Okta (NASDAQ:OKTA) Downgraded by Wall Street Zen to “Hold”

Wall Street Zen cut shares of Okta (NASDAQ:OKTA) from a buy rating to a hold rating in a research report report published on Saturday morning.

A number of other research analysts also recently issued reports on OKTA. Piper Sandler lifted their price target on shares of Okta from $95.00 to $100.00 and gave the stock a “neutral” rating in a research note on Monday, January 5th. Royal Bank Of Canada upped their price objective on Okta from $97.00 to $108.00 and gave the stock an “outperform” rating in a report on Monday, January 5th. BTIG Research dropped their price target on Okta from $142.00 to $116.00 and set a “buy” rating for the company in a research report on Wednesday, December 3rd. KeyCorp reiterated an “overweight” rating and set a $140.00 price objective on shares of Okta in a research report on Monday, December 1st. Finally, BMO Capital Markets lowered their price target on Okta from $112.00 to $90.00 and set a “market perform” rating for the company in a report on Wednesday, December 3rd. Twenty-five investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $113.88.

Okta Price Performance

Shares of NASDAQ OKTA opened at $86.74 on Friday. The company has a 50 day simple moving average of $88.54 and a 200-day simple moving average of $89.50. The company has a market capitalization of $15.37 billion, a P/E ratio of 79.58, a P/E/G ratio of 3.46 and a beta of 0.77. Okta has a 1 year low of $75.05 and a 1 year high of $127.57.

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

Okta announced that its board has authorized a share repurchase program on Monday, January 5th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the company to buy up to 6.8% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s management believes its shares are undervalued.

Insider Activity at Okta

In other Okta news, CEO Todd Mckinnon sold 11,286 shares of Okta stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $90.96, for a total value of $1,026,574.56. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Brett Tighe sold 10,000 shares of the business’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $95.07, for a total transaction of $950,700.00. Following the transaction, the chief financial officer directly owned 134,385 shares of the company’s stock, valued at approximately $12,775,981.95. This trade represents a 6.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 36,727 shares of company stock worth $3,344,746. 5.68% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Okta

A number of hedge funds and other institutional investors have recently modified their holdings of OKTA. Integrated Wealth Concepts LLC acquired a new position in shares of Okta during the 1st quarter valued at $225,000. NewEdge Advisors LLC raised its holdings in shares of Okta by 853.4% during the first quarter. NewEdge Advisors LLC now owns 5,530 shares of the company’s stock valued at $582,000 after acquiring an additional 4,950 shares during the period. Sivia Capital Partners LLC purchased a new stake in shares of Okta in the second quarter valued at $244,000. QRG Capital Management Inc. boosted its position in Okta by 84.5% during the 2nd quarter. QRG Capital Management Inc. now owns 3,724 shares of the company’s stock worth $372,000 after acquiring an additional 1,706 shares during the period. Finally, Prime Capital Investment Advisors LLC acquired a new stake in shares of Okta during the second quarter worth approximately $308,000. 86.64% of the stock is currently 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.