Okta (NASDAQ:OKTA) Raised to "Buy" at Truist Financial

Key Points

• Okta was upgraded to a "Buy" rating by Truist Financial, with a new price target of $125.00, indicating a potential upside of 35.80% based on the stock's previous close.
• The company reported earnings of $0.86 per share, exceeding analysts' expectations of $0.77, and showed an 11.5% year-over-year revenue growth.
• Insider trading activity includes significant stock sales, with insiders selling 88,594 shares valued at approximately $8.4 million over the past ninety days.

Okta (NASDAQ:OKTA - Get Free Report) was upgraded by equities researchers at Truist Financial from a "hold" rating to a "buy" rating in a note issued to investors on Monday,Benzinga reports. The firm currently has a $125.00 target price on the stock, up from their previous target price of $100.00. Truist Financial's price objective points to a potential upside of 35.80% from the stock's previous close.

A number of other equities research analysts have also issued reports on the company. Arete began coverage on Okta in a research report on Monday, July 7th. They issued a "sell" rating and a $83.00 price target for the company. Scotiabank upped their price target on Okta from $109.00 to $115.00 and gave the company a "sector perform" rating in a research report on Wednesday, May 28th. Mizuho dropped their price target on Okta from $135.00 to $130.00 and set an "outperform" rating for the company in a research report on Wednesday, May 28th. BTIG Research restated a "buy" rating on shares of Okta in a research report on Thursday, May 22nd. Finally, UBS Group lowered their price objective on Okta from $150.00 to $130.00 and set a "buy" rating for the company in a research report on Wednesday, May 28th. Twenty-one analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, Okta has a consensus rating of "Hold" and a consensus price target of $118.61.

Okta Price Performance

NASDAQ:OKTA opened at $92.05 on Monday. Okta has a 12 month low of $70.56 and a 12 month high of $127.57. The stock has a 50 day moving average of $95.62 and a two-hundred day moving average of $102.50. The company has a current ratio of 1.47, a quick ratio of 1.47 and a debt-to-equity ratio of 0.05. The firm has a market cap of $16.12 billion, a P/E ratio of 146.11, a price-to-earnings-growth ratio of 4.45 and a beta of 0.80.

Okta (NASDAQ:OKTA - Get Free Report) last posted its quarterly earnings results on Tuesday, May 27th. The company reported $0.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.77 by $0.09. The business had revenue of $688.00 million during the quarter, compared to analyst estimates of $680.14 million. Okta had a return on equity of 2.79% and a net margin of 4.85%.The business's revenue was up 11.5% compared to the same quarter last year. During the same period in the prior year, the business earned $0.65 earnings per share. Okta has set its Q2 2026 guidance at 0.830-0.840 EPS. FY 2026 guidance at 3.230-3.280 EPS. On average, analysts expect that Okta will post 0.42 earnings per share for the current fiscal year.

Insider Activity at Okta

In other Okta news, insider Eric Robert Kelleher sold 16,018 shares of the company's stock in a transaction on Tuesday, July 15th. The stock was 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 in the company, valued at $646,709.64. This represents a 69.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Brett Tighe sold 10,000 shares of the stock in a transaction on Friday, July 18th. The shares were sold at an average price of $95.00, for a total value of $950,000.00. Following the completion of the sale, the chief financial officer owned 132,288 shares in the company, valued at approximately $12,567,360. The trade was a 7.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 88,594 shares of company stock valued at $8,382,790 over the last ninety days. 5.68% of the stock is owned by insiders.

Institutional Trading of Okta

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in shares of Okta by 3.4% in the first quarter. Vanguard Group Inc. now owns 17,792,886 shares of the company's stock valued at $1,872,167,000 after acquiring an additional 582,956 shares in the last quarter. Wealth Enhancement Advisory Services LLC raised its stake in shares of Okta by 52.4% in the fourth 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 in the last quarter. Trek Financial LLC acquired a new stake in shares of Okta in the first quarter valued at $426,000. Merit Financial Group LLC acquired a new stake in shares of Okta in the first quarter valued at $823,000. Finally, Stephens Investment Management Group LLC raised its stake in shares of Okta by 10.4% in the first quarter. Stephens Investment Management Group LLC now owns 499,125 shares of the company's stock valued at $52,518,000 after acquiring an additional 46,818 shares in the last quarter. 86.64% of the stock is currently 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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