Okta (NASDAQ:OKTA) Hits New 1-Year High - Should You Buy?

Key Points

• Okta shares reached a new 52-week high of $213 and were recently trading near $209, well above their 50-day and 200-day moving averages. Analysts maintain a “Moderate Buy” consensus, with an average price target of $200.72.
• Okta exceeded quarterly expectations, reporting $1.05 in adjusted earnings per share versus estimates of $0.96 and revenue of $805 million versus $793 million expected. Revenue increased 10.6% year over year.
• Insiders have been selling shares, including the CEO’s $9.4 million sale, with insiders selling 206,702 shares worth approximately $34 million over the past 90 days. Meanwhile, institutional investors own 86.64% of the company.

Okta, Inc. (NASDAQ:OKTA - Get Free Report) shares reached a new 52-week high on Thursday. The stock traded as high as $213.00 and last traded at $209.1070, with a volume of 513260 shares trading hands. The stock had previously closed at $209.11.

Analysts Set New Price Targets

Several research firms have commented on OKTA. Robert W. Baird increased their price objective on shares of Okta from $200.00 to $235.00 and gave the company an "outperform" rating in a report on Friday, September 25th. BTIG Research reiterated a "buy" rating and issued a $219.00 target price on shares of Okta in a research report on Thursday, September 24th. Cantor Fitzgerald increased their price target on Okta from $170.00 to $200.00 and gave the company an "overweight" rating in a research note on Thursday, August 27th. Canaccord Genuity Group raised their price target on Okta from $115.00 to $175.00 and gave the company a "buy" rating in a report on Thursday, August 27th. Finally, Capital One Financial set a $171.00 price objective on Okta and gave the stock an "overweight" rating in a research note on Thursday, July 16th. One research analyst has rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and ten have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $200.72.

Okta Stock Performance

The stock has a market cap of $36.89 billion, a PE ratio of 127.19, a PEG ratio of 6.37 and a beta of 0.79. The stock has a fifty day moving average price of $162.41 and a 200 day moving average price of $122.72.

Okta (NASDAQ:OKTA - Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The company reported $1.05 earnings per share for the quarter, beating analysts' consensus estimates of $0.96 by $0.09. The business had revenue of $805.00 million for the quarter, compared to analysts' expectations of $793.00 million. Okta had a net margin of 9.63% and a return on equity of 4.50%. The business's revenue was up 10.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.91 earnings per share. Okta has set its FY 2027 guidance at 3.900-3.940 EPS and its Q3 2027 guidance at 0.920-0.940 EPS. As a group, equities analysts anticipate that Okta, Inc. will post 1.92 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Todd McKinnon sold 48,822 shares of the stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $193.48, for a total value of $9,446,080.56. Following the sale, the chief executive officer directly owned 44,029 shares in the company, valued at approximately $8,518,730.92. This represents a 52.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric Kelleher sold 6,395 shares of the firm's stock in a transaction that occurred on Friday, September 18th. The stock was sold at an average price of $183.58, for a total value of $1,173,994.10. Following the sale, the insider directly owned 18,668 shares of the company's stock, valued at $3,427,071.44. This represents a 25.52% 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 sold a total of 206,702 shares of company stock valued at $34,034,508 over the last 90 days. Insiders own 4.61% of the company's stock.

Institutional Trading of Okta

A number of hedge funds and other institutional investors have recently bought and sold shares of OKTA. Washington Trust Advisors Inc. grew its holdings in shares of Okta by 64.2% in the second quarter. Washington Trust Advisors Inc. now owns 197 shares of the company's stock worth $27,000 after purchasing an additional 77 shares during the last quarter. MassMutual Private Wealth & Trust FSB lifted its holdings in Okta by 279.5% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 296 shares of the company's stock valued at $40,000 after buying an additional 218 shares in the last quarter. SHP Wealth Management purchased a new stake in Okta in the 4th quarter valued at about $27,000. Assetmark Inc. grew its stake in Okta by 81.1% in the 1st quarter. Assetmark Inc. now owns 719 shares of the company's stock worth $57,000 after acquiring an additional 322 shares in the last quarter. Finally, SJS Investment Consulting Inc. increased its position in shares of Okta by 1,265.5% during the first quarter. SJS Investment Consulting Inc. now owns 751 shares of the company's stock worth $59,000 after acquiring an additional 696 shares during the period. Hedge funds and other institutional investors own 86.64% of the company's stock.

Okta Company Profile

Okta, Inc is an identity and access management company that helps organizations secure and manage access to applications, systems, devices and digital services. Its platform is designed to support employees, contractors, partners, customers and other users across cloud-based and on-premises environments.

Okta's products include single sign-on, multifactor authentication, lifecycle management, identity governance, privileged access and identity threat protection. Through its Workforce Identity Cloud and Customer Identity Cloud, the company provides tools for workforce access management and for integrating authentication and authorization capabilities into customer-facing applications.

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