Okta (NASDAQ:OKTA – Free Report) had its price target raised by Royal Bank Of Canada from $166.00 to $195.00 in a report released on Thursday, MarketBeat reports. Royal Bank Of Canada currently has an outperform rating on the stock.
Several other research firms also recently commented on OKTA. Canaccord Genuity Group raised their price objective on Okta from $115.00 to $175.00 and gave the stock a “buy” rating in a report on Thursday. Barclays upped their target price on Okta from $120.00 to $170.00 and gave the stock an “overweight” rating in a report on Monday, August 17th. Bank of America raised Okta from an “underperform” rating to a “neutral” rating and increased their price target for the stock from $75.00 to $170.00 in a research report on Thursday. Piper Sandler raised their price target on Okta from $105.00 to $160.00 and gave the company a “neutral” rating in a research note on Thursday. Finally, Capital One Financial set a $171.00 price objective on Okta and gave the company an “overweight” rating in a report on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and ten have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $172.92.
Check Out Our Latest Analysis on Okta
Okta Price Performance
Okta (NASDAQ:OKTA – Get Free Report) last issued its earnings results on Wednesday, August 26th. The company reported $1.05 EPS for the quarter, topping analysts’ consensus estimates of $0.96 by $0.09. Okta had a net margin of 9.63% and a return on equity of 4.50%. The business had revenue of $805.00 million for the quarter, compared to analyst estimates of $793.00 million. During the same period last year, the company posted $0.91 earnings per share. The company’s quarterly revenue was up 10.6% compared to the same quarter last year. 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 expect that Okta will post 1.77 EPS for the current fiscal year.
Insider Buying and Selling
In other news, CFO Brett Tighe sold 65,000 shares of Okta stock in a transaction 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 directly owned 119,680 shares in the company, valued at approximately $14,032,480. This trade represents a 35.20% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric Robert Kelleher sold 3,977 shares of the business’s stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $114.10, for a total value of $453,775.70. Following the completion of the transaction, the insider directly owned 19,618 shares of the company’s stock, valued at approximately $2,238,413.80. The trade was a 16.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 165,347 shares of company stock worth $21,827,342 in the last three months. Corporate insiders own 4.61% of the company’s stock.
Hedge Funds Weigh In On Okta
Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Eurizon Capital SGR S.p.A. purchased a new position in Okta in the fourth quarter worth $3,122,000. Swedbank AB lifted its holdings in shares of Okta by 124.3% during the 4th quarter. Swedbank AB now owns 1,819,081 shares of the company’s stock valued at $157,296,000 after purchasing an additional 1,007,915 shares during the last quarter. Diversify Wealth Management LLC acquired a new stake in shares of Okta in the 1st quarter worth $2,077,000. Torque Asset Management LLC boosted 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 in the last quarter. Finally, Swiss National Bank grew its stake in Okta by 7.7% during the 1st quarter. Swiss National Bank now owns 497,300 shares of the company’s stock worth $39,142,000 after buying an additional 35,700 shares during the last quarter. Hedge funds and other institutional investors own 86.64% of the company’s stock.
Key Headlines Impacting Okta
Here are the key news stories impacting Okta this week:
- Positive Sentiment: Quarterly beat and raised outlook: Okta reported adjusted earnings of $1.05 per share versus the $0.96 consensus, while revenue increased 10.6% year over year to $805 million, ahead of the roughly $793 million estimate. Subscription revenue rose 12%, and management raised its fiscal 2027 revenue outlook to approximately $3.216 billion-$3.226 billion, or 10%-11% growth. OKTA Q2 Earnings Beat on Subscription Growth, FY27 View Raised
- Positive Sentiment: AI is expanding the identity-security market: Analysts and company executives highlighted rising demand to secure AI agents and other nonhuman identities. Okta’s new Agent SSO product is designed to provide access controls, visibility and policy management for enterprise AI agents, potentially creating a new growth avenue as AI adoption accelerates. Okta Launches Agent SSO For Enterprise AI Access
- Positive Sentiment: Wall Street became more constructive: JPMorgan, Morgan Stanley, RBC, Oppenheimer, Truist, Needham and other firms raised price targets, with several targeting $190-$200 and maintaining buy or overweight ratings. Wells Fargo also upgraded the stock, citing signs that Okta’s growth strategy is improving. Okta Posts Q2 Beat, Analysts Raise Price Targets
- Neutral Sentiment: Technical momentum is strong: OKTA moved above its 20-day and 50-day moving averages and reached a multiyear high. This supports a bullish trading trend but also leaves the stock more exposed to profit-taking after its rapid advance. Okta Recently Broke Out Above the 20-Day Moving Average
- Negative Sentiment: Valuation and execution risks remain: With the stock near its 52-week high and trading at an elevated earnings multiple, the market is pricing in substantial future growth. Some analysts remain neutral, and commentary notes that AI security is still an early-stage opportunity rather than a major current revenue driver. Okta’s Buy Thesis Holds, But the Margin for Error Is Smaller
- Negative Sentiment: AI also creates new threats: The rapid growth of AI-generated identities and agents could increase demand for Okta’s products, but it also introduces additional attack surfaces and security-complexity concerns that the company must successfully address. Okta’s AI Boom Just Created a New Security Problem
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.
Featured Stories
- Five stocks we like better than Okta
- From SaaS-pocalypse to Perfect Storm: Workday’s AI Growth Story Strengthens
- These 3 GARP Stocks Show Why Growth and Value Do Not Have to Clash
- Venture Into High-Volatility Corners of the Market With These 3 ETFs
- 3 Retail Stocks to Watch After a Big Consumer Earnings Week
Receive News & Ratings for Okta Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Okta and related companies with MarketBeat.com's FREE daily email newsletter.
