Okta (NASDAQ:OKTA) Share Price Crosses Below 50-Day Moving Average - Time to Sell?

Key Points

• Okta shares fell below their 50-day moving average of $193.78, trading as low as $183.12 and closing at $184.87, signaling near-term technical weakness.
• Despite the decline, analysts maintain a “Moderate Buy” consensus with an average price target of $202.38; recent targets range as high as $235.
• Okta exceeded quarterly expectations, reporting $1.05 in EPS and $805 million in revenue, while insiders sold about 137,766 shares worth $23.9 million over the past 90 days.

Okta, Inc. (NASDAQ:OKTA - Get Free Report)'s stock price crossed below its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $193.78 and traded as low as $183.12. Okta shares last traded at $184.87, with a volume of 5,892,363 shares changing hands.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on OKTA. Roth Capital lifted their price target on Okta from $155.00 to $235.00 and gave the stock a "buy" rating in a research report on Thursday, September 24th. HSBC downgraded shares of Okta from a "buy" rating to a "hold" rating in a research report on Monday, July 6th. New Street Research set a $235.00 price objective on shares of Okta in a research note on Thursday, September 24th. Capital One Financial raised shares of Okta from an "equal weight" rating to an "overweight" rating and lifted their target price for the stock from $126.00 to $171.00 in a report on Thursday, July 16th. Finally, Royal Bank Of Canada upped their target price on shares of Okta from $195.00 to $230.00 and gave the stock an "outperform" rating in a research note on Thursday, September 24th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $202.38.

Okta Price Performance

The company has a 50 day moving average price of $193.78 and a two-hundred day moving average price of $125.13. The stock has a market cap of $32.32 billion, a PE ratio of 111.37, a PEG ratio of 6.93 and a beta of 0.73.

Okta (NASDAQ:OKTA - Get Free Report) last announced its quarterly earnings results on Wednesday, August 26th. The company reported $1.05 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 the consensus estimate of $793.00 million. During the same period in the prior year, the company posted $0.91 earnings per share. The company's quarterly 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. As a group, equities analysts predict that Okta, Inc. will post 1.92 earnings per share for the current fiscal year.

Insider Buying and Selling at Okta

In other news, insider Eric Kelleher sold 6,395 shares of Okta stock in a transaction that occurred on Friday, September 18th. The shares were sold at an average price of $183.58, for a total value of $1,173,994.10. Following the completion of the sale, the insider directly owned 18,668 shares in the company, valued at $3,427,071.44. The trade was a 25.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brett Tighe sold 41,251 shares of the business's 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 transaction, the chief financial officer directly owned 7,693 shares of the company's stock, valued at $1,249,650.92. The trade was a 84.28% 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 90 days, insiders have sold 137,766 shares of company stock worth $23,927,112. Company insiders own 4.61% of the company's stock.

Institutional Investors Weigh In On Okta

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. CenterBook Partners LP bought a new position in shares of Okta in the third quarter worth about $6,378,000. Heritage Family Offices LLP bought a new position in shares of Okta during the 3rd quarter valued at approximately $198,000. Calamos Wealth Management LLC purchased a new stake in Okta in the 3rd quarter worth approximately $243,000. Calamos Advisors LLC purchased a new stake in Okta in the 3rd quarter worth approximately $3,990,000. Finally, Ariose Capital Management Ltd purchased a new stake in Okta in the 3rd quarter worth approximately $12,221,000. Hedge funds and other institutional investors own 86.64% of the company's stock.

Okta Company Profile

Okta, Inc provides cloud-based identity and access management solutions for organizations worldwide. Its platform helps businesses securely connect employees, contractors, customers and partners with the applications, systems and services they need to use.

The company's offerings include single sign-on, multifactor authentication, identity governance, lifecycle management, directory services and privileged access management. Okta also provides customer identity solutions through Auth0, its developer-focused identity platform, which supports authentication and authorization for applications and digital experiences.

Okta serves enterprises, government agencies, small and medium-sized businesses, developers and other organizations across North America, Europe, Asia-Pacific and additional international markets.

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