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

Okta, Inc. (NASDAQ:OKTA) has been assigned a consensus recommendation of “Moderate Buy” from the thirty-nine ratings firms that are currently covering the stock, MarketBeat Ratings reports. Two analysts have rated the stock with a sell recommendation, twelve have assigned a hold recommendation and twenty-five have assigned a buy recommendation to the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $113.8824.

Several equities research analysts have weighed in on the stock. Morgan Stanley lowered their target price on shares of Okta from $123.00 to $110.00 and set an “overweight” rating for the company in a research note on Wednesday, December 3rd. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Okta in a report on Wednesday, December 17th. Barclays cut their target price on shares of Okta from $112.00 to $95.00 and set an “equal weight” rating for the company in a research note on Tuesday, November 18th. Berenberg Bank started coverage on shares of Okta in a research report on Tuesday, November 18th. They set a “buy” rating and a $145.00 price target on the stock. Finally, JPMorgan Chase & Co. decreased 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.

Insider Buying and Selling

In other Okta news, insider Larissa Schwartz sold 1,899 shares of the stock in a transaction dated Wednesday, January 7th. The stock was sold at an average price of $90.74, for a total value of $172,315.26. Following the sale, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Brett Tighe sold 10,000 shares of the stock in a transaction 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 transaction, the chief financial officer directly owned 134,385 shares in the company, valued at $12,775,981.95. This trade represents a 6.93% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 36,727 shares of company stock valued at $3,344,746 in the last three months. 5.68% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Okta

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Fluent Financial LLC boosted its stake in Okta by 94.9% in the 2nd quarter. Fluent Financial LLC now owns 10,825 shares of the company’s stock valued at $1,082,000 after buying an additional 5,272 shares in the last quarter. Ninety One SA PTY Ltd lifted its position in Okta by 57.9% during the 2nd quarter. Ninety One SA PTY Ltd now owns 49,209 shares of the company’s stock worth $4,920,000 after buying an additional 18,046 shares in the last quarter. US Bancorp DE lifted its position in shares of Okta by 478.0% during the second quarter. US Bancorp DE now owns 408,888 shares of the company’s stock worth $40,877,000 after purchasing an additional 338,143 shares in the last quarter. Smith Group Asset Management LLC raised its position in Okta by 2.0% in the 2nd quarter. Smith Group Asset Management LLC now owns 242,793 shares of the company’s stock worth $24,272,000 after purchasing an additional 4,798 shares during the last quarter. Finally, Ninety One UK Ltd boosted its position 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 during the last quarter. 86.64% of the stock is currently owned by hedge funds and other institutional investors.

Okta Price Performance

Okta stock opened at $84.48 on Friday. The firm has a 50-day moving average of $88.12 and a two-hundred day moving average of $89.84. The stock has a market cap of $14.97 billion, a price-to-earnings ratio of 77.50, a price-to-earnings-growth ratio of 4.01 and a beta of 0.76. Okta has a 1 year low of $75.05 and a 1 year high of $127.57.

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

Okta announced that its Board of Directors has authorized a stock repurchase program on Monday, January 5th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the company to purchase up to 6.8% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its shares are undervalued.

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.