Okta (NASDAQ:OKTA) Releases Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Okta (NASDAQ:OKTA) announced its earnings results on Wednesday. The company reported $0.90 EPS for the quarter, beating the consensus estimate of $0.85 by $0.05, FiscalAI reports. The business had revenue of $761.00 million for the quarter, compared to analysts’ expectations of $749.87 million. Okta had a return on equity of 3.77% and a net margin of 6.87%.

Okta Price Performance

Okta stock traded down $0.78 during midday trading on Wednesday, reaching $71.74. The company had a trading volume of 6,196,897 shares, compared to its average volume of 3,037,714. Okta has a 12-month low of $68.77 and a 12-month high of $127.57. The company has a market capitalization of $12.71 billion, a P/E ratio of 65.82, a P/E/G ratio of 2.87 and a beta of 0.79. The firm’s fifty day simple moving average is $85.73 and its 200-day simple moving average is $87.62.

Insider Activity at Okta

In other news, insider Larissa Schwartz sold 1,836 shares of the firm’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $83.47, for a total transaction of $153,250.92. Following the completion of the transaction, the insider directly owned 36,328 shares in the company, valued at $3,032,298.16. This trade represents a 4.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Eric Robert Kelleher sold 2,409 shares of the firm’s stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $84.40, for a total transaction of $203,319.60. Following the completion of the sale, the insider owned 11,266 shares in the company, valued at $950,850.40. The trade was a 17.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 37,245 shares of company stock valued at $3,385,624 in the last quarter. Corporate insiders own 5.68% of the company’s stock.

Hedge Funds Weigh In On Okta

Large investors have recently bought and sold shares of the stock. Sivia Capital Partners LLC bought a new position in Okta in the 2nd quarter valued at about $244,000. Magnetar Financial LLC acquired a new position in Okta in the third quarter valued at $206,000. Rakuten Securities Inc. boosted its stake in Okta by 194.5% during the second quarter. Rakuten Securities Inc. now owns 1,808 shares of the company’s stock worth $181,000 after acquiring an additional 1,194 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of Okta by 122.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,621 shares of the company’s stock worth $162,000 after purchasing an additional 893 shares in the last quarter. Finally, Centaurus Financial Inc. lifted its holdings in shares of Okta by 29.7% in the third quarter. Centaurus Financial Inc. now owns 1,709 shares of the company’s stock valued at $157,000 after purchasing an additional 391 shares in the last quarter. Hedge funds and other institutional investors own 86.64% of the company’s stock.

Key Stories Impacting Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Okta expanded its partnership with the PGA of America to deliver AI?powered identity security across large fan and pro workflows — a visible, real?world showcase for Okta’s AI identity use cases that could support longer?term adoption. Okta PGA Partnership Puts AI Identity Platform To A Broader Test
• Positive Sentiment: BTIG publicly kept a buy stance on OKTA, reinforcing some sell?side conviction that the company can execute and benefit from AI/security demand despite near?term noise. BTIG Sticks to Its Buy Rating for Okta (OKTA)
• Positive Sentiment: Analysts and outlets point to Okta’s AI roadmap as a future catalyst — framing identity security as a critical layer for AI deployments, which supports a constructive medium?term narrative. Okta poised for solid quarter with analysts pointing to AI as future catalyst
• Neutral Sentiment: Q4 earnings are imminent (reporting after the close March 4); analysts have trimmed/updated forecasts ahead of the call — the release itself is the primary near?term catalyst and could swing the stock either way. Okta Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
• Neutral Sentiment: Okta will present at an investor conference — useful for management access and investor Q&A but less likely to move the stock absent new guidance. Okta to Present at Upcoming Investor Conference
• Neutral Sentiment: Wells Fargo initiated coverage with an equal?weight (hold) rating and $76 target — provides liquidity/coverage but is neither a strong buy nor sell signal. Okta (NASDAQ:OKTA) Coverage Initiated by Analysts at Wells Fargo & Company
• Neutral Sentiment: Jefferies trimmed its price target to $105 but kept a buy rating — a mixed signal (lower target but continued conviction). Okta (NASDAQ:OKTA) Given New $105.00 Price Target at Jefferies Financial Group
• Negative Sentiment: Cantor Fitzgerald cut its OKTA target from $115 to $100 (though kept Overweight) — one of several target trims that can pressure the stock and investor sentiment. Cantor Fitzgerald and DA Davidson Cut Okta, Inc. (OKTA) Price Targets, Stay Bullish
• Negative Sentiment: BMO and other brokers have trimmed targets (BMO cut to $83 from $90 and kept Market Perform), adding to near?term downward pressure. BMO Capital Expects Solid Q1 Results for OKTA, Inc. (OKTA) Despite Sector Caution
• Negative Sentiment: Separate BTIG research note flagged a more pessimistic scenario in its update — another cautionary datapoint for traders ahead of earnings. BTIG Research Issues Pessimistic Forecast for Okta (NASDAQ:OKTA) Stock Price

Analyst Upgrades and Downgrades

OKTA has been the topic of several research analyst reports. Susquehanna dropped their price objective on Okta from $105.00 to $80.00 and set a “neutral” rating on the stock in a research note on Wednesday, December 3rd. Roth Mkm reiterated a “buy” rating on shares of Okta in a research note on Wednesday, December 3rd. Guggenheim restated a “buy” rating and issued a $138.00 price target on shares of Okta in a research note on Wednesday, December 3rd. Sanford C. Bernstein reissued an “outperform” rating on shares of Okta in a report on Monday, December 1st. Finally, Mizuho decreased their price objective on shares of Okta from $110.00 to $100.00 and set an “outperform” rating on the stock in a research report on Tuesday, February 17th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $107.50.

Okta announced that its Board of Directors has approved a stock repurchase plan on Monday, January 5th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the company to repurchase up to 6.8% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

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.