Okta (NASDAQ:OKTA) Upgraded by Wall Street Zen to Buy Rating

Wall Street Zen upgraded shares of Okta (NASDAQ:OKTA) from a hold rating to a buy rating in a research report report published on Saturday.

Several other equities analysts have also commented on the stock. Raymond James Financial upped their price target on shares of Okta from $115.00 to $185.00 and gave the stock an “outperform” rating in a research report on Thursday. Citizens Jmp lifted their price target on Okta from $170.00 to $180.00 and gave the company a “market outperform” rating in a report on Thursday. BMO Capital Markets boosted their price objective on Okta from $168.00 to $187.00 and gave the stock an “outperform” rating in a research report on Thursday. Bank of America raised Okta from an “underperform” rating to a “neutral” rating and increased their price objective for the stock from $75.00 to $170.00 in a report on Thursday. Finally, JPMorgan Chase & Co. increased their target price on shares of Okta from $165.00 to $190.00 and gave the company an “overweight” rating in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat.com, Okta has a consensus rating of “Moderate Buy” and a consensus target price of $172.92.

Okta Stock Down 3.9%

OKTA opened at $166.23 on Friday. The firm has a market cap of $28.89 billion, a price-to-earnings ratio of 100.14, a price-to-earnings-growth ratio of 5.94 and a beta of 0.77. Okta has a fifty-two week low of $62.66 and a fifty-two week high of $174.85. The company’s 50-day moving average price is $141.34 and its 200 day moving average price is $105.53.

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, topping the consensus estimate of $0.96 by $0.09. The business had revenue of $805.00 million for the quarter, compared to the consensus estimate of $793.00 million. Okta had a return on equity of 4.50% and a net margin of 9.63%.The business’s revenue was up 10.6% on a year-over-year basis. During the same quarter last year, the business posted $0.91 EPS. 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 anticipate that Okta will post 1.77 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Eric Robert Kelleher sold 3,977 shares of the stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $114.10, for a total value of $453,775.70. Following the completion of the sale, the insider owned 19,618 shares in the company, valued at $2,238,413.80. This represents a 16.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brett Tighe sold 65,000 shares of the stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $117.25, for a total value of $7,621,250.00. Following the completion of the sale, the chief financial officer directly owned 119,680 shares of the company’s stock, valued at approximately $14,032,480. This represents a 35.20% decrease in their ownership of the stock. 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 have sold a total of 165,347 shares of company stock worth $21,827,342 in the last quarter. 4.61% of the stock is currently owned by corporate insiders.

Institutional Trading of Okta

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

More Okta News

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.