Okta (NASDAQ:OKTA) Upgraded at Capital One Financial

Key Points

• Capital One Financial upgraded Okta from “hold” to “strong-buy,” signaling improved analyst confidence in the identity-security company.
• Other firms have also turned more positive on the stock, with recent price-target hikes from KeyCorp and BTIG; Okta now has a Moderate Buy consensus and a $120.42 average target price.
• Okta reported better-than-expected quarterly results, including EPS of $0.91 versus $0.85 expected and revenue of $765 million, up 11.2% year over year.

Okta (NASDAQ:OKTA - Get Free Report) was upgraded by equities researchers at Capital One Financial from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

A number of other brokerages also recently weighed in on OKTA. KeyCorp upped their target price on Okta from $130.00 to $175.00 and gave the company an "overweight" rating in a report on Friday, July 10th. Arete Research set a $127.00 price objective on shares of Okta and gave the company a "buy" rating in a research report on Tuesday, May 26th. Wall Street Zen lowered shares of Okta from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Weiss Ratings upgraded shares of Okta from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, June 3rd. Finally, BTIG Research lifted their target price on shares of Okta from $119.00 to $136.00 and gave the company a "buy" rating in a research note on Thursday, June 25th. Two analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Okta currently has a consensus rating of "Moderate Buy" and a consensus target price of $120.42.

Okta Stock Down 2.1%

Shares of Okta stock opened at $147.74 on Thursday. Okta has a 12 month low of $62.66 and a 12 month high of $157.00. The stock has a market cap of $25.68 billion, a PE ratio of 107.06, a price-to-earnings-growth ratio of 5.43 and a beta of 0.77. The business has a fifty day simple moving average of $116.91 and a 200-day simple moving average of $93.68.

Okta (NASDAQ:OKTA - Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The company reported $0.91 earnings per share for the quarter, beating the consensus estimate of $0.85 by $0.06. Okta had a return on equity of 4.15% and a net margin of 8.24%.The firm had revenue of $765.00 million for the quarter, compared to analyst estimates of $751.84 million. During the same period in the previous year, the firm earned $0.86 earnings per share. Okta's quarterly revenue was up 11.2% on a year-over-year basis. Okta has set its FY 2027 guidance at 3.790-3.870 EPS and its Q2 2027 guidance at 0.950-0.970 EPS. Analysts expect that Okta will post 1.75 EPS for the current fiscal year.

Insider Activity at Okta

In related news, insider Eric Robert Kelleher sold 3,977 shares of the company's stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $114.10, for a total value of $453,775.70. Following the completion of the sale, the insider directly owned 19,618 shares in the company, valued at approximately $2,238,413.80. This represents a 16.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 24,971 shares of the company's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $134.13, for a total transaction of $3,349,360.23. Following the completion of the sale, the insider owned 23,477 shares of the company's stock, valued at $3,148,970.01. This represents a 51.54% decrease in their ownership of the stock. The disclosure for this sale 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 174,224 shares of company stock worth $22,534,353 over the last quarter. 4.61% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Okta

Several institutional investors have recently bought and sold shares of the stock. Robeco Institutional Asset Management B.V. grew its holdings in Okta by 52.9% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 465,370 shares of the company's stock valued at $40,241,000 after purchasing an additional 161,069 shares during the last quarter. Eurizon Capital SGR S.p.A. acquired a new stake in shares of Okta in the fourth quarter worth $3,122,000. Swedbank AB boosted its holdings in shares of Okta by 124.3% during the 4th quarter. Swedbank AB now owns 1,819,081 shares of the company's stock worth $157,296,000 after buying an additional 1,007,915 shares during the period. Diversify Wealth Management LLC bought a new stake in shares of Okta during the 1st quarter worth $2,077,000. Finally, Torque Asset Management LLC grew its stake in Okta by 40.5% in the 4th quarter. Torque Asset Management LLC now owns 289,141 shares of the company's stock valued at $25,002,000 after buying an additional 83,337 shares during the last quarter. 86.64% of the stock is currently owned by institutional investors.

Okta News Summary

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Capital One upgraded Okta (OKTA), which can signal improving Wall Street confidence in the company’s outlook and help support the stock. Palo Alto Networks, Okta upgraded at Capital One
• Positive Sentiment: Okta won partner recognition tied to its identity security push in cloud and AI, reinforcing its growth narrative in high-demand enterprise security markets. Okta (OKTA) Wins Partner Recognition For Identity Security Push In Cloud And AI
• Positive Sentiment: Okta was highlighted in broader cybersecurity coverage as a beneficiary of rising AI-driven security demand and increased enterprise spending on cyber defense. Cybersecurity Space is Buzzing on Recent Catalysts: 3 Top Picks
• Positive Sentiment: Okta also appeared in an article favoring cybersecurity stocks as AI changes tech defense, suggesting the company remains a relevant long-term play in a favored sector. Top Cybersecurity Stocks to Buy Now as AI Changes Tech Defense
• Neutral Sentiment: Okta was mentioned among stocks moving after an IBM warning, but the headline appears to reflect sector rotation rather than a company-specific problem. Dell, HP Enterprise, and Okta are among the group seeing gains after IBM warning
• Negative Sentiment: One market note said Okta may be fully priced after a 114% three-year run, which could temper enthusiasm if investors worry the upside is already reflected in the valuation. Okta (OKTA) Stock May Be Fully Priced Following Its 114% Run

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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