Okta (NASDAQ:OKTA) Reaches New 12-Month High - Still a Buy?

Key Points

• Okta shares reached a new 52-week high, trading as high as $235 and most recently at $227.08, supported by strong momentum above both its 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $201.10, below the stock’s current price.
• Okta exceeded quarterly earnings and revenue expectations, reporting $1.05 in EPS and $805 million in revenue, while insiders sold approximately $23.9 million of stock over the past 90 days.

Okta, Inc. (NASDAQ:OKTA - Get Free Report)'s stock price hit a new 52-week high on Tuesday. The stock traded as high as $235.00 and last traded at $227.08, with a volume of 2,885,827 shares trading hands. The stock had previously closed at $232.13.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. The Goldman Sachs Group upped their price objective on shares of Okta from $126.00 to $203.00 and gave the stock a "buy" rating in a research report on Friday, August 28th. Piper Sandler upped their price objective on Okta from $105.00 to $160.00 and gave the company a "neutral" rating in a research note on Thursday, August 27th. BTIG Research reissued a "buy" rating and set a $219.00 target price on shares of Okta in a research report on Thursday, September 24th. Barclays upped their price objective on Okta from $180.00 to $215.00 and gave the company an "overweight" rating in a research note on Thursday, September 24th. Finally, Mizuho increased their price objective on Okta from $165.00 to $200.00 and gave the company a "neutral" rating in a report on Thursday, September 24th. 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. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $201.10.

Okta Stock Performance

The firm has a market cap of $39.70 billion, a P/E ratio of 136.80, a P/E/G ratio of 7.22 and a beta of 0.73. The firm has a 50 day simple moving average of $175.39 and a 200 day simple moving average of $130.67.

Okta (NASDAQ:OKTA - Get Free Report) last announced its quarterly earnings results on Wednesday, August 26th. The company reported $1.05 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.09. Okta had a return on equity of 4.50% and a net margin of 9.63%. The firm had revenue of $805.00 million for the quarter, compared to analysts' expectations of $793.00 million. During the same period in the prior year, the business posted $0.91 earnings per share. The company'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. Sell-side analysts predict that Okta, Inc. will post 1.92 EPS for the current fiscal year.

Insider Buying and Selling at Okta

In other Okta news, CFO Brett Tighe sold 41,251 shares of Okta stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $162.44, for a total transaction of $6,700,812.44. Following the completion of the sale, the chief financial officer directly owned 7,693 shares in the company, valued at $1,249,650.92. The trade was a 84.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Todd McKinnon sold 48,822 shares of the stock in a transaction on Tuesday, September 22nd. The stock was sold at an average price of $193.48, for a total transaction of $9,446,080.56. Following the completion of the transaction, the chief executive officer directly owned 44,029 shares in the company, valued at $8,518,730.92. The trade was a 52.58% decrease in their position. 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 137,766 shares of company stock valued at $23,927,112 in the last 90 days. Corporate insiders own 4.61% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in OKTA. Versant Capital Management Inc raised its holdings in Okta by 11.9% during the 3rd quarter. Versant Capital Management Inc now owns 563 shares of the company's stock valued at $118,000 after buying an additional 60 shares during the period. Washington Trust Advisors Inc. lifted its position in 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 buying an additional 77 shares during the last quarter. Burkett Financial Services LLC bought a new stake in Okta in the third quarter worth $26,000. CX Institutional boosted its stake in Okta by 5.1% during the second quarter. CX Institutional now owns 2,633 shares of the company's stock worth $359,000 after buying an additional 127 shares during the period. Finally, EverSource Wealth Advisors LLC lifted its stake in Okta by 10.7% in the first quarter. EverSource Wealth Advisors LLC now owns 1,333 shares of the company's stock worth $105,000 after purchasing an additional 129 shares during the last quarter. 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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