Okta (NASDAQ:OKTA) Stock Falls 6.5% - What's Next?

Key Points

• Okta shares fell 6.5% to $195.00 in Friday trading, while volume was about 85% below the stock’s average daily volume.
• Analyst sentiment remains positive overall, with a consensus rating of “Moderate Buy” and an average price target of $202.38; Goldman Sachs and Guggenheim recently raised their targets.
• Okta’s latest quarterly results exceeded expectations, with $1.05 in EPS and $805 million in revenue, though insiders sold approximately $23.9 million of stock over the past three months.

Okta, Inc. (NASDAQ:OKTA - Get Free Report)'s share price was down 6.5% on Friday. The stock traded as low as $196.67 and last traded at $195.00. 550,703 shares traded hands during mid-day trading, a decline of 85% from the average daily volume of 3,568,006 shares. The stock had previously closed at $208.52.

Analysts Set New Price Targets

OKTA has been the subject of a number of analyst reports. The Goldman Sachs Group increased their price target on Okta from $126.00 to $203.00 and gave the stock a "buy" rating in a research note on Friday, August 28th. HC Wainwright initiated coverage on Okta in a research report on Monday, July 6th. They issued a "buy" rating on the stock. HSBC lowered Okta from a "buy" rating to a "hold" rating in a research note on Monday, July 6th. Wall Street Zen cut Okta from a "buy" rating to a "hold" rating in a research report on Monday. Finally, Guggenheim increased their target price on Okta from $188.00 to $227.00 and gave the stock a "buy" rating in a research report on Thursday, September 24th. One investment analyst has rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and eleven have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $202.38.

Okta Trading Down 10.1%

The company has a market capitalization of $32.78 billion, a PE ratio of 113.89, a PEG ratio of 6.59 and a beta of 0.73. The firm's 50-day simple moving average is $179.57 and its 200-day simple moving average is $133.60.

Okta (NASDAQ:OKTA - Get Free Report) last issued its earnings results on Wednesday, August 26th. The company reported $1.05 EPS for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $793.00 million. During the same period last year, the company posted $0.91 earnings per share. The company's quarterly revenue was up 10.6% compared to the same quarter last year. 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, analysts anticipate that Okta, Inc. will post 1.92 EPS for the current year.

Insider Buying and Selling

In other news, CFO Brett Tighe sold 41,251 shares of the firm's stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $162.44, for a total value of $6,700,812.44. Following the completion of the transaction, the chief financial officer directly owned 7,693 shares in the company, valued at $1,249,650.92. This trade represents 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 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 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 transaction of $1,173,994.10. Following the sale, the insider owned 18,668 shares of the company's stock, valued at approximately $3,427,071.44. The trade was 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 137,766 shares of company stock worth $23,927,112 in the last three months. Corporate insiders own 4.61% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in OKTA. Allspring Global Investments Holdings LLC boosted its holdings in Okta by 71.9% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 3,553,091 shares of the company's stock worth $281,209,000 after buying an additional 1,485,963 shares during the last quarter. Pictet Asset Management Holding SA raised its stake in Okta by 28.4% in the 1st quarter. Pictet Asset Management Holding SA now owns 2,490,681 shares of the company's stock valued at $195,844,000 after purchasing an additional 550,328 shares during the last quarter. Swedbank AB raised its stake in Okta by 21.9% in the 1st quarter. Swedbank AB now owns 2,216,588 shares of the company's stock valued at $174,468,000 after purchasing an additional 397,507 shares during the last quarter. Bank of America Corp DE lifted its holdings in Okta by 0.4% in the 1st quarter. Bank of America Corp DE now owns 1,496,896 shares of the company's stock valued at $117,821,000 after purchasing an additional 6,533 shares in the last quarter. Finally, Senvest Management LLC lifted its holdings in Okta by 54.5% in the 1st quarter. Senvest Management LLC now owns 830,515 shares of the company's stock valued at $65,370,000 after purchasing an additional 292,900 shares in the last quarter. 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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