Okta (NASDAQ:OKTA) Shares Up 6.8% - Here's What Happened

Key Points

• Okta shares jumped 6.8% on Tuesday, trading as high as $149.21, well above the previous close of $139.53.
• The move came amid bullish analyst sentiment, including multiple higher price targets and a consensus “Moderate Buy” rating with an average target of $118.97.
• Okta’s latest quarterly results were solid, with EPS of $0.91 beating estimates and revenue of $765 million topping forecasts; the company also reported 11.2% year-over-year revenue growth.

Okta, Inc. (NASDAQ:OKTA - Get Free Report)'s stock price traded up 6.8% during trading on Tuesday . The stock traded as high as $149.21 and last traded at $149.0260. 431,553 shares changed hands during trading, a decline of 88% from the average session volume of 3,619,685 shares. The stock had previously closed at $139.53.

Wall Street Analysts Forecast Growth

OKTA has been the subject of a number of analyst reports. Berenberg Bank upped their price target on Okta from $120.00 to $135.00 and gave the stock a "buy" rating in a report on Friday, May 29th. Arete Research set a $127.00 target price on shares of Okta and gave the company a "buy" rating in a research note on Tuesday, May 26th. JPMorgan Chase & Co. lifted their price target on shares of Okta from $103.00 to $114.00 and gave the stock an "overweight" rating in a research note on Thursday, May 28th. BMO Capital Markets upped their price objective on shares of Okta from $95.00 to $120.00 and gave the company an "outperform" rating in a research report on Friday, May 29th. Finally, Wolfe Research assumed coverage on Okta in a research note on Thursday, April 16th. They set an "outperform" rating for the company. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, thirteen have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $118.97.

Okta Trading Up 10.1%

The company has a market cap of $26.71 billion, a P/E ratio of 111.37, a P/E/G ratio of 4.99 and a beta of 0.77. The company's 50-day moving average price is $112.57 and its two-hundred day moving average price is $92.36.

Okta (NASDAQ:OKTA - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The company reported $0.91 EPS for the quarter, topping the consensus estimate of $0.85 by $0.06. Okta had a net margin of 8.24% and a return on equity of 4.15%. The business had revenue of $765.00 million for the quarter, compared to analysts' expectations of $751.84 million. During the same quarter last year, the company posted $0.86 earnings per share. The company's quarterly 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, analysts anticipate that Okta, Inc. will post 1.75 earnings per share for the current year.

Insider Buying and Selling at Okta

In other Okta news, CFO Brett Tighe sold 65,000 shares of the company's stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $117.25, for a total value of $7,621,250.00. Following the completion of the sale, the chief financial officer directly owned 119,680 shares in the company, valued at $14,032,480. This represents a 35.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Todd Mckinnon sold 68,936 shares of the stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $146.62, for a total value of $10,107,396.32. Following the transaction, the chief executive officer directly owned 38,484 shares of the company's stock, valued at approximately $5,642,524.08. The trade was a 64.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 174,224 shares of company stock valued at $22,534,353. 4.61% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Elevation Wealth Partners LLC grew its stake in shares of Okta by 825.0% in the 4th quarter. Elevation Wealth Partners LLC now owns 296 shares of the company's stock worth $26,000 after purchasing an additional 264 shares during the last quarter. SHP Wealth Management bought a new stake in Okta during the fourth quarter worth approximately $27,000. Torren Management LLC acquired a new position in Okta in the fourth quarter worth approximately $32,000. MassMutual Private Wealth & Trust FSB grew its position in Okta by 279.5% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 296 shares of the company's stock worth $40,000 after buying an additional 218 shares during the last quarter. Finally, Spire Wealth Management increased its holdings in shares of Okta by 30.8% in the fourth quarter. Spire Wealth Management now owns 505 shares of the company's stock valued at $44,000 after buying an additional 119 shares in the last quarter. Institutional investors own 86.64% of the company's stock.

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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