Okta (NASDAQ:OKTA) Trading Down 6.7% After Insider Selling

Okta, Inc. (NASDAQ:OKTA) dropped 6.7% during trading on Friday after an insider sold shares in the company. The company traded as low as $139.00 and last traded at $138.8660. 2,138,713 shares were traded during trading, a decline of 41% from the average daily volume of 3,643,611 shares. The stock had previously closed at $148.84.

Specifically, CEO Todd Mckinnon sold 68,936 shares of the stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $146.62, for a total transaction of $10,107,396.32. Following the transaction, the chief executive officer directly owned 38,484 shares in the company, valued at $5,642,524.08. This represents a 64.17% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the company. Oppenheimer raised their price objective on Okta from $110.00 to $125.00 and gave the stock an “outperform” rating in a research note on Friday, May 29th. Royal Bank Of Canada boosted their price target on shares of Okta from $108.00 to $122.00 and gave the company an “outperform” rating in a report on Friday, May 29th. DA Davidson upped their target price on shares of Okta from $110.00 to $130.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. HC Wainwright began coverage on Okta in a report on Monday, July 6th. They issued a “buy” rating for the company. Finally, Piper Sandler raised their target price on Okta from $82.00 to $105.00 and gave the company a “neutral” rating in a research report on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $118.97.

Trending Headlines about Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: KeyBanc raised its price target on Okta to $175 from $130 and kept an overweight rating, reinforcing the bullish analyst case for the stock. Benzinga report on KeyBanc price target increase
• Positive Sentiment: Another report said Okta could benefit from rising AI-driven cyber threats, which may support demand for its identity and security platform. Zacks cybersecurity stocks article
• Positive Sentiment: Brokerage and media coverage also pointed to strong institutional interest and AI-related security demand as supportive themes for Okta shares. FXEmpire article on AI agent security and Okta
• Neutral Sentiment: Recent hedge-fund and institutional filings show mixed positioning, with several large investors adding to Okta while others reduced exposure, suggesting uneven but still meaningful institutional interest.
• Negative Sentiment: CEO Todd McKinnon sold 68,936 shares worth about $10.1 million, trimming his stake significantly, which can weigh on sentiment even though the trade was pre-planned. SEC Form 4 filing

Okta Price Performance

The firm has a market capitalization of $24.10 billion, a P/E ratio of 100.46, a PEG ratio of 4.99 and a beta of 0.77. The firm’s fifty day moving average price is $111.25 and its 200-day moving average price is $92.00.

Okta (NASDAQ:OKTA) last released its earnings results on Thursday, May 28th. The company reported $0.91 earnings per share for the quarter, topping analysts’ consensus estimates of $0.85 by $0.06. The firm had revenue of $765.00 million during the quarter, compared to the consensus estimate of $751.84 million. Okta had a return on equity of 4.15% and a net margin of 8.24%.The firm’s revenue for the quarter was up 11.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.86 earnings per share. Okta has set its FY 2027 guidance at 3.790-3.870 EPS and its Q2 2027 guidance at 0.950-0.970 EPS. Analysts expect that Okta, Inc. will post 1.75 earnings per share for the current year.

Institutional Trading of Okta

Several institutional investors have recently modified their holdings of the company. Elevation Wealth Partners LLC raised its position in Okta by 825.0% in the fourth quarter. Elevation Wealth Partners LLC now owns 296 shares of the company’s stock worth $26,000 after acquiring an additional 264 shares in the last quarter. MassMutual Private Wealth & Trust FSB lifted its holdings in Okta by 279.5% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 296 shares of the company’s stock valued at $40,000 after acquiring an additional 218 shares during the last quarter. SHP Wealth Management bought a new position in shares of Okta during the 4th quarter valued at about $27,000. Torren Management LLC acquired a new position in shares of Okta in the 4th quarter worth approximately $32,000. Finally, Spire Wealth Management grew its stake in shares of Okta by 30.8% in the 4th quarter. Spire Wealth Management now owns 505 shares of the company’s stock worth $44,000 after purchasing an additional 119 shares during the last quarter. Institutional investors and hedge funds own 86.64% of the company’s stock.

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.