Okta (NASDAQ:OKTA) Stock Rating Lowered by Wall Street Zen

Okta (NASDAQ:OKTA) was downgraded by research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday.

A number of other brokerages have also recently commented on OKTA. Susquehanna dropped their price target on Okta from $105.00 to $80.00 and set a “neutral” rating on the stock in a research report on Wednesday, December 3rd. Needham & Company LLC restated a “buy” rating and issued a $110.00 price objective on shares of Okta in a research note on Friday, December 12th. DA Davidson reaffirmed a “buy” rating and set a $140.00 price objective on shares of Okta in a report on Wednesday, December 3rd. BMO Capital Markets reduced their target price on shares of Okta from $112.00 to $90.00 and set a “market perform” rating for the company in a research note on Wednesday, December 3rd. Finally, UBS Group reissued a “buy” rating on shares of Okta in a research report on Thursday, December 4th. Twenty-five investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Okta has an average rating of “Moderate Buy” and an average price target of $113.88.

Okta Stock Performance

Shares of OKTA stock opened at $86.74 on Friday. The firm has a market cap of $15.37 billion, a price-to-earnings ratio of 79.58, a P/E/G ratio of 3.46 and a beta of 0.77. Okta has a 52 week low of $75.05 and a 52 week high of $127.57. The firm’s 50-day simple moving average is $88.54 and its two-hundred day simple moving average is $89.46.

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

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

Insider Activity

In other Okta news, CFO Brett Tighe sold 10,000 shares of the firm’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $95.07, for a total value of $950,700.00. Following the completion of the transaction, the chief financial officer directly owned 134,385 shares of the company’s stock, valued at $12,775,981.95. This trade represents a 6.93% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Todd Mckinnon sold 11,286 shares of the company’s stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $90.96, for a total transaction of $1,026,574.56. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 36,727 shares of company stock valued at $3,344,746. 5.68% of the stock is owned by company insiders.

Institutional Trading of Okta

Several institutional investors and hedge funds have recently modified their holdings of OKTA. Promus Capital LLC purchased a new position in shares of Okta during the second quarter worth about $27,000. Root Financial Partners LLC bought a new stake in Okta during the third quarter valued at approximately $26,000. Elevation Wealth Partners LLC grew its stake in Okta by 825.0% in the 4th quarter. Elevation Wealth Partners LLC now owns 296 shares of the company’s stock worth $26,000 after buying an additional 264 shares in the last quarter. Cullen Frost Bankers Inc. grew its stake in Okta by 88.3% in the 2nd quarter. Cullen Frost Bankers Inc. now owns 339 shares of the company’s stock worth $34,000 after buying an additional 159 shares in the last quarter. Finally, Kiker Wealth Management LLC grew its stake in Okta by 1,159.3% in the 2nd quarter. Kiker Wealth Management LLC now owns 340 shares of the company’s stock worth $34,000 after buying an additional 313 shares in the last quarter. Hedge funds and other institutional investors own 86.64% of the company’s stock.

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.