Okta (NASDAQ:OKTA) Upgraded at Bank of America

Bank of America upgraded shares of Okta (NASDAQ:OKTA) from an underperform rating to a neutral rating in a report issued on Thursday morning, MarketBeat.com reports. They currently have $170.00 price objective on the stock, up from their prior price objective of $75.00.

A number of other brokerages also recently weighed in on OKTA. BMO Capital Markets boosted their price objective on shares of Okta from $120.00 to $168.00 and gave the company an “outperform” rating in a research report on Thursday, August 20th. Jefferies Financial Group raised their target price on shares of Okta from $170.00 to $200.00 and gave the stock a “buy” rating in a report on Thursday. HC Wainwright initiated coverage on Okta in a research note on Monday, July 6th. They issued a “buy” rating for the company. UBS Group set a $175.00 target price on Okta in a report on Thursday. Finally, Stifel Nicolaus set a $180.00 price target on Okta in a research report on Thursday. One equities 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 company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $172.92.

Okta Price Performance

Shares of OKTA opened at $166.23 on Thursday. The business’s fifty day moving average price is $141.34 and its 200 day moving average price is $105.53. Okta has a 12-month low of $62.66 and a 12-month high of $174.85. The stock has a market capitalization of $28.89 billion, a PE ratio of 100.14, a price-to-earnings-growth ratio of 5.94 and a beta of 0.77.

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

Insiders Place Their Bets

In related news, CEO Todd Mckinnon sold 68,936 shares of Okta stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $146.62, for a total transaction of $10,107,396.32. Following the sale, the chief executive officer directly owned 38,484 shares in the company, valued at $5,642,524.08. The trade was a 64.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brett Tighe sold 65,000 shares of the company’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $117.25, for a total transaction 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 $14,032,480. The trade was a 35.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 165,347 shares of company stock worth $21,827,342. Insiders own 4.61% of the company’s stock.

Institutional Trading of Okta

A number of hedge funds and other institutional investors have recently made changes to their positions in OKTA. Integrated Wealth Concepts LLC acquired a new stake in shares of Okta in the 1st quarter worth approximately $225,000. NewEdge Advisors LLC increased its stake in shares of Okta by 853.4% during the first quarter. NewEdge Advisors LLC now owns 5,530 shares of the company’s stock valued at $582,000 after acquiring an additional 4,950 shares during the period. Sivia Capital Partners LLC bought a new stake in Okta during the second quarter worth approximately $244,000. Invesco Ltd. lifted its position in Okta by 34.1% in the second quarter. Invesco Ltd. now owns 430,844 shares of the company’s stock worth $43,071,000 after purchasing an additional 109,614 shares during the period. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of Okta by 122.7% in the second quarter. EverSource Wealth Advisors LLC now owns 1,621 shares of the company’s stock valued at $162,000 after buying an additional 893 shares during the period. 86.64% of the stock is currently owned by institutional investors.

Okta News Roundup

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.