Okta (NASDAQ:OKTA) Reaches New 52-Week Low – Should You Sell?

Okta, Inc. (NASDAQ:OKTA) shares hit a new 52-week low on Saturday . The stock traded as low as $73.74 and last traded at $74.29, with a volume of 6059072 shares. The stock had previously closed at $81.80.

Analysts Set New Price Targets

A number of equities analysts have weighed in on OKTA shares. Truist Financial cut their target price on shares of Okta from $125.00 to $115.00 and set a “buy” rating for the company in a research report on Tuesday, February 17th. TD Cowen restated a “hold” rating on shares of Okta in a research note on Wednesday, December 3rd. Berenberg Bank initiated coverage on shares of Okta in a report on Tuesday, November 18th. They issued a “buy” rating and a $145.00 price objective for the company. JPMorgan Chase & Co. lowered their target price on shares of Okta from $140.00 to $115.00 and set an “overweight” rating on the stock in a report on Monday, December 1st. Finally, Needham & Company LLC restated a “buy” rating and set a $110.00 target price on shares of Okta in a research report on Friday, December 12th. Twenty-five investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $112.56.

Okta Stock Performance

The business’s 50-day moving average price is $88.12 and its 200 day moving average price is $88.51. The stock has a market capitalization of $13.17 billion, a PE ratio of 68.16, a price-to-earnings-growth ratio of 2.98 and a beta of 0.77.

Okta (NASDAQ:OKTA) last issued its quarterly earnings data on Tuesday, December 2nd. The company reported $0.82 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.76 by $0.06. Okta had a return on equity of 3.77% and a net margin of 6.87%.The company had revenue of $742.00 million for the quarter, compared to the consensus estimate of $730.23 million. During the same quarter last year, the business posted $0.67 earnings per share. The firm’s revenue 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. As a group, equities research analysts predict that Okta, Inc. will post 0.42 earnings per share for the current year.

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

Insider Activity at Okta

In other news, insider Eric Robert Kelleher sold 8,370 shares of the firm’s stock in a transaction on Thursday, December 18th. The shares were sold at an average price of $90.19, for a total transaction of $754,890.30. Following the sale, the insider owned 11,266 shares in the company, valued at approximately $1,016,080.54. This trade represents a 42.63% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Brett Tighe sold 10,000 shares of Okta stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $95.07, for a total transaction of $950,700.00. Following the sale, the chief financial officer directly owned 134,385 shares of the company’s stock, valued at $12,775,981.95. This represents a 6.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 37,245 shares of company stock valued at $3,385,624 in the last ninety days. 5.68% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Okta

A number of large investors have recently added to or reduced their stakes in the company. Invesco Ltd. boosted its holdings in shares of Okta by 19.1% in the 4th quarter. Invesco Ltd. now owns 548,741 shares of the company’s stock worth $47,450,000 after purchasing an additional 88,112 shares in the last quarter. Rare Wolf Capital LLC bought a new stake in Okta in the 4th quarter worth approximately $390,000. Corient Private Wealth LLC boosted its stake in Okta by 515.8% in the fourth quarter. Corient Private Wealth LLC now owns 68,854 shares of the company’s stock worth $5,954,000 after buying an additional 57,672 shares in the last quarter. Beacon Pointe Advisors LLC boosted its stake in Okta by 17.8% in the fourth quarter. Beacon Pointe Advisors LLC now owns 97,190 shares of the company’s stock worth $8,404,000 after buying an additional 14,664 shares in the last quarter. Finally, Mackenzie Financial Corp grew its position in Okta by 37.0% during the fourth quarter. Mackenzie Financial Corp now owns 29,461 shares of the company’s stock valued at $2,571,000 after acquiring an additional 7,964 shares during the last quarter. Hedge funds and other institutional investors own 86.64% of the company’s stock.

About Okta

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.