Okta (NASDAQ:OKTA) Shares Down 5.7% – Should You Sell?

Shares of Okta, Inc. (NASDAQ:OKTA) dropped 5.7% on Tuesday . The stock traded as low as $141.24 and last traded at $139.91. Approximately 771,127 shares were traded during trading, a decline of 79% from the average daily volume of 3,601,210 shares. The stock had previously closed at $148.41.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. BTIG Research raised their price objective on shares of Okta from $119.00 to $136.00 and gave the stock a “buy” rating in a research report on Thursday, June 25th. Needham & Company LLC increased their price target on shares of Okta from $120.00 to $140.00 and gave the company a “buy” rating in a research note on Wednesday, June 24th. Royal Bank Of Canada raised their price target on shares of Okta from $108.00 to $122.00 and gave the stock an “outperform” rating in a report on Friday, May 29th. Citigroup reaffirmed an “outperform” rating on shares of Okta in a research report on Friday, May 29th. Finally, Jefferies Financial Group upgraded Okta from a “buy” rating to a “buy” rating in a research report on Monday, July 6th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $121.81.

Okta Trading Down 5.5%

The firm’s fifty day moving average price is $119.55 and its 200 day moving average price is $94.54. The stock has a market capitalization of $24.37 billion, a price-to-earnings ratio of 101.69, a price-to-earnings-growth ratio of 5.37 and a beta of 0.77.

Okta (NASDAQ:OKTA) last posted its earnings results on Thursday, May 28th. The company reported $0.91 earnings per share for the quarter, beating the consensus estimate 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 net margin of 8.24% and a return on equity of 4.15%. The firm’s revenue for the quarter was up 11.2% on a year-over-year basis. During the same quarter last year, the firm earned $0.86 EPS. Okta has set its FY 2027 guidance at 3.790-3.870 EPS and its Q2 2027 guidance at 0.950-0.970 EPS. On average, analysts forecast that Okta, Inc. will post 1.75 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Larissa Schwartz sold 24,971 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $134.13, for a total transaction of $3,349,360.23. Following the completion of the transaction, the insider directly owned 23,477 shares in the company, valued at $3,148,970.01. This trade represents a 51.54% decrease in their position. The sale 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. Also, CEO Todd Mckinnon sold 68,936 shares of the business’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 sale, the chief executive officer 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 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 174,224 shares of company stock worth $22,534,353 in the last quarter. Insiders own 4.61% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of OKTA. Elevation Wealth Partners LLC raised its position in Okta by 825.0% in the 4th quarter. Elevation Wealth Partners LLC now owns 296 shares of the company’s stock valued at $26,000 after purchasing an additional 264 shares in the last quarter. MassMutual Private Wealth & Trust FSB increased its stake in shares of Okta by 279.5% during the second quarter. MassMutual Private Wealth & Trust FSB now owns 296 shares of the company’s stock worth $40,000 after buying an additional 218 shares during the period. SHP Wealth Management purchased a new position in Okta in the fourth quarter worth approximately $27,000. Torren Management LLC purchased a new position in Okta in the fourth quarter worth approximately $32,000. Finally, Spire Wealth Management increased its position in shares of Okta by 30.8% in the 4th quarter. Spire Wealth Management now owns 505 shares of the company’s stock valued at $44,000 after purchasing an additional 119 shares during the last quarter. 86.64% of the stock is currently owned by hedge funds and other institutional investors.

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.