Okta (NASDAQ:OKTA) Price Target Raised to $120.00

Key Points

• BMO Capital Markets raised its price target on Okta from $95 to $120 and kept an outperform rating, implying about 26.7% upside from the prior close.
• Okta’s latest quarter beat expectations, with EPS of $0.91 versus $0.85 expected and revenue of $765 million versus $751.8 million expected, while revenue grew 11.2% year over year.
• Management issued above-consensus guidance for both Q2 and FY 2027, and several analysts raised their targets after the report, though valuation concerns kept some ratings more cautious.

Okta (NASDAQ:OKTA - Get Free Report) had its price objective upped by equities research analysts at BMO Capital Markets from $95.00 to $120.00 in a report issued on Friday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. BMO Capital Markets' price objective suggests a potential upside of 26.69% from the company's previous close.

A number of other equities analysts also recently issued reports on OKTA. Stifel Nicolaus lowered their price objective on Okta from $121.00 to $92.00 and set a "buy" rating for the company in a research report on Thursday, March 5th. Truist Financial lowered their price objective on Okta from $115.00 to $100.00 and set a "buy" rating for the company in a research report on Thursday, March 5th. BTIG Research raised their price objective on Okta from $90.00 to $105.00 and gave the stock a "buy" rating in a research report on Thursday, May 21st. Jefferies Financial Group restated a "buy" rating and set a $120.00 price objective on shares of Okta in a research report on Friday. Finally, Barclays raised their target price on Okta from $90.00 to $93.00 and gave the stock an "overweight" rating in a research note on Thursday, May 14th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $104.85.

Okta Price Performance

Shares of OKTA opened at $94.72 on Friday. Okta has a 1 year low of $62.66 and a 1 year high of $107.84. The company has a market capitalization of $16.76 billion, a price-to-earnings ratio of 72.31, a price-to-earnings-growth ratio of 3.49 and a beta of 0.59. The business has a 50-day moving average of $79.01 and a 200-day moving average of $82.69.

Okta (NASDAQ:OKTA - Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The company reported $0.91 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.85 by $0.06. Okta had a return on equity of 4.18% and a net margin of 8.05%.The company had revenue of $765.00 million during the quarter, compared to the consensus estimate of $751.84 million. During the same period last year, the company earned $0.86 earnings per share. The firm's revenue was up 11.2% compared to the same quarter last year. 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, sell-side analysts anticipate that Okta will post 1.61 EPS for the current year.

Insider Transactions at Okta

In other Okta news, Director Shellye L. Archambeau sold 2,500 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $85.00, for a total value of $212,500.00. Following the completion of the sale, the director owned 9,192 shares of the company's stock, valued at approximately $781,320. This trade represents a 21.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 1,054 shares of the firm's stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $80.00, for a total value of $84,320.00. Following the completion of the sale, the insider directly owned 48,448 shares of the company's stock, valued at $3,875,840. This trade represents a 2.13% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 70,884 shares of company stock valued at $5,625,648. Company insiders own 4.61% of the company's stock.

Institutional Investors Weigh In On Okta

A number of hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of Okta by 5.7% during the third quarter. Vanguard Group Inc. now owns 19,803,227 shares of the company's stock valued at $1,815,956,000 after buying an additional 1,074,977 shares during the last quarter. First Trust Advisors LP boosted its position in shares of Okta by 28.2% during the fourth quarter. First Trust Advisors LP now owns 6,030,090 shares of the company's stock valued at $521,422,000 after buying an additional 1,326,051 shares during the last quarter. Allspring Global Investments Holdings LLC boosted its position in shares of Okta by 71.9% during the first quarter. Allspring Global Investments Holdings LLC now owns 3,553,091 shares of the company's stock valued at $281,209,000 after buying an additional 1,485,963 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of Okta by 1.8% during the fourth quarter. Geode Capital Management LLC now owns 3,261,303 shares of the company's stock valued at $281,246,000 after buying an additional 57,605 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Okta by 2.9% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,495,389 shares of the company's stock valued at $215,776,000 after buying an additional 69,653 shares during the last quarter. Institutional investors and hedge funds own 86.64% of the company's stock.

Okta News Summary

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Okta reported fiscal Q1 2027 results that beat estimates on both earnings and revenue, with EPS of $0.91 versus $0.85 expected and revenue of $765 million versus $751.8 million expected. The company also highlighted stronger operating performance and 11.2% year-over-year revenue growth. Okta earnings report
• Positive Sentiment: Management issued guidance above consensus, including Q2 EPS guidance of $0.95 to $0.97 and FY 2027 EPS guidance of $3.79 to $3.87, signaling confidence in continued execution and margin improvement. Okta press release
• Positive Sentiment: Analysts turned more constructive after the report, with JPMorgan raising its price target to $114, Citi lifting its target to $105, Robert W. Baird raising its target to $140, and William Blair reiterating a Buy rating on improving enterprise momentum and AI-driven growth potential. Citi target lift article
• Positive Sentiment: Investors are also focused on Okta’s AI-agent identity management opportunity, which management said is creating additional demand for its security tools and could expand the company’s long-term growth runway. CNBC earnings article
• Neutral Sentiment: Some commentary pointed to valuation as a reason for caution, with Citi keeping a Hold rating despite better execution, suggesting the stock may need continued fundamental progress to justify further upside. Citi hold/target article

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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