Okta (NASDAQ:OKTA) Downgraded to “Neutral” Rating by Mizuho

Okta (NASDAQ:OKTA) was downgraded by research analysts at Mizuho from an “outperform” rating to a “neutral” rating in a research report issued on Tuesday. They currently have a $125.00 price objective on the stock. Mizuho’s price objective would suggest a potential downside of 10.58% from the stock’s current price.

Other analysts have also issued reports about the stock. Susquehanna increased their price target on shares of Okta from $80.00 to $110.00 and gave the company a “neutral” rating in a research report on Friday. JPMorgan Chase & Co. increased their price target on shares of Okta from $103.00 to $114.00 and gave the company an “overweight” rating in a research report on Thursday, May 28th. Wells Fargo & Company increased their price target on shares of Okta from $85.00 to $100.00 and gave the company an “equal weight” rating in a research report on Friday. Stephens decreased their price target on shares of Okta from $120.00 to $95.00 and set an “overweight” rating for the company in a research report on Thursday, March 5th. Finally, Berenberg Bank increased their price target on shares of Okta from $120.00 to $135.00 and gave the company a “buy” rating in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $112.29.

Okta Price Performance

NASDAQ:OKTA opened at $139.79 on Tuesday. Okta has a 1-year low of $62.66 and a 1-year high of $142.35. The company has a 50-day moving average of $81.09 and a 200 day moving average of $83.33. The firm has a market cap of $24.73 billion, a PE ratio of 101.30, a price-to-earnings-growth ratio of 4.78 and a beta of 0.59.

Okta (NASDAQ:OKTA) last released its quarterly earnings data 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. Okta had a net margin of 8.24% and a return on equity of 4.15%. The company had revenue of $765.00 million during the quarter, compared to analyst estimates of $751.84 million. During the same period in the prior year, the firm earned $0.86 earnings per share. The firm’s revenue for the quarter was up 11.2% compared to the same quarter last year. Okta has set its FY 2027 guidance at 3.790-3.870 EPS and its Q2 2027 guidance at 0.950-0.970 EPS. Sell-side analysts anticipate that Okta will post 1.61 EPS for the current fiscal year.

Insider Activity

In related news, insider Eric Robert Kelleher sold 16,818 shares of the stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of $80.00, for a total value of $1,345,440.00. Following the transaction, the insider owned 15,470 shares in the company, valued at approximately $1,237,600. This represents a 52.09% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CRO Jonathan James Addison sold 23,304 shares of the stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $77.79, for a total transaction of $1,812,818.16. Following the completion of the transaction, the executive owned 4,364 shares in the company, valued at approximately $339,475.56. This trade represents a 84.23% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 70,884 shares of company stock valued at $5,625,648. 4.61% of the stock is owned by company insiders.

Hedge Funds Weigh In On Okta

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Glenmede Trust Co. NA increased its holdings in Okta by 7.0% in the 1st quarter. Glenmede Trust Co. NA now owns 540,947 shares of the company’s stock worth $42,578,000 after buying an additional 35,324 shares during the period. Bank of America Corp DE increased its holdings in Okta by 0.4% in the 1st quarter. Bank of America Corp DE now owns 1,496,896 shares of the company’s stock worth $117,821,000 after buying an additional 6,533 shares during the period. Arkadios Wealth Advisors increased its holdings in Okta by 133.4% in the 1st quarter. Arkadios Wealth Advisors now owns 12,295 shares of the company’s stock worth $968,000 after buying an additional 7,028 shares during the period. South Dakota Investment Council increased its holdings in Okta by 11.1% in the 1st quarter. South Dakota Investment Council now owns 47,783 shares of the company’s stock worth $3,761,000 after buying an additional 4,777 shares during the period. Finally, IFS Group LLC acquired a new position in Okta in the 1st quarter worth approximately $375,000. Institutional investors and hedge funds own 86.64% of the company’s stock.

Key Stories Impacting Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Okta’s recent earnings beat and raised outlook continue to support the stock, with bullish writeups saying the company’s AI security strategy and identity platform remain intact and could drive further upside. Okta Stock Gains On Earnings, But The Bull Case Is Still Intact
• Positive Sentiment: Coverage highlighted Okta as one of the top large-cap gainers last week, citing strong earnings, higher guidance, and AI-related tailwinds as the main drivers behind the move. Dell, Snowflake, And Okta Are Among Top 10 Large-Cap Gainers Last Week
• Positive Sentiment: Analyst- and investor-focused articles suggest Okta is drawing renewed attention, which can reinforce momentum after the company’s strong quarterly results. Okta, Inc. (OKTA) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Commentary from Okta’s COO about companies needing to redesign work for AI agents adds to the broader AI narrative, but it is more strategic color than a direct financial catalyst. Okta’s COO says companies are in denial about the hardest part of the AI revolution
• Neutral Sentiment: Jim Cramer’s mention of Okta and general market chatter have kept the stock in the spotlight, but the article does not appear to add new fundamental information. Jim Cramer Shares Key Detail About Okta (OKTA)
• Neutral Sentiment: Additional headline mentions and “hyped stock” coverage point to the stock trading near highs, but do not provide a fresh catalyst by themselves. 3 Hyped Up Stocks with Questionable Fundamentals
• Negative Sentiment: Broader cybersecurity news, including Palo Alto Networks’ earnings and AI security positioning, could increase competition for investor attention in the sector. Palo Alto Reports Earnings as It Prepares for AI Security

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.