Okta (NASDAQ:OKTA – Get Free Report) was upgraded by investment analysts at Sanford C. Bernstein from a “hold” rating to a “strong-buy” rating in a note issued to investors on Thursday,Zacks.com reports.
Other analysts have also issued research reports about the company. Piper Sandler increased their price target on Okta from $105.00 to $160.00 and gave the company a “neutral” rating in a report on Thursday. Bank of America raised shares of Okta from an “underperform” rating to a “neutral” rating and lifted their price objective for the stock from $75.00 to $170.00 in a research note on Thursday. KeyCorp boosted their price objective on shares of Okta from $180.00 to $190.00 and gave the company an “overweight” rating in a research report on Thursday. Jefferies Financial Group increased their target price on shares of Okta from $170.00 to $200.00 and gave the company a “buy” rating in a research note on Thursday. Finally, TD Cowen raised their target price on shares of Okta from $160.00 to $175.00 and gave the stock a “hold” rating in a report on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $168.92.
Read Our Latest Report on OKTA
Okta Price Performance
Okta (NASDAQ:OKTA – Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The company reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.96 by $0.09. The business had revenue of $805.00 million during the quarter, compared to analyst estimates of $793.00 million. Okta had a return on equity of 4.50% and a net margin of 9.63%.The company’s revenue for the quarter was up 10.6% on a year-over-year basis. During the same period last year, the company 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. As a group, equities research analysts anticipate that Okta will post 1.75 earnings per share for the current fiscal year.
Insider Transactions at Okta
In related news, CFO Brett Tighe sold 65,000 shares of the stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $117.25, for a total value of $7,621,250.00. Following the transaction, the chief financial officer owned 119,680 shares of the company’s stock, valued at $14,032,480. This represents a 35.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 2,463 shares of the firm’s stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $120.00, for a total value of $295,560.00. Following the transaction, the insider owned 25,241 shares in the company, valued at $3,028,920. The trade was a 8.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 165,347 shares of company stock worth $21,827,342 over the last three months. Company insiders own 4.61% of the company’s stock.
Hedge Funds Weigh In On Okta
A number of hedge funds and other institutional investors have recently made changes to their positions in OKTA. Eurizon Capital SGR S.p.A. purchased a new position in Okta during the 4th quarter valued at about $3,122,000. Swedbank AB lifted its position in shares of Okta by 124.3% in the 4th quarter. Swedbank AB now owns 1,819,081 shares of the company’s stock worth $157,296,000 after purchasing an additional 1,007,915 shares during the period. Diversify Wealth Management LLC purchased a new stake in shares of Okta in the 1st quarter worth approximately $2,077,000. Torque Asset Management LLC lifted its position in shares of Okta by 40.5% in the 4th quarter. Torque Asset Management LLC now owns 289,141 shares of the company’s stock worth $25,002,000 after purchasing an additional 83,337 shares during the period. Finally, Swiss National Bank boosted its stake in shares of Okta by 7.7% during the first quarter. Swiss National Bank now owns 497,300 shares of the company’s stock valued at $39,142,000 after purchasing an additional 35,700 shares in the last quarter. Institutional investors own 86.64% of the company’s stock.
Okta News Roundup
Here are the key news stories impacting Okta this week:
- Positive Sentiment: Quarterly earnings beat expectations: Okta reported adjusted earnings of $1.05 per share, ahead of the $0.96 consensus estimate, while revenue rose 10.6% year over year to $805 million, exceeding forecasts of approximately $793 million. Okta pops after topping estimates
- Positive Sentiment: Raised fiscal 2027 guidance: Management now expects full-year revenue of roughly $3.216 billion to $3.226 billion, up from its previous forecast. Third-quarter revenue guidance of $813 million to $817 million and adjusted EPS guidance of $0.92 to $0.94 also exceeded analyst estimates. Okta lifts full-year outlook
- Positive Sentiment: AI is strengthening the cybersecurity opportunity: The growth of AI agents and increasingly sophisticated AI-powered threats is driving enterprise demand for identity controls, access governance and security tools. Okta launched Agent SSO to help customers manage identities and permissions for AI agents, while new products reportedly contributed about 30% of bookings. Okta launches Agent SSO
- Positive Sentiment: Analyst sentiment improved: Several firms raised price targets following the results, including Morgan Stanley and Truist to $200, RBC to $195, and JPMorgan to $190. Wells Fargo also upgraded the stock, citing signs that Okta’s growth strategy is turning a corner. Wells Fargo upgrades Okta
- Neutral Sentiment: Investment consideration: Okta’s improved outlook and AI positioning have increased investor optimism, but the stock is trading near its 52-week high and carries elevated valuation measures, including a P/E ratio above 100. Some analysts, including Citi and Mizuho, maintained neutral ratings with $165 targets, signaling limited near-term upside at recent levels.
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.
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