Okta (NASDAQ:OKTA) Rating Lowered to Hold at Wall Street Zen

Okta (NASDAQ:OKTA) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued on Saturday.

OKTA has been the subject of a number of other research reports. Needham & Company LLC reissued a “buy” rating and set a $110.00 target price on shares of Okta in a research note on Friday, December 12th. Citigroup reaffirmed a “neutral” rating on shares of Okta in a research report on Monday, January 12th. Weiss Ratings restated a “hold (c-)” rating on shares of Okta in a research note on Thursday, January 22nd. Scotiabank cut their price target on Okta from $105.00 to $85.00 and set a “sector perform” rating for the company in a report on Wednesday, December 3rd. Finally, Sanford C. Bernstein restated an “outperform” rating on shares of Okta in a research note on Monday, December 1st. Twenty-five analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $113.88.

Okta Price Performance

Okta stock opened at $86.74 on Friday. Okta has a fifty-two week low of $75.05 and a fifty-two week high of $127.57. The company has a market cap of $15.37 billion, a P/E ratio of 79.58, a price-to-earnings-growth ratio of 3.27 and a beta of 0.77. The firm’s 50 day simple moving average is $88.54 and its 200-day simple moving average is $89.54.

Okta (NASDAQ:OKTA) last announced its earnings results on Tuesday, December 2nd. The company reported $0.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.06. The company had revenue of $742.00 million for the quarter, compared to the consensus estimate of $730.23 million. Okta had a net margin of 6.87% and a return on equity of 3.77%. The company’s revenue was up 11.6% on a year-over-year basis. During the same period in the previous year, the business earned $0.67 EPS. 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, analysts expect that Okta will post 0.42 EPS for the current fiscal year.

Okta declared that its Board of Directors has authorized a share buyback program on Monday, January 5th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the company to repurchase up to 6.8% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s management believes its stock is undervalued.

Insider Activity at Okta

In related news, CFO Brett Tighe sold 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, January 13th. The shares were sold at an average price of $95.07, for a total value of $950,700.00. Following the completion of the sale, the chief financial officer owned 134,385 shares of the company’s stock, valued at $12,775,981.95. This trade represents a 6.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Larissa Schwartz sold 1,899 shares of the business’s stock in a transaction that occurred on Wednesday, January 7th. The stock was sold at an average price of $90.74, for a total transaction of $172,315.26. Following the completion of the transaction, the insider owned 38,164 shares of the company’s stock, valued at $3,463,001.36. This trade represents a 4.74% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 36,727 shares of company stock valued at $3,344,746 over the last three months. 5.68% of the stock is owned by company insiders.

Hedge Funds Weigh In On Okta

Several large investors have recently made changes to their positions in OKTA. Root Financial Partners LLC acquired a new stake in shares of Okta during the 3rd quarter worth approximately $26,000. Elevation Wealth Partners LLC increased its position in shares of Okta by 825.0% in the 4th quarter. Elevation Wealth Partners LLC now owns 296 shares of the company’s stock valued at $26,000 after buying an additional 264 shares in the last quarter. Promus Capital LLC bought a new stake in shares of Okta in the second quarter worth about $27,000. Torren Management LLC bought a new stake in Okta during the 4th quarter worth approximately $32,000. Finally, Kiker Wealth Management LLC increased its position in shares of Okta by 1,159.3% during the second quarter. Kiker Wealth Management LLC now owns 340 shares of the company’s stock worth $34,000 after acquiring an additional 313 shares in the last quarter. Institutional investors and hedge funds own 86.64% of the company’s stock.

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.