Okta (NASDAQ:OKTA) Hits New 52-Week High - Time to Buy?

Key Points

• Okta reached a new 52-week high, trading as high as $175.95 and recently around $177.22. The stock has a $31 billion market capitalization and trades at a high price-to-earnings ratio of 107.21.
• Analyst sentiment is broadly positive, with 32 Buy, one Strong Buy, and 10 Hold ratings; the average target is $172.92, while several firms recently raised targets as high as $200.
• Okta exceeded quarterly expectations, reporting $1.05 in adjusted EPS versus $0.96 expected and $805 million in revenue, up 10.6% year over year. However, insiders sold $23.7 million of shares during the last quarter, including a significant sale by CEO Todd McKinnon.

Okta, Inc. (NASDAQ:OKTA - Get Free Report) reached a new 52-week high during trading on Thursday . The stock traded as high as $175.95 and last traded at $177.2160, with a volume of 491209 shares traded. The stock had previously closed at $172.74.

Analyst Upgrades and Downgrades

Several brokerages have commented on OKTA. DA Davidson raised their price target on shares of Okta from $165.00 to $190.00 and gave the company a "buy" rating in a research note on Thursday, August 27th. BTIG Research increased their price objective on Okta from $167.00 to $187.00 and gave the stock a "buy" rating in a report on Thursday, August 27th. Truist Financial reissued a "buy" rating and issued a $200.00 price objective (up from $165.00) on shares of Okta in a report on Thursday, August 27th. Piper Sandler raised their target price on Okta from $105.00 to $160.00 and gave the company a "neutral" rating in a research report on Thursday, August 27th. Finally, Robert W. Baird lifted their target price on Okta from $175.00 to $185.00 and gave the company an "outperform" rating in a research note on Thursday, August 27th. One research analyst has rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and ten have issued a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $172.92.

Okta Stock Performance

The business's 50 day moving average price is $148.34 and its two-hundred day moving average price is $110.38. The company has a market capitalization of $31.00 billion, a price-to-earnings ratio of 107.21, a price-to-earnings-growth ratio of 5.21 and a beta of 0.79.

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

Insider Transactions at Okta

In other news, CEO Todd McKinnon sold 68,936 shares of the company's stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $146.62, for a total value of $10,107,396.32. Following the completion of the sale, the chief executive officer owned 38,484 shares in the company, valued at $5,642,524.08. This represents a 64.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 2,463 shares of the firm's stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $120.00, for a total value of $295,560.00. Following the transaction, the insider directly owned 25,241 shares of the company's stock, valued at $3,028,920. This represents a 8.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 155,376 shares of company stock valued at $23,734,135 in the last quarter. Company insiders own 4.61% of the company's stock.

Institutional Investors Weigh In On Okta

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Integrated Wealth Concepts LLC acquired a new position in shares of Okta in the 1st quarter worth approximately $225,000. NewEdge Advisors LLC lifted its stake in Okta by 853.4% during the first quarter. NewEdge Advisors LLC now owns 5,530 shares of the company's stock valued at $582,000 after purchasing an additional 4,950 shares during the last quarter. Sivia Capital Partners LLC acquired a new stake in Okta during the second quarter valued at approximately $244,000. Invesco Ltd. boosted its holdings in Okta by 34.1% during the second quarter. Invesco Ltd. now owns 430,844 shares of the company's stock worth $43,071,000 after buying an additional 109,614 shares in the last quarter. Finally, EverSource Wealth Advisors LLC grew its position in Okta by 122.7% in the second quarter. EverSource Wealth Advisors LLC now owns 1,621 shares of the company's stock worth $162,000 after buying an additional 893 shares during the last quarter. 86.64% of the stock is currently owned by institutional investors.

Okta Company Profile

Okta, Inc provides cloud-based identity and access management solutions for organizations. Its platform helps businesses securely connect employees, customers, partners and applications while managing authentication, authorization and user access across cloud, on-premises and mobile environments.

The company's offerings include single sign-on, multifactor authentication, adaptive access controls, lifecycle management, identity governance and privileged access capabilities. Through its Customer Identity Cloud, powered by Auth0, Okta also provides tools for developers and businesses to embed authentication and authorization features into applications and digital services.

Founded in 2009 by Todd McKinnon and Frederic Kerrest, Okta completed its initial public offering in 2017.

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