Okta (NASDAQ:OKTA) Upgraded by Canaccord Genuity Group to "Buy" Rating

Key Points

• Okta's stock rating was upgraded from "hold" to "buy" by Canaccord Genuity Group, with a new price target of $120.00, suggesting a potential upside of 31.36% from its current price.
• Despite the upgrade, Okta's share price has fluctuated, opening at $91.35 and remaining below its 52-week high of $127.57.
• Research from various firms indicates a consensus target price of $118.75, with a majority rating Okta as a "moderate buy," attracting interest from institutional investors.

Canaccord Genuity Group upgraded shares of Okta (NASDAQ:OKTA - Free Report) from a hold rating to a buy rating in a research note released on Tuesday, Marketbeat.com reports. They currently have $120.00 price target on the stock, up from their previous price target of $115.00.

A number of other equities analysts have also recently commented on OKTA. Truist Financial raised Okta from a "hold" rating to a "buy" rating and increased their target price for the company from $100.00 to $125.00 in a report on Monday. JMP Securities reissued a "market perform" rating on shares of Okta in a research note on Wednesday, May 28th. UBS Group decreased their price objective on Okta from $150.00 to $130.00 and set a "buy" rating on the stock in a report on Wednesday, May 28th. Scotiabank lifted their target price on shares of Okta from $109.00 to $115.00 and gave the stock a "sector perform" rating in a research note on Wednesday, May 28th. Finally, JPMorgan Chase & Co. increased their target price on shares of Okta from $120.00 to $140.00 and gave the company an "overweight" rating in a research report on Friday, May 23rd. Twenty-two equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $118.25.

Okta Price Performance

OKTA traded down $0.44 during midday trading on Tuesday, hitting $92.59. 7,073,265 shares of the company traded hands, compared to its average volume of 3,983,655. The business has a 50 day simple moving average of $95.07 and a two-hundred day simple moving average of $102.29. Okta has a 52-week low of $70.56 and a 52-week high of $127.57. The company has a market capitalization of $16.21 billion, a price-to-earnings ratio of 108.93, a PEG ratio of 4.46 and a beta of 0.80. The company has a current ratio of 1.35, a quick ratio of 1.47 and a debt-to-equity ratio of 0.05.

Okta (NASDAQ:OKTA - Get Free Report) last released its earnings results on Tuesday, August 26th. The company reported $0.91 EPS for the quarter, topping analysts' consensus estimates of $0.84 by $0.07. The business had revenue of $728,000 billion during the quarter, compared to analysts' expectations of $711.84 million. Okta had a net margin of 6.08% and a return on equity of 3.31%. The company's quarterly revenue was up 12.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.72 earnings per share. Okta has set its FY 2026 guidance at 3.330-3.380 EPS. Q3 2026 guidance at 0.740-0.750 EPS. On average, equities analysts forecast that Okta will post 0.42 earnings per share for the current fiscal year.

Insider Activity

In other Okta news, CEO Todd Mckinnon sold 31,592 shares of the firm's stock in a transaction on Monday, July 21st. The stock was sold at an average price of $95.30, for a total transaction of $3,010,717.60. Following the completion of the sale, the chief executive officer owned 20,682 shares of the company's stock, valued at $1,970,994.60. This trade represents a 60.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jacques Frederic Kerrest sold 581 shares of Okta stock in a transaction on Friday, June 20th. The shares were sold at an average price of $100.29, for a total value of $58,268.49. Following the completion of the sale, the director owned 2,832 shares in the company, valued at $284,021.28. This represents a 17.02% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 88,594 shares of company stock worth $8,382,790. 5.68% of the stock is owned by company insiders.

Institutional Trading of Okta

Hedge funds and other institutional investors have recently modified their holdings of the business. Wolff Wiese Magana LLC raised its holdings in Okta by 167.4% in the 1st quarter. Wolff Wiese Magana LLC now owns 246 shares of the company's stock valued at $26,000 after buying an additional 154 shares during the period. Wayfinding Financial LLC purchased a new position in Okta during the first quarter worth about $27,000. Harbour Investments Inc. increased its position in shares of Okta by 152.4% during the first quarter. Harbour Investments Inc. now owns 260 shares of the company's stock valued at $27,000 after acquiring an additional 157 shares during the last quarter. Pinnacle Bancorp Inc. purchased a new stake in shares of Okta in the 2nd quarter valued at approximately $26,000. Finally, Promus Capital LLC purchased a new stake in shares of Okta in the 2nd quarter valued at approximately $27,000. 86.64% of the stock is owned by institutional investors and hedge funds.

Okta Company Profile

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.