Roth Capital Issues Negative Outlook for Okta Earnings

Key Points

• Roth Capital has revised down Okta's Q3 2026 earnings per share (EPS) estimate to $0.20, down from $0.24, while maintaining a "Buy" rating with a target price of $119.00.
• Okta's recent quarterly earnings report showed EPS of $0.91, beating estimates of $0.84, along with a revenue of $728 million, a 12.7% year-over-year increase.
• Institutional investors hold 86.64% of Okta's stock, reflecting significant interest, and multiple research firms have adjusted their price targets recently, illustrating varied market perspectives on Okta's valuation.

Okta, Inc. (NASDAQ:OKTA - Free Report) - Investment analysts at Roth Capital decreased their Q3 2026 earnings per share (EPS) estimates for shares of Okta in a report issued on Wednesday, August 27th. Roth Capital analyst I. Koujalgi now expects that the company will earn $0.20 per share for the quarter, down from their prior forecast of $0.24. Roth Capital currently has a "Buy" rating and a $119.00 target price on the stock. The consensus estimate for Okta's current full-year earnings is $0.42 per share. Roth Capital also issued estimates for Okta's Q4 2026 earnings at $0.28 EPS, FY2026 earnings at $1.16 EPS, Q1 2027 earnings at $0.28 EPS, Q2 2027 earnings at $0.35 EPS, Q3 2027 earnings at $0.35 EPS, Q4 2027 earnings at $0.40 EPS and FY2027 earnings at $1.41 EPS.

Okta (NASDAQ:OKTA - Get Free Report) last issued its earnings results on Tuesday, August 26th. The company reported $0.91 earnings per share for the quarter, beating analysts' consensus estimates of $0.84 by $0.07. The company had revenue of $728,000 billion for the quarter, compared to the consensus estimate of $711.84 million. Okta had a return on equity of 3.31% and a net margin of 6.08%.The firm's quarterly revenue was up 12.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.72 EPS. Okta has set its FY 2026 guidance at 3.330-3.380 EPS. Q3 2026 guidance at 0.740-0.750 EPS.

Several other equities research analysts have also issued reports on OKTA. DA Davidson reduced their price target on Okta from $145.00 to $140.00 and set a "buy" rating for the company in a report on Wednesday, May 28th. Mizuho reduced their price target on Okta from $135.00 to $130.00 and set an "outperform" rating for the company in a report on Wednesday, May 28th. Stifel Nicolaus lifted their price target on Okta from $120.00 to $130.00 and gave the company a "buy" rating in a report on Wednesday, May 28th. Royal Bank Of Canada lifted their price target on Okta from $113.00 to $115.00 and gave the company an "outperform" rating in a report on Wednesday, August 27th. Finally, Bank of America reiterated an "underperform" rating and set a $75.00 price target on shares of Okta in a report on Wednesday, August 27th. Twenty-two equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, Okta presently has an average rating of "Moderate Buy" and an average target price of $118.25.

Okta Stock Performance

Shares of Okta stock traded up $0.90 during trading on Monday, hitting $90.72. 1,217,908 shares of the stock traded hands, compared to its average volume of 3,738,607. The stock has a market cap of $15.88 billion, a P/E ratio of 106.59, a PEG ratio of 4.52 and a beta of 0.83. Okta has a twelve month low of $70.56 and a twelve month high of $127.57. The company has a fifty day moving average price of $94.47 and a two-hundred day moving average price of $102.11.

Insider Buying and Selling at Okta

In related news, CRO Jonathan James Addison sold 9,000 shares of Okta stock in a transaction dated Friday, July 25th. The stock was sold at an average price of $100.00, for a total transaction of $900,000.00. Following the sale, the executive directly owned 7,067 shares of the company's stock, valued at $706,700. This trade represents a 56.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Eric Robert Kelleher sold 16,018 shares of Okta stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $91.81, for a total value of $1,470,612.58. Following the sale, the insider directly owned 7,044 shares in the company, valued at approximately $646,709.64. This trade represents a 69.46% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 88,594 shares of company stock valued at $8,382,790 over the last quarter. Company insiders own 5.68% of the company's stock.

Institutional Investors Weigh In On Okta

A number of institutional investors have recently added to or reduced their stakes in OKTA. Massachusetts Financial Services Co. MA raised its position in Okta by 325.6% in the first quarter. Massachusetts Financial Services Co. MA now owns 3,699,944 shares of the company's stock worth $389,308,000 after purchasing an additional 2,830,582 shares in the last quarter. Norges Bank acquired a new position in Okta in the second quarter worth about $211,923,000. Alkeon Capital Management LLC acquired a new position in Okta in the first quarter worth about $199,918,000. Ameriprise Financial Inc. raised its position in Okta by 2,135.7% in the fourth quarter. Ameriprise Financial Inc. now owns 1,914,254 shares of the company's stock worth $150,845,000 after purchasing an additional 1,828,630 shares in the last quarter. Finally, Ninety One UK Ltd acquired a new position in Okta in the first quarter worth about $189,915,000. 86.64% of the stock is owned by institutional investors and hedge funds.

Okta Company Profile

Okta, Inc operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Sign-On that enables users to access applications in the cloud or on-premises from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data; API Access Management enables organizations to secure APIs; Access Gateway enables organizations to extend Workforce Identity Cloud; and Okta Device Access enables end users to securely log in to devices with Okta credentials.