Okta (NASDAQ:OKTA) Trading Up 5.4% - Should You Buy?

Key Points

• Okta's stock rose 5.4% during mid-day trading, reaching a high of $102.51 before closing at $103.18, though trading volume was down 14% from its average.
• Analysts have issued varied ratings, with a consensus target price of $118.61 and the majority (20 analysts) recommending a buy, indicating overall positive sentiment.
• In its latest quarterly report, Okta exceeded earnings expectations with $0.86 EPS on revenue of $688 million, reflecting an 11.5% increase in year-over-year revenue.
• Insider activity showed significant stock sales, including CEO Todd Mckinnon selling 31,592 shares, leading to a decrease in his ownership by 60.44%.

Okta, Inc. (NASDAQ:OKTA - Get Free Report) shares were up 5.4% during mid-day trading on Friday . The stock traded as high as $102.51 and last traded at $103.18. Approximately 3,089,031 shares were traded during trading, a decline of 14% from the average daily volume of 3,583,945 shares. The stock had previously closed at $97.89.

Analysts Set New Price Targets

Several analysts have recently issued reports on OKTA shares. Stephens reissued an "equal weight" rating and set a $127.00 target price on shares of Okta in a report on Tuesday, May 27th. Roth Capital reissued a "buy" rating and set a $119.00 target price on shares of Okta in a report on Wednesday, May 28th. JPMorgan Chase & Co. increased their target price on Okta from $120.00 to $140.00 and gave the stock an "overweight" rating in a report on Friday, May 23rd. Needham & Company LLC increased their target price on Okta from $115.00 to $125.00 and gave the stock a "buy" rating in a report on Wednesday, May 28th. Finally, Cantor Fitzgerald began coverage on Okta in a research note on Monday, March 31st. They issued an "overweight" rating and a $130.00 price objective on the stock. Three equities research analysts have rated the stock with a sell rating, fourteen have given a hold rating and twenty have issued a buy rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $118.61.

Okta Stock Up 6.6%

The company has a debt-to-equity ratio of 0.05, a current ratio of 1.47 and a quick ratio of 1.47. The company has a market capitalization of $18.26 billion, a P/E ratio of 165.28, a P/E/G ratio of 4.63 and a beta of 0.82. The stock has a 50-day moving average price of $102.90 and a 200-day moving average price of $101.67.

Okta (NASDAQ:OKTA - Get Free Report) last issued its quarterly earnings data on Tuesday, May 27th. The company reported $0.86 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.77 by $0.09. Okta had a return on equity of 2.79% and a net margin of 4.85%. The company had revenue of $688.00 million during the quarter, compared to the consensus estimate of $680.14 million. During the same period last year, the company earned $0.65 earnings per share. The firm's revenue was up 11.5% compared to the same quarter last year. On average, research analysts predict that Okta, Inc. will post 0.42 EPS for the current fiscal year.

Insider Activity at Okta

In other Okta news, CEO Todd Mckinnon sold 31,592 shares of Okta stock in a transaction that occurred on Monday, July 21st. The stock was sold at an average price of $95.30, for a total value of $3,010,717.60. Following the completion of the sale, the chief executive officer directly owned 20,682 shares in the company, valued at approximately $1,970,994.60. The trade was a 60.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Larissa Schwartz sold 2,244 shares of Okta stock in a transaction that occurred on Friday, June 20th. The stock was sold at an average price of $100.00, for a total value of $224,400.00. Following the completion of the sale, the insider owned 23,640 shares of the company's stock, valued at approximately $2,364,000. The trade was a 8.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 79,594 shares of company stock valued at $7,482,790 over the last ninety days. Insiders own 5.68% of the company's stock.

Institutional Investors Weigh In On Okta

A number of hedge funds have recently added to or reduced their stakes in the business. CWM LLC increased its holdings in Okta by 5.0% in the second quarter. CWM LLC now owns 30,063 shares of the company's stock worth $3,005,000 after purchasing an additional 1,433 shares in the last quarter. Vanguard Personalized Indexing Management LLC increased its holdings in Okta by 28.6% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 30,197 shares of the company's stock worth $3,019,000 after purchasing an additional 6,718 shares in the last quarter. Concurrent Investment Advisors LLC bought a new stake in shares of Okta during the second quarter valued at approximately $573,000. Apollon Wealth Management LLC bought a new stake in shares of Okta during the second quarter valued at approximately $234,000. Finally, Fifth Third Wealth Advisors LLC bought a new stake in shares of Okta during the second quarter valued at approximately $435,000. 86.64% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.