Okta (NASDAQ:OKTA) Stock Price Expected to Rise, Needham & Company LLC Analyst Says

Key Points

• Needham & Company raised its price target on Okta from $120 to $140 and kept a buy rating, implying about 18.5% upside from the current share price.
• Okta’s latest earnings beat expectations, with EPS of $0.91 versus $0.85 expected and revenue of $765 million versus $751.84 million estimated, while revenue rose 11.2% year over year.
• The stock has attracted mixed but generally positive analyst sentiment and recent insider selling, including a large sale by the CFO, though institutional ownership remains high at 86.64%.

Okta (NASDAQ:OKTA - Get Free Report) had its price objective increased by analysts at Needham & Company LLC from $120.00 to $140.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm currently has a "buy" rating on the stock. Needham & Company LLC's target price suggests a potential upside of 18.48% from the stock's current price.

OKTA has been the topic of several other reports. Wells Fargo & Company increased their target price on shares of Okta from $85.00 to $100.00 and gave the stock an "equal weight" rating in a report on Friday, May 29th. Truist Financial upped their price objective on shares of Okta from $100.00 to $120.00 and gave the company a "buy" rating in a research report on Friday, May 29th. TD Cowen dropped their price objective on Okta from $115.00 to $105.00 and set a "hold" rating on the stock in a research note on Tuesday, February 24th. Citigroup reissued an "outperform" rating on shares of Okta in a research note on Friday, May 29th. Finally, Royal Bank Of Canada boosted their price objective on Okta from $108.00 to $122.00 and gave the company an "outperform" rating in a research report on Friday, May 29th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $114.71.

Okta Trading Up 1.9%

NASDAQ:OKTA opened at $118.16 on Wednesday. Okta has a 1-year low of $62.66 and a 1-year high of $142.35. The firm has a market capitalization of $20.54 billion, a price-to-earnings ratio of 85.62, a PEG ratio of 4.20 and a beta of 0.80. The business's 50-day moving average price is $94.64 and its two-hundred day moving average price is $87.58.

Okta (NASDAQ:OKTA - Get Free Report) last posted its earnings results on Thursday, May 28th. The company reported $0.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.85 by $0.06. The company had revenue of $765.00 million during the quarter, compared to analyst estimates of $751.84 million. Okta had a return on equity of 4.15% and a net margin of 8.24%.The company's revenue for the quarter was up 11.2% compared to the same quarter last year. During the same period in the previous year, the company earned $0.86 EPS. Okta has set its FY 2027 guidance at 3.790-3.870 EPS and its Q2 2027 guidance at 0.950-0.970 EPS. Sell-side analysts predict that Okta will post 1.74 earnings per share for the current year.

Insider Activity at Okta

In other news, CFO Brett Tighe sold 65,000 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $117.25, for a total transaction of $7,621,250.00. Following the sale, the chief financial officer directly owned 119,680 shares of the company's stock, valued at approximately $14,032,480. This represents a 35.20% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Shellye L. Archambeau sold 2,500 shares of the business's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $85.00, for a total value of $212,500.00. Following the completion of the transaction, the director directly owned 9,192 shares of the company's stock, valued at approximately $781,320. This trade represents a 21.38% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 111,611 shares of company stock valued at $12,832,682. 4.61% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in OKTA. Spire Wealth Management increased its stake in shares of Okta by 30.8% in the fourth quarter. Spire Wealth Management now owns 505 shares of the company's stock worth $44,000 after purchasing an additional 119 shares in the last quarter. EverSource Wealth Advisors LLC raised its stake in Okta by 10.7% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,333 shares of the company's stock valued at $105,000 after purchasing an additional 129 shares during the period. Allworth Financial LP boosted its stake in Okta by 6.4% in the 3rd quarter. Allworth Financial LP now owns 2,251 shares of the company's stock worth $206,000 after purchasing an additional 135 shares during the period. Choreo LLC raised its position in shares of Okta by 2.0% during the third quarter. Choreo LLC now owns 7,239 shares of the company's stock valued at $664,000 after buying an additional 140 shares during the last quarter. Finally, SteelPeak Wealth LLC boosted its position in shares of Okta by 2.8% during the first quarter. SteelPeak Wealth LLC now owns 5,166 shares of the company's stock worth $407,000 after acquiring an additional 140 shares during the last quarter. 86.64% of the stock is currently owned by institutional investors and hedge funds.

Okta News Summary

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Okta stockholders approved amendments to the company’s 2017 equity plan and backed the governance slate at the June 18 annual meeting, which removes a potential overhang and suggests shareholder support. Okta Stockholders Approve Equity Plan Changes, Governance Slate
• Positive Sentiment: Okta expanded its Cross App Access ecosystem to help secure AI agent connections, reinforcing its identity-security positioning as AI adoption grows. Okta expands Cross App Access ecosystem to secure AI agent connections
• Positive Sentiment: Okta also announced an AI-security collaboration with Google Cloud, which could support enterprise demand and strengthen the company’s relevance in modern workplace security. Okta teams up with Google Cloud to secure the AI-powered workforce
• Neutral Sentiment: Analyst coverage remains broadly constructive, with Wells Fargo reiterating a Hold rating and the Street still centered around a Moderate Buy consensus. Wells Fargo Sticks to Their Hold Rating for Okta (OKTA)
• Neutral Sentiment: Okta has been showing up more on investor watchlists, which can increase trading interest but does not by itself change the company’s fundamentals. Here is What to Know Beyond Why Okta, Inc. (OKTA) is a Trending Stock
• Negative Sentiment: Insider Eric Robert Kelleher sold 3,977 shares in a pre-arranged Rule 10b5-1 transaction. The sale was routine, but insider selling can still be viewed cautiously by investors. Eric Robert Kelleher insider sale details

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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