Okta (NASDAQ:OKTA) Raised to “Buy” at Wall Street Zen

Okta (NASDAQ:OKTA) was upgraded by equities researchers at Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued on Saturday.

Several other brokerages have also recently commented on OKTA. Truist Financial reaffirmed a “buy” rating and issued a $200.00 target price (up from $165.00) on shares of Okta in a research report on Thursday. KeyCorp increased their price objective on shares of Okta from $180.00 to $190.00 and gave the company an “overweight” rating in a research note on Thursday. Oppenheimer raised their price objective on shares of Okta from $170.00 to $190.00 and gave the stock an “outperform” rating in a report on Thursday. BMO Capital Markets lifted their target price on shares of Okta from $168.00 to $187.00 and gave the company an “outperform” rating in a research report on Thursday. Finally, Royal Bank Of Canada upped their target price on shares of Okta from $166.00 to $195.00 and gave the company an “outperform” rating in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and ten have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $172.92.

Okta Stock Performance

NASDAQ OKTA opened at $166.23 on Friday. Okta has a twelve month low of $62.66 and a twelve month high of $174.85. The stock has a market cap of $28.89 billion, a PE ratio of 100.14, a PEG ratio of 5.76 and a beta of 0.77. The firm has a 50-day simple moving average of $141.34 and a 200 day simple moving average of $105.65.

Okta (NASDAQ:OKTA) last posted its quarterly earnings results on Wednesday, August 26th. The company reported $1.05 EPS for the quarter, beating the consensus estimate of $0.96 by $0.09. Okta had a return on equity of 4.50% and a net margin of 9.63%.The firm had revenue of $805.00 million during the quarter, compared to analysts’ expectations of $793.00 million. During the same quarter in the prior year, the firm posted $0.91 EPS. The company’s revenue for the quarter was up 10.6% on a year-over-year basis. Okta has set its FY 2027 guidance at 3.900-3.940 EPS and its Q3 2027 guidance at 0.920-0.940 EPS. Research analysts forecast that Okta will post 1.77 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Larissa Schwartz sold 24,971 shares of the business’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $134.13, for a total value of $3,349,360.23. Following the sale, the insider owned 23,477 shares in the company, valued at approximately $3,148,970.01. The trade was a 51.54% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Todd Mckinnon sold 68,936 shares of the company’s stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $146.62, for a total transaction of $10,107,396.32. Following the completion of the sale, the chief executive officer directly owned 38,484 shares in the company, valued at approximately $5,642,524.08. The trade was a 64.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 165,347 shares of company stock valued at $21,827,342 in the last ninety days. Insiders own 4.61% of the company’s stock.

Institutional Trading of Okta

Large investors have recently added to or reduced their stakes in the company. Eurizon Capital SGR S.p.A. bought a new position in Okta during the 4th quarter worth approximately $3,122,000. Swedbank AB lifted its position in shares of Okta by 124.3% in the fourth quarter. Swedbank AB now owns 1,819,081 shares of the company’s stock worth $157,296,000 after purchasing an additional 1,007,915 shares in the last quarter. Diversify Wealth Management LLC acquired a new stake in Okta in the 1st quarter valued at $2,077,000. Torque Asset Management LLC increased its position in shares of Okta by 40.5% in the fourth quarter. Torque Asset Management LLC now owns 289,141 shares of the company’s stock valued at $25,002,000 after acquiring an additional 83,337 shares during the last quarter. Finally, Swiss National Bank increased its position in shares of Okta by 7.7% during the 1st quarter. Swiss National Bank now owns 497,300 shares of the company’s stock worth $39,142,000 after purchasing an additional 35,700 shares during the last quarter. 86.64% of the stock is owned by institutional investors.

Key Headlines Impacting Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Quarterly beat and raised outlook: Okta reported adjusted earnings of $1.05 per share versus the $0.96 consensus, while revenue increased 10.6% year over year to $805 million, ahead of the roughly $793 million estimate. Subscription revenue rose 12%, and management raised its fiscal 2027 revenue outlook to approximately $3.216 billion-$3.226 billion, or 10%-11% growth. OKTA Q2 Earnings Beat on Subscription Growth, FY27 View Raised
• Positive Sentiment: AI is expanding the identity-security market: Analysts and company executives highlighted rising demand to secure AI agents and other nonhuman identities. Okta’s new Agent SSO product is designed to provide access controls, visibility and policy management for enterprise AI agents, potentially creating a new growth avenue as AI adoption accelerates. Okta Launches Agent SSO For Enterprise AI Access
• Positive Sentiment: Wall Street became more constructive: JPMorgan, Morgan Stanley, RBC, Oppenheimer, Truist, Needham and other firms raised price targets, with several targeting $190-$200 and maintaining buy or overweight ratings. Wells Fargo also upgraded the stock, citing signs that Okta’s growth strategy is improving. Okta Posts Q2 Beat, Analysts Raise Price Targets
• Neutral Sentiment: Technical momentum is strong: OKTA moved above its 20-day and 50-day moving averages and reached a multiyear high. This supports a bullish trading trend but also leaves the stock more exposed to profit-taking after its rapid advance. Okta Recently Broke Out Above the 20-Day Moving Average
• Negative Sentiment: Valuation and execution risks remain: With the stock near its 52-week high and trading at an elevated earnings multiple, the market is pricing in substantial future growth. Some analysts remain neutral, and commentary notes that AI security is still an early-stage opportunity rather than a major current revenue driver. Okta’s Buy Thesis Holds, But the Margin for Error Is Smaller
• Negative Sentiment: AI also creates new threats: The rapid growth of AI-generated identities and agents could increase demand for Okta’s products, but it also introduces additional attack surfaces and security-complexity concerns that the company must successfully address. Okta’s AI Boom Just Created a New Security Problem

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.