.14.
• As of the last trading session, Okta's stock price has seen some fluctuation, closing down at $89.94 with a market capitalization of $15.75 billion.

Okta (NASDAQ:OKTA - Get Free Report)'s stock had its "outperform" rating restated by analysts at Royal Bank Of Canada in a report released on Friday,Benzinga reports. They currently have a $115.00 price objective on the stock. Royal Bank Of Canada's target price would indicate a potential upside of 27.86% from the stock's current price.

OKTA has been the topic of a number of other research reports. Canaccord Genuity Group raised Okta from a "hold" rating to a "buy" rating and lifted their price objective for the stock from $115.00 to $120.00 in a research note on Tuesday, August 26th. BTIG Research reaffirmed a "buy" rating and issued a $142.00 price objective on shares of Okta in a research note on Friday. Guggenheim reaffirmed a "buy" rating and issued a $138.00 price objective on shares of Okta in a research note on Wednesday, August 27th. Wall Street Zen upgraded Okta from a "hold" rating to a "buy" rating in a report on Sunday, August 3rd. Finally, JMP Securities reiterated a "market perform" rating on shares of Okta in a report on Wednesday, August 27th. Twenty-two analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $119.14.

Okta Stock Performance

Shares of NASDAQ OKTA traded down $1.25 during trading on Friday, hitting $89.94. The company had a trading volume of 385,608 shares, compared to its average volume of 3,651,331. The stock has a 50 day simple moving average of $92.99 and a 200 day simple moving average of $101.39. The firm has a market capitalization of $15.75 billion, a P/E ratio of 105.81, a price-to-earnings-growth ratio of 4.41 and a beta of 0.83. Okta has a 12 month low of $70.92 and a 12 month high of $127.57.

Okta (NASDAQ:OKTA - Get Free Report) last issued its earnings results on Tuesday, August 26th. The company reported $0.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.84 by $0.07. The company had revenue of $728,000 billion for the quarter, compared to the consensus estimate of $711.84 million. Okta had a return on equity of 3.31% and a net margin of 6.08%.The firm's quarterly revenue was up 12.7% on a year-over-year basis. During the same quarter last 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. As a group, analysts predict that Okta will post 0.42 EPS for the current year.

Insider Buying and Selling at Okta

In other news, insider Eric Robert Kelleher sold 8,522 shares of the business's stock in a transaction on Thursday, September 18th. The stock was sold at an average price of $92.62, for a total value of $789,307.64. Following the completion of the transaction, the insider directly owned 9,174 shares of the company's stock, valued at approximately $849,695.88. The trade was a 48.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CRO Jonathan James Addison sold 6,091 shares of the company's stock in a transaction dated Thursday, September 18th. The shares were sold at an average price of $92.61, for a total value of $564,087.51. Following the transaction, the executive directly owned 7,067 shares in the company, valued at $654,474.87. This represents a 46.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 134,593 shares of company stock worth $12,598,168 over the last quarter. Insiders own 5.68% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its position in Okta by 5.3% during the 2nd quarter. Vanguard Group Inc. now owns 18,728,250 shares of the company's stock valued at $1,872,263,000 after buying an additional 935,364 shares in the last quarter. First Trust Advisors LP increased its position in Okta by 9.1% during the 2nd quarter. First Trust Advisors LP now owns 4,901,123 shares of the company's stock valued at $489,966,000 after buying an additional 407,087 shares in the last quarter. Massachusetts Financial Services Co. MA increased its position in Okta by 20.4% during the 2nd quarter. Massachusetts Financial Services Co. MA now owns 4,455,653 shares of the company's stock valued at $445,432,000 after buying an additional 755,709 shares in the last quarter. Geode Capital Management LLC grew its stake in Okta by 11.1% during the 2nd quarter. Geode Capital Management LLC now owns 3,155,011 shares of the company's stock valued at $314,488,000 after purchasing an additional 314,525 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Okta by 76.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,748,847 shares of the company's stock valued at $289,234,000 after purchasing an additional 1,189,222 shares during the last quarter. 86.64% of the stock is owned by institutional investors and hedge funds.

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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