Okta (NASDAQ:OKTA) Trading Down 6.7% - Here's What Happened

Key Points

• Okta shares fell 6.7% on Friday, dropping from a prior close of $148.84 to around $138.87 as trading volume came in below average.
• Despite the stock decline, Wall Street remains cautiously positive: analysts still hold a “Moderate Buy” consensus, with an average price target of $118.97 and several firms recently raising or maintaining targets.
• Okta’s latest earnings beat expectations, with quarterly EPS of $0.91 versus $0.85 expected and revenue of $765 million, up 11.2% year over year; insider selling was also notable, with 105,288 shares sold over the last quarter.

Okta, Inc. (NASDAQ:OKTA - Get Free Report)'s stock price dropped 6.7% on Friday . The stock traded as low as $139.00 and last traded at $138.8660. 2,138,713 shares were traded during trading, a decline of 41% from the average daily volume of 3,643,611 shares. The stock had previously closed at $148.84.

Wall Street Analysts Forecast Growth

OKTA has been the topic of a number of research reports. Wedbush reiterated an "outperform" rating and issued a $60.00 target price on shares of Okta in a report on Friday, May 29th. Wells Fargo & Company lifted their price target on shares of Okta from $85.00 to $100.00 and gave the stock an "equal weight" rating in a research report on Friday, May 29th. BTIG Research upped their price target on Okta from $119.00 to $136.00 and gave the company a "buy" rating in a report on Thursday, June 25th. Morgan Stanley assumed coverage on Okta in a research report on Monday. They set a "neutral" rating for the company. Finally, Arete Research set a $127.00 target price on Okta and gave the stock a "buy" rating in a report on Tuesday, May 26th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, thirteen have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $118.97.

Okta Trading Down 6.9%

The company's 50-day moving average is $110.00 and its 200 day moving average is $91.67. The firm has a market cap of $24.10 billion, a PE ratio of 100.94, a P/E/G ratio of 5.28 and a beta of 0.77.

Okta (NASDAQ:OKTA - Get Free Report) last issued its 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. The business had revenue of $765.00 million during the quarter, compared to analysts' expectations of $751.84 million. Okta had a return on equity of 4.15% and a net margin of 8.24%.Okta's revenue was up 11.2% compared to the same quarter last year. During the same quarter last year, the firm posted $0.86 earnings per share. Okta has set its FY 2027 guidance at 3.790-3.870 EPS and its Q2 2027 guidance at 0.950-0.970 EPS. On average, research analysts predict that Okta, Inc. will post 1.75 EPS for the current fiscal year.

Insider Activity at Okta

In other Okta news, insider Eric Robert Kelleher sold 3,977 shares of the stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $114.10, for a total transaction of $453,775.70. Following the transaction, the insider directly owned 19,618 shares of the company's stock, valued at $2,238,413.80. This represents a 16.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director David Schellhase acquired 3,712 shares of the stock in a transaction dated Thursday, April 16th. The shares were bought at an average cost of $72.04 per share, for a total transaction of $267,412.48. Following the acquisition, the director owned 3,712 shares in the company, valued at $267,412.48. The trade was a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 105,288 shares of company stock worth $12,426,956 over the last quarter. 4.61% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Okta

Several hedge funds have recently modified their holdings of OKTA. Generali Investments Management Co LLC grew its position in Okta by 13.1% in the 2nd quarter. Generali Investments Management Co LLC now owns 3,005 shares of the company's stock worth $410,000 after purchasing an additional 349 shares during the last quarter. E. Ohman J or Asset Management AB raised its position in shares of Okta by 2,395.8% during the second quarter. E. Ohman J or Asset Management AB now owns 146,156 shares of the company's stock valued at $19,943,000 after buying an additional 140,300 shares during the last quarter. Handelsbanken Fonder AB raised its position in shares of Okta by 351.3% during the second quarter. Handelsbanken Fonder AB now owns 216,191 shares of the company's stock valued at $29,499,000 after buying an additional 168,291 shares during the last quarter. Fulton Bank N.A. bought a new stake in shares of Okta in the second quarter valued at about $365,000. Finally, Hennion & Walsh Asset Management Inc. grew its position in Okta by 1.8% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 9,241 shares of the company's stock worth $1,261,000 after buying an additional 167 shares in the last quarter. 86.64% of the stock is owned by institutional investors.

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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