Scotiabank Has Lowered Expectations for Okta (NASDAQ:OKTA) Stock Price

Okta (NASDAQ:OKTA) had its price objective dropped by analysts at Scotiabank from $85.00 to $80.00 in a report released on Thursday,Benzinga reports. The firm currently has a “sector perform” rating on the stock. Scotiabank’s price target points to a potential downside of 0.89% from the stock’s previous close. Scotiabank also issued estimates for Okta’s FY2027 earnings at $1.59 EPS.

OKTA has been the topic of a number of other research reports. Stephens lowered their price objective on shares of Okta from $120.00 to $95.00 and set an “overweight” rating on the stock in a research report on Thursday. Berenberg Bank cut their target price on shares of Okta from $145.00 to $120.00 and set a “buy” rating for the company in a research report on Thursday. Royal Bank Of Canada boosted their target price on shares of Okta from $97.00 to $108.00 and gave the company an “outperform” rating in a research note on Monday, January 5th. BMO Capital Markets dropped their price target on Okta from $90.00 to $83.00 and set a “market perform” rating on the stock in a research note on Thursday, February 26th. Finally, Zacks Research raised Okta from a “hold” rating to a “strong-buy” rating in a report on Wednesday, February 25th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $103.25.

Okta Stock Performance

Shares of NASDAQ:OKTA opened at $80.72 on Thursday. Okta has a fifty-two week low of $68.77 and a fifty-two week high of $127.57. The business has a 50-day simple moving average of $85.06 and a two-hundred day simple moving average of $87.38. The firm has a market cap of $14.31 billion, a price-to-earnings ratio of 61.62, a price-to-earnings-growth ratio of 3.08 and a beta of 0.79.

Okta (NASDAQ:OKTA) last posted its earnings results on Wednesday, March 4th. The company reported $0.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.85 by $0.05. The business had revenue of $761.00 million for the quarter, compared to analysts’ expectations of $749.87 million. Okta had a net margin of 8.05% and a return on equity of 4.18%. The business’s revenue for the quarter was up 11.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.78 EPS. Okta has set its FY 2027 guidance at 3.740-3.820 EPS and its Q1 2027 guidance at 0.840-0.860 EPS. As a group, research analysts predict that Okta will post 0.42 earnings per share for the current year.

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

Insider Buying and Selling at Okta

In other news, insider Larissa Schwartz sold 1,836 shares of the business’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $83.47, for a total transaction of $153,250.92. Following the completion of the sale, the insider owned 36,328 shares of the company’s stock, valued at $3,032,298.16. The trade was a 4.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, 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 value of $1,026,574.56. The SEC filing for this sale provides additional information. Insiders sold a total of 35,927 shares of company stock valued at $3,272,658 in the last ninety days. Corporate insiders own 5.68% of the company’s stock.

Hedge Funds Weigh In On Okta

Several institutional investors and hedge funds have recently bought and sold shares of OKTA. Vanguard Group Inc. grew its holdings in Okta by 5.7% during the third quarter. Vanguard Group Inc. now owns 19,803,227 shares of the company’s stock valued at $1,815,956,000 after purchasing an additional 1,074,977 shares during the period. First Trust Advisors LP increased its position in Okta by 28.2% in the fourth quarter. First Trust Advisors LP now owns 6,030,090 shares of the company’s stock worth $521,422,000 after buying an additional 1,326,051 shares in the last quarter. Massachusetts Financial Services Co. MA raised its stake in shares of Okta by 4.0% in the third quarter. Massachusetts Financial Services Co. MA now owns 4,635,572 shares of the company’s stock worth $425,082,000 after buying an additional 179,919 shares during the period. Geode Capital Management LLC raised its stake in shares of Okta by 1.8% in the fourth quarter. Geode Capital Management LLC now owns 3,261,303 shares of the company’s stock worth $281,246,000 after buying an additional 57,605 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Okta by 2.9% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,495,389 shares of the company’s stock valued at $215,776,000 after buying an additional 69,653 shares in the last quarter. 86.64% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Q4 results beat and signs of enterprise traction — Okta reported stronger-than-expected Q4 revenue and EPS (revenue ~$761M, EPS $0.90) with cRPO/contract metrics up, which underpins the near-term rally. Okta Earnings Beat, But Growth Questions Remain
• Positive Sentiment: AI‑agent product traction — Management said AI‑related products (e.g., Auth0 for AI Agents / Okta for AI Agents) contributed meaningfully to Q4 bookings and the company exceeded $3B in ACV, giving a credible growth narrative tied to securing non‑human identities. Okta Ties AI Security Push To Larger Contracts And Equity Plans
• Positive Sentiment: Analyst upgrades and bullish notes — Multiple brokers reiterated or upgraded coverage after the print (BMO upgraded to Outperform with a $97 PT; JPMorgan raised its PT slightly; Jefferies/DA Davidson remain constructive), which supports near‑term upside. BMO Capital Upgrades Okta to Outperform
• Neutral Sentiment: Mixed analyst positioning — while some firms kept or raised price targets, many others trimmed targets on a mix of valuation and near‑term growth concerns; consensus views show upside but with varied conviction. Okta To Rally Around 22%? Here Are 10 Top Analyst Forecasts For Friday
• Neutral Sentiment: Equity plan / shelf filing announced — Okta filed a $763M shelf tied to an ESOP equity offering; routine for employee programs but worth noting for potential future supply. Okta Ties AI Security Push To Larger Contracts And Equity Plans
• Negative Sentiment: Cautious FY‑2027 guidance and Q1 outlook — management’s FY‑27 and Q1 guidance implied a near‑term revenue deceleration (Q1 revenue guide slightly below Street estimates), which tempers the rally and keeps longer‑term growth questions alive. Okta’s Q4 results surpass estimates, but guidance appears mixed
• Negative Sentiment: Competition and execution questions on the AI agent opportunity — analysts warn that the AI‑agent TAM is attractive but unproven; large cloud players and security vendors are building competing solutions, making monetization and sustained re‑acceleration uncertain. Okta: Bigger Deals And Renewed Growth, Thanks To Agentic AI
• Negative Sentiment: Analyst price‑target cuts — several brokers trimmed targets post‑earnings despite positive notes, signaling caution on valuation and the company’s ability to reaccelerate growth. Benzinga Coverage of Price Target Changes

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.