William Blair Has Optimistic Outlook of Okta Q2 Earnings

Okta, Inc. (NASDAQ:OKTA - Free Report) - William Blair lifted their Q2 2026 earnings estimates for Okta in a research note issued on Wednesday, May 28th. William Blair analyst J. Ho now expects that the company will earn $0.32 per share for the quarter, up from their previous forecast of $0.26. The consensus estimate for Okta's current full-year earnings is $0.42 per share. William Blair also issued estimates for Okta's Q4 2026 earnings at $0.32 EPS, FY2026 earnings at $1.21 EPS, Q1 2027 earnings at $0.32 EPS, Q2 2027 earnings at $0.35 EPS, Q4 2027 earnings at $0.46 EPS and FY2027 earnings at $1.51 EPS.

Several other brokerages also recently commented on OKTA. Barclays lowered their target price on Okta from $135.00 to $120.00 and set an "equal weight" rating for the company in a research note on Wednesday. Cantor Fitzgerald assumed coverage on Okta in a research note on Monday, March 31st. They set an "overweight" rating and a $130.00 target price for the company. Royal Bank of Canada lowered their target price on Okta from $143.00 to $135.00 and set an "outperform" rating for the company in a research note on Wednesday. Roth Capital reissued a "buy" rating and set a $119.00 target price on shares of Okta in a research note on Wednesday. Finally, KeyCorp boosted their target price on Okta from $125.00 to $135.00 and gave the stock an "overweight" rating in a research note on Tuesday, March 4th. One equities research analyst has rated the stock with a sell rating, fourteen have issued a hold rating and twenty have issued a buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $121.59.

Okta Price Performance

NASDAQ OKTA traded down $3.83 during trading on Friday, hitting $102.80. 7,711,011 shares of the company's stock were exchanged, compared to its average volume of 2,942,376. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.06. The company has a market cap of $17.85 billion, a PE ratio of -293.71, a P/E/G ratio of 6.42 and a beta of 0.96. Okta has a fifty-two week low of $70.56 and a fifty-two week high of $127.57. The stock's 50 day moving average price is $109.26 and its two-hundred day moving average price is $96.97.

Okta (NASDAQ:OKTA - Get Free Report) last posted its quarterly earnings data on Tuesday, May 27th. The company reported $0.86 earnings per share for the quarter, topping the consensus estimate of $0.77 by $0.09. Okta had a negative net margin of 1.54% and a positive return on equity of 0.47%. The business had revenue of $688.00 million during the quarter, compared to analysts' expectations of $680.14 million. During the same quarter in the prior year, the business posted $0.65 earnings per share. Okta's revenue was up 11.5% compared to the same quarter last year.

Hedge Funds Weigh In On Okta

A number of large investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its holdings in shares of Okta by 3.4% in the 1st quarter. Vanguard Group Inc. now owns 17,792,886 shares of the company's stock worth $1,872,167,000 after purchasing an additional 582,956 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its holdings in shares of Okta by 325.6% in the 1st 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. Marshall Wace LLP lifted its holdings in shares of Okta by 35.5% in the 4th quarter. Marshall Wace LLP now owns 3,583,937 shares of the company's stock worth $282,414,000 after purchasing an additional 938,509 shares in the last quarter. Norges Bank bought a new position in shares of Okta in the 4th quarter worth $234,992,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Okta by 76.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,748,847 shares of the company's stock worth $289,234,000 after purchasing an additional 1,189,222 shares in the last quarter. 86.64% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Okta news, CRO Jonathan James Addison sold 7,005 shares of the stock in a transaction that occurred on Friday, April 11th. The stock was sold at an average price of $101.19, for a total transaction of $708,835.95. Following the transaction, the executive now directly owns 19,067 shares in the company, valued at approximately $1,929,389.73. This represents a 26.87% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Larissa Schwartz sold 11,552 shares of the stock in a transaction that occurred on Wednesday, March 19th. The stock was sold at an average price of $114.09, for a total value of $1,317,967.68. Following the transaction, the insider now owns 22,125 shares in the company, valued at $2,524,241.25. The trade was a 34.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 154,452 shares of company stock worth $16,347,360. Corporate insiders own 5.68% of the company's stock.

About Okta

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.