Okta's (OKTA) Buy Rating Reaffirmed at Needham & Company LLC

Key Points

• Okta's stock is rated as a "buy" by Needham & Company LLC, with a price target of $125.00, suggesting a potential upside of 36.52% from its current price.
• Numerous analysts have also adjusted their ratings and price targets for Okta, with 22 giving a "buy" rating and an average consensus price target of $118.19.
• In the last 90 days, company insiders have sold 88,594 shares of Okta stock, indicating potential insider confidence issues, as insiders now own only 5.68% of the stock.

Okta (NASDAQ:OKTA - Get Free Report)'s stock had its "buy" rating restated by analysts at Needham & Company LLC in a research note issued on Wednesday,Benzinga reports. They presently have a $125.00 price objective on the stock. Needham & Company LLC's target price would indicate a potential upside of 36.52% from the stock's current price.

A number of other equities research analysts have also issued reports on the company. Wells Fargo & Company increased their price target on Okta from $100.00 to $110.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 28th. Wall Street Zen upgraded Okta from a "hold" rating to a "buy" rating in a research note on Sunday, August 3rd. Scotiabank boosted their target price on Okta from $109.00 to $115.00 and gave the stock a "sector perform" rating in a research note on Wednesday, May 28th. Stifel Nicolaus boosted their target price on Okta from $120.00 to $130.00 and gave the stock a "buy" rating in a research note on Wednesday, May 28th. Finally, UBS Group decreased their target price on Okta from $150.00 to $130.00 and set a "buy" rating for the company in a research note on Wednesday, May 28th. Twenty-two research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, Okta presently has an average rating of "Moderate Buy" and a consensus price target of $118.19.

Okta Price Performance

OKTA stock opened at $91.56 on Wednesday. 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 firm has a market capitalization of $16.03 billion, a P/E ratio of 145.34, a P/E/G ratio of 4.42 and a beta of 0.80. The business's 50-day moving average is $95.32 and its two-hundred day moving average is $102.39. Okta has a 1 year low of $70.56 and a 1 year high of $127.57.

Okta (NASDAQ:OKTA - Get Free Report) last posted its quarterly earnings results on Tuesday, May 27th. The company reported $0.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.77 by $0.09. The company had revenue of $688.00 million for the quarter, compared to analyst estimates of $680.14 million. Okta had a return on equity of 2.79% and a net margin of 4.85%.Okta's revenue for the quarter was up 11.5% compared to the same quarter last year. During the same quarter last year, the company earned $0.65 EPS. Analysts anticipate that Okta will post 0.42 earnings per share for the current fiscal year.

Insider Activity at Okta

In related news, CEO Todd Mckinnon sold 31,592 shares of the company's stock in a transaction 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 transaction, the chief executive officer directly owned 20,682 shares in the company, valued at approximately $1,970,994.60. This represents a 60.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Brett Tighe sold 10,000 shares of the company's stock in a transaction on Friday, July 18th. The shares were sold at an average price of $95.00, for a total value of $950,000.00. Following the completion of the transaction, the chief financial officer owned 132,288 shares of the company's stock, valued at $12,567,360. The trade was a 7.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 88,594 shares of company stock valued at $8,382,790 in the last 90 days. 5.68% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Okta

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its stake in Okta by 3.4% during the first quarter. Vanguard Group Inc. now owns 17,792,886 shares of the company's stock worth $1,872,167,000 after acquiring an additional 582,956 shares during the last quarter. Wealth Enhancement Advisory Services LLC increased its stake in Okta by 52.4% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 12,126 shares of the company's stock worth $956,000 after acquiring an additional 4,171 shares during the last quarter. Trek Financial LLC acquired a new stake in Okta during the first quarter worth about $426,000. Merit Financial Group LLC acquired a new stake in Okta during the first quarter worth about $823,000. Finally, Stephens Investment Management Group LLC increased its stake in Okta by 10.4% during the first quarter. Stephens Investment Management Group LLC now owns 499,125 shares of the company's stock worth $52,518,000 after acquiring an additional 46,818 shares during the last quarter. 86.64% of the stock is currently owned by institutional investors and hedge funds.

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.

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