Okta (NASDAQ:OKTA) Shares Down 5.4% – Should You Sell?

Okta, Inc. (NASDAQ:OKTA) traded down 5.4% on Tuesday . The company traded as low as $165.21 and last traded at $163.7510. 816,696 shares traded hands during mid-day trading, a decline of 77% from the average daily volume of 3,557,050 shares. The stock had previously closed at $173.04.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on OKTA. Citizens Jmp lifted their target price on Okta from $170.00 to $180.00 and gave the stock a “market outperform” rating in a report on Thursday, August 27th. UBS Group upped their price target on Okta from $150.00 to $200.00 and gave the company a “buy” rating in a research report on Thursday, August 27th. Arete Research set a $127.00 price objective on Okta and gave the stock a “buy” rating in a research note on Tuesday, May 26th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Okta in a research note on Monday. Finally, Capital One Financial set a $171.00 price target on shares of Okta and gave the stock an “overweight” rating in a research report on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and ten have given a Hold rating to the company’s stock. According to data from MarketBeat, Okta currently has a consensus rating of “Moderate Buy” and an average price target of $172.92.

Okta Trading Down 2.0%

The firm has a 50-day simple moving average of $144.34 and a two-hundred day simple moving average of $107.35. The company has a market capitalization of $28.36 billion, a price-to-earnings ratio of 98.28, a price-to-earnings-growth ratio of 5.23 and a beta of 0.79.

Okta (NASDAQ:OKTA) last announced its quarterly earnings results on Wednesday, August 26th. The company reported $1.05 earnings per share (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 business had revenue of $805.00 million during the quarter, compared to analyst estimates of $793.00 million. During the same period in the previous year, the company earned $0.91 EPS. The firm’s revenue 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. On average, sell-side analysts forecast that Okta, Inc. will post 1.9 earnings per share for the current year.

Insider Buying and Selling at Okta

In other Okta news, CEO Todd Mckinnon sold 68,936 shares of the firm’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 transaction, the chief executive officer directly owned 38,484 shares in the company, valued at $5,642,524.08. This trade represents a 64.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 2,463 shares of the company’s stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $120.00, for a total value of $295,560.00. Following the sale, the insider owned 25,241 shares of the company’s stock, valued at approximately $3,028,920. This trade represents a 8.89% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 140,376 shares of company stock valued at $18,477,982. 4.61% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Okta

Several hedge funds and other institutional investors have recently added to or reduced their stakes in OKTA. California State Teachers Retirement System boosted its holdings in shares of Okta by 13,755.2% during the 2nd quarter. California State Teachers Retirement System now owns 36,276,597 shares of the company’s stock worth $4,949,942,000 after buying an additional 36,014,770 shares during the period. First Trust Advisors LP increased its stake in shares of 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 purchasing an additional 1,326,051 shares during the period. Allspring Global Investments Holdings LLC lifted its position in shares of Okta by 71.9% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 3,553,091 shares of the company’s stock worth $281,209,000 after purchasing an additional 1,485,963 shares during the last quarter. Geode Capital Management LLC boosted its stake in Okta by 1.8% during the 4th quarter. Geode Capital Management LLC now owns 3,261,303 shares of the company’s stock valued at $281,246,000 after purchasing an additional 57,605 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in 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 purchasing an additional 69,653 shares during the period. Institutional investors and hedge funds 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.