Rakuten Investment Management Inc. Purchases New Holdings in Okta, Inc. $OKTA

Rakuten Investment Management Inc. purchased a new position in Okta, Inc. (NASDAQ:OKTA) during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 10,801 shares of the company’s stock, valued at approximately $2,213,000.

A number of other hedge funds also recently modified their holdings of OKTA. Burkett Financial Services LLC purchased a new position in Okta in the third quarter valued at approximately $26,000. Washington Trust Advisors Inc. increased its position in Okta by 64.2% in the second quarter. Washington Trust Advisors Inc. now owns 197 shares of the company’s stock worth $27,000 after buying an additional 77 shares during the last quarter. Laurel Wealth Advisors LLC purchased a new stake in Okta in the third quarter worth $33,000. Polaris Financial Partners purchased a new stake in Okta in the third quarter worth $36,000. Finally, MassMutual Private Wealth & Trust FSB raised its stake in shares of Okta by 279.5% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 296 shares of the company’s stock valued at $40,000 after buying an additional 218 shares during the period. Institutional investors own 86.64% of the company’s stock.

Insider Buying and Selling

In related news, insider Eric Kelleher sold 6,395 shares of Okta stock in a transaction on Friday, September 18th. The stock was sold at an average price of $183.58, for a total transaction of $1,173,994.10. Following the completion of the sale, the insider owned 18,668 shares of the company’s stock, valued at approximately $3,427,071.44. This trade represents a 25.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Todd McKinnon sold 48,822 shares of the business’s stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $193.48, for a total value of $9,446,080.56. Following the transaction, the chief executive officer owned 44,029 shares of the company’s stock, valued at approximately $8,518,730.92. The trade was a 52.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 137,766 shares of company stock worth $23,927,112. Corporate insiders own 4.61% of the company’s stock.

Okta Price Performance

NASDAQ OKTA opened at $168.69 on Friday. The company’s 50 day simple moving average is $196.81 and its two-hundred day simple moving average is $126.92. Okta, Inc. has a 1 year low of $62.66 and a 1 year high of $235.00. The stock has a market capitalization of $29.49 billion, a PE ratio of 101.62, a P/E/G ratio of 5.25 and a beta of 0.74.

Okta (NASDAQ:OKTA) last released its quarterly earnings results on Wednesday, August 26th. The company reported $1.05 EPS for the quarter, beating analysts’ consensus estimates of $0.96 by $0.09. The firm had revenue of $805.00 million during the quarter, compared to analyst estimates of $793.00 million. Okta had a net margin of 9.63% and a return on equity of 4.50%. The business’s revenue for the quarter was up 10.6% on a year-over-year basis. During the same period in the previous year, the business earned $0.91 EPS. Okta has set its FY 2027 guidance at 3.900-3.940 EPS and its Q3 2027 guidance at 0.920-0.940 EPS. On average, research analysts anticipate that Okta, Inc. will post 1.92 EPS for the current year.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. Oppenheimer upped their price target on Okta from $190.00 to $227.00 and gave the company an “outperform” rating in a research report on Thursday, September 24th. The Goldman Sachs Group increased their price target on Okta from $126.00 to $203.00 and gave the stock a “buy” rating in a research note on Friday, August 28th. Canaccord Genuity Group lifted their price objective on Okta from $115.00 to $175.00 and gave the stock a “buy” rating in a report on Thursday, August 27th. JPMorgan Chase & Co. boosted their price objective on Okta from $165.00 to $190.00 and gave the company an “overweight” rating in a research note on Thursday, August 27th. Finally, TD Cowen upped their price objective on shares of Okta from $175.00 to $200.00 and gave the company a “hold” rating in a report on Thursday, September 24th. Two analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $202.38.

Key Headlines Impacting Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: ETFs bought about $99.5 million of Okta shares on Wednesday, with 36 funds buying versus 15 selling. In a related report, the Invesco S&P 500 Equal Weight Technology ETF initiated an $89.1 million position in Okta, making it its only addition while trimming 74 other holdings. The buying may offer support, though both reports refer to Wednesday’s activity. ETF buying article Invesco RSPT article
• Negative Sentiment: Okta shares declined alongside other software names as Wall Street retreated from AI-associated stocks, a rotation that hit recent software winners. This broad sector-driven selling was a key near-term headwind. Software sell-off article
• Negative Sentiment: A Seeking Alpha contributor downgraded Okta to Sell, arguing that its valuation bubble may be deflating. The bearish valuation view could weigh on sentiment, particularly amid the wider pullback in software stocks. Seeking Alpha downgrade

Okta Profile

Okta, Inc provides cloud-based identity and access management services. Its platform helps organizations manage how employees, customers, partners and other users sign in to applications and access digital resources.

Okta’s products include single sign-on, multifactor authentication, identity governance and user lifecycle management. Through Auth0, which Okta acquired in 2021, the company also offers tools that developers can use to add identity and authentication features to customer-facing applications.

Founded in 2009 by Todd McKinnon and Frederic Kerrest, Okta serves organizations around the world across a range of industries.