Okta, Inc. (NASDAQ:OKTA) Receives Average Rating of “Moderate Buy” from Analysts

Shares of Okta, Inc. (NASDAQ:OKTA) have earned a consensus recommendation of “Moderate Buy” from the thirty-nine brokerages that are presently covering the stock, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, twelve have issued a hold rating and twenty-five have issued a buy rating on the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $113.8824.

A number of research firms recently issued reports on OKTA. Piper Sandler lifted their target price on Okta from $95.00 to $100.00 and gave the company a “neutral” rating in a research report on Monday, January 5th. Sanford C. Bernstein restated an “outperform” rating on shares of Okta in a research note on Monday, December 1st. Citigroup reaffirmed a “neutral” rating on shares of Okta in a research report on Monday, January 12th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Okta in a research note on Wednesday, October 8th. Finally, BMO Capital Markets decreased their target price on shares of Okta from $112.00 to $90.00 and set a “market perform” rating for the company in a research note on Wednesday, December 3rd.

Insider Activity

In other news, insider Eric Robert Kelleher sold 8,370 shares of the company’s stock in a transaction dated Thursday, December 18th. The shares were sold at an average price of $90.19, for a total value of $754,890.30. Following the sale, the insider directly owned 11,266 shares of the company’s stock, valued at approximately $1,016,080.54. This represents a 42.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Todd Mckinnon sold 11,286 shares of the firm’s stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $90.96, for a total transaction of $1,026,574.56. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 36,727 shares of company stock valued at $3,344,746 over the last quarter. 5.68% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in OKTA. Norges Bank bought a new stake in shares of Okta during the second quarter worth approximately $211,923,000. Allspring Global Investments Holdings LLC lifted its holdings in Okta by 113.7% during the 4th quarter. Allspring Global Investments Holdings LLC now owns 2,067,128 shares of the company’s stock worth $172,895,000 after purchasing an additional 1,099,962 shares during the last quarter. Vanguard Group Inc. boosted its stake in Okta by 5.7% in the 3rd quarter. Vanguard Group Inc. now owns 19,803,227 shares of the company’s stock valued at $1,815,956,000 after purchasing an additional 1,074,977 shares during the period. Alyeska Investment Group L.P. boosted its stake in Okta by 276.9% in the 3rd quarter. Alyeska Investment Group L.P. now owns 1,403,499 shares of the company’s stock valued at $128,701,000 after purchasing an additional 1,031,083 shares during the period. Finally, Ninety One UK Ltd grew its holdings in Okta by 52.1% in the 2nd quarter. Ninety One UK Ltd now owns 2,744,524 shares of the company’s stock valued at $274,370,000 after buying an additional 939,589 shares in the last quarter. 86.64% of the stock is currently owned by institutional investors.

Okta Stock Down 0.8%

Shares of OKTA stock opened at $90.76 on Friday. Okta has a 12 month low of $75.05 and a 12 month high of $127.57. The company’s fifty day simple moving average is $87.23 and its 200-day simple moving average is $90.06. The firm has a market cap of $16.09 billion, a PE ratio of 83.27, a P/E/G ratio of 4.28 and a beta of 0.76.

Okta (NASDAQ:OKTA) last released its earnings results on Tuesday, December 2nd. The company reported $0.82 earnings per share for the quarter, beating analysts’ consensus estimates of $0.76 by $0.06. Okta had a net margin of 6.87% and a return on equity of 3.77%. The business had revenue of $742.00 million during the quarter, compared to the consensus estimate of $730.23 million. During the same quarter last year, the firm earned $0.67 earnings per share. The firm’s revenue for the quarter was up 11.6% compared to the same quarter last year. Okta has set its FY 2026 guidance at 3.430-3.440 EPS and its Q4 2026 guidance at 0.840-0.850 EPS. On average, equities analysts predict that Okta will post 0.42 earnings per share for the current fiscal year.

Okta announced that its Board of Directors has approved a share repurchase plan on Monday, January 5th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the company to buy up to 6.8% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Okta Company Profile

Okta, Inc is a publicly traded provider of identity and access management solutions, headquartered in San Francisco, California. Founded in 2009 by Todd McKinnon and Frederic Kerrest, the company completed its initial public offering in April 2017. Under the leadership of McKinnon as chief executive officer and Kerrest as chief operating officer, Okta has grown into a leading vendor in the cybersecurity space, focusing on secure user authentication, single sign-on and lifecycle management for digital identities.

At the core of Okta’s offering is the Okta Identity Cloud, a suite of cloud-native services that enable organizations to manage user access across web and mobile applications, on-premises systems and APIs.