Okta (NASDAQ:OKTA) Reaches New 12-Month High on Strong Earnings

Key Points

• Okta exceeded quarterly expectations: Adjusted EPS came in at $1.05 versus the $0.96 consensus, while revenue rose 10.6% year over year to $805 million, ahead of the $793 million forecast.
• Management raised its outlook: Fiscal 2027 revenue guidance was lifted to approximately $3.216 billion–$3.226 billion, and third-quarter revenue and EPS guidance also topped Wall Street expectations. Okta cited growing demand for identity and security products related to AI agents.
• Investor sentiment improved, though valuation is elevated: The stock reached a new 52-week high of $160.50, while several analysts raised price targets and maintained Buy or Overweight ratings. However, Okta trades at a high earnings multiple, leaving less room for execution disappointments.

Okta, Inc. (NASDAQ:OKTA - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $160.50 and last traded at $160.3280, with a volume of 369508 shares trading hands. The stock had previously closed at $134.42.

The company reported $1.05 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.09. Okta had a net margin of 8.24% and a return on equity of 4.15%. The firm had revenue of $805.00 million during the quarter, compared to the consensus estimate of $793.00 million. During the same period last year, the firm posted $0.91 EPS. The firm's revenue for the quarter 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.

More Okta News

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Quarterly results exceeded expectations: Okta reported adjusted EPS of $1.05 versus the $0.96 consensus estimate, while revenue rose 10.6% year over year to $805 million, ahead of the $793 million forecast. Okta quarterly earnings report
• Positive Sentiment: Raised outlook: Management lifted fiscal 2027 revenue guidance to approximately $3.216 billion-$3.226 billion, or 10%-11% growth. Third-quarter revenue guidance of $813 million-$817 million and EPS guidance of $0.92-$0.94 also topped Wall Street expectations. Okta lifts full-year outlook
• Positive Sentiment: AI-related demand is strengthening the growth narrative: Okta said AI agents are creating new identity and security requirements, with new products contributing meaningfully to bookings. Investors view AI-agent security as a potentially large new market. Okta CEO discusses AI agent security
• Positive Sentiment: Analyst support increased: KeyCorp raised its target to $190 and assigned an Overweight rating; BTIG raised its target to $187 and reiterated Buy; and Needham and Cantor Fitzgerald raised targets to $200 with Buy or Overweight ratings. These revisions signal greater confidence in Okta’s growth and fundamentals. Needham raises Okta price target
• Neutral Sentiment: Valuation remains a consideration: With Okta trading near $134 and at a high earnings multiple, the stock’s roughly $23 billion market capitalization leaves less room for execution disappointments despite the improved outlook. Okta buy thesis and margin for error

Analyst Ratings Changes

A number of brokerages have commented on OKTA. BTIG Research increased their target price on Okta from $167.00 to $187.00 and gave the company a "buy" rating in a report on Thursday. Evercore restated an "outperform" rating on shares of Okta in a research report on Thursday. Raymond James Financial reaffirmed an "outperform" rating on shares of Okta in a research note on Thursday. Stifel Nicolaus set a $180.00 target price on shares of Okta in a report on Thursday. Finally, Bank of America raised shares of Okta from an "underperform" rating to a "neutral" rating and set a $170.00 price target on the stock in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, Okta presently has an average rating of "Moderate Buy" and a consensus target price of $158.50.

Insider Buying and Selling at Okta

In other news, insider Larissa Schwartz sold 24,971 shares of the company's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $134.13, for a total value 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Todd Mckinnon sold 68,936 shares of the firm's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $146.62, for a total value of $10,107,396.32. Following the sale, the chief executive officer owned 38,484 shares in the company, valued at approximately $5,642,524.08. The trade was a 64.17% decrease in their ownership of the stock. 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. In the last quarter, insiders sold 165,347 shares of company stock worth $21,827,342. 4.61% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Okta

Several large investors have recently modified their holdings of OKTA. Washington Trust Advisors Inc. lifted its position in Okta by 64.2% in the 2nd quarter. Washington Trust Advisors Inc. now owns 197 shares of the company's stock worth $27,000 after buying an additional 77 shares during the last quarter. CX Institutional raised its stake in shares of Okta by 5.1% during the second quarter. CX Institutional now owns 2,633 shares of the company's stock worth $359,000 after acquiring an additional 127 shares in the last quarter. EverSource Wealth Advisors LLC raised its stake in shares of Okta by 10.7% during the first quarter. EverSource Wealth Advisors LLC now owns 1,333 shares of the company's stock worth $105,000 after acquiring an additional 129 shares in the last quarter. SteelPeak Wealth LLC lifted its holdings in shares of Okta by 2.8% in the 1st quarter. SteelPeak Wealth LLC now owns 5,166 shares of the company's stock worth $407,000 after acquiring an additional 140 shares during the last quarter. Finally, Utah Retirement Systems lifted its holdings in shares of Okta by 0.6% in the 4th quarter. Utah Retirement Systems now owns 28,605 shares of the company's stock worth $2,473,000 after acquiring an additional 163 shares during the last quarter. 86.64% of the stock is owned by institutional investors.

Okta Stock Performance

The company has a market cap of $27.47 billion, a PE ratio of 115.13, a PEG ratio of 4.70 and a beta of 0.77. The stock's 50 day moving average price is $139.27 and its 200-day moving average price is $104.50.

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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