Okta (NASDAQ:OKTA) Trading Down 7.3% – Should You Sell?

Okta, Inc. (NASDAQ:OKTA)’s stock price traded down 7.3% during trading on Friday . The stock traded as low as $72.89 and last traded at $73.5850. 838,657 shares traded hands during mid-day trading, a decline of 74% from the average session volume of 3,221,271 shares. The stock had previously closed at $79.38.

Wall Street Analyst Weigh In

OKTA has been the subject of a number of recent analyst reports. Truist Financial lowered their price objective on Okta from $115.00 to $100.00 and set a “buy” rating for the company in a research note on Thursday, March 5th. Canaccord Genuity Group cut their target price on Okta from $120.00 to $95.00 and set a “buy” rating on the stock in a research report on Thursday, March 5th. UBS Group reduced their target price on Okta from $130.00 to $115.00 and set a “buy” rating for the company in a research note on Thursday, March 5th. Stephens decreased their price target on shares of Okta from $120.00 to $95.00 and set an “overweight” rating for the company in a research report on Thursday, March 5th. Finally, Barclays dropped their price target on shares of Okta from $95.00 to $85.00 and set an “equal weight” rating for the company in a research note on Tuesday, February 24th. One analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $103.25.

Okta Stock Down 7.8%

The company has a 50 day simple moving average of $81.94 and a 200-day simple moving average of $86.19. The stock has a market cap of $12.95 billion, a price-to-earnings ratio of 55.90, a PEG ratio of 3.05 and a beta of 0.79.

Okta (NASDAQ:OKTA) last issued its earnings results on Wednesday, March 4th. The company reported $0.90 EPS for the quarter, topping the consensus estimate of $0.85 by $0.05. The company had revenue of $761.00 million during the quarter, compared to analyst estimates of $749.87 million. Okta had a return on equity of 4.18% and a net margin of 8.05%.The business’s revenue was up 11.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.78 EPS. Okta has set its FY 2027 guidance at 3.740-3.820 EPS and its Q1 2027 guidance at 0.840-0.860 EPS. On average, equities research analysts expect that Okta, Inc. will post 0.42 EPS for the current fiscal year.

Okta announced that its board has authorized a stock repurchase plan 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 stock through open market purchases. Stock buyback plans are typically an indication that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling at Okta

In related news, insider Larissa Schwartz sold 1,836 shares of the business’s stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $79.89, for a total transaction of $146,678.04. Following the completion of the sale, the insider owned 79,422 shares of the company’s stock, valued at $6,345,023.58. This represents a 2.26% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Todd Mckinnon sold 11,263 shares of the stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $81.01, for a total transaction of $912,415.63. Following the sale, the chief executive officer owned 97,083 shares in the company, valued at approximately $7,864,693.83. This trade represents a 10.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 46,061 shares of company stock valued at $3,884,119 over the last three months. 5.68% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Okta

Institutional investors have recently made changes to their positions in the stock. Integrated Wealth Concepts LLC bought a new position in Okta during the 1st quarter worth $225,000. NewEdge Advisors LLC lifted its stake in Okta by 853.4% in the first quarter. NewEdge Advisors LLC now owns 5,530 shares of the company’s stock valued at $582,000 after buying an additional 4,950 shares during the last quarter. Sivia Capital Partners LLC bought a new stake in Okta in the second quarter valued at $244,000. Cetera Investment Advisers boosted its holdings in shares of Okta by 22.7% during the second quarter. Cetera Investment Advisers now owns 27,486 shares of the company’s stock valued at $2,748,000 after acquiring an additional 5,090 shares during the period. Finally, Charles Schwab Investment Management Inc. boosted its holdings in shares of Okta by 3.0% during the second quarter. Charles Schwab Investment Management Inc. now owns 1,244,062 shares of the company’s stock valued at $124,369,000 after acquiring an additional 36,304 shares during the period. 86.64% of the stock is owned by institutional investors.

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.