Okta (NASDAQ:OKTA) to Buyback $1.00 billion in Outstanding Stock

Okta (NASDAQ:OKTA) announced that its Board of Directors has initiated a stock buyback plan on Monday, January 5th, RTT News reports. The company plans to buyback $1.00 billion in shares. This buyback authorization permits the company to repurchase up to 6.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Cowen reissued a “hold” rating on shares of Okta in a research note on Wednesday, December 3rd. DA Davidson reissued a “buy” rating and issued a $140.00 target price on shares of Okta in a research report on Wednesday, December 3rd. Berenberg Bank started coverage on shares of Okta in a research note on Tuesday, November 18th. They set a “buy” rating and a $145.00 price target on the stock. Canaccord Genuity Group restated a “buy” rating and set a $120.00 price target on shares of Okta in a report on Wednesday, December 3rd. Finally, Scotiabank decreased their price objective on shares of Okta from $105.00 to $85.00 and set a “sector perform” rating for the company in a report on Wednesday, December 3rd. Twenty-four equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Okta has an average rating of “Moderate Buy” and an average target price of $114.09.

Okta Trading Up 3.9%

Shares of NASDAQ OKTA opened at $93.84 on Thursday. The business has a fifty day simple moving average of $86.07 and a 200 day simple moving average of $90.60. The firm has a market capitalization of $16.63 billion, a price-to-earnings ratio of 86.09, a PEG ratio of 4.22 and a beta of 0.76. Okta has a one year low of $75.05 and a one year high of $127.57.

Okta (NASDAQ:OKTA) last issued its earnings results on Tuesday, December 2nd. The company reported $0.82 EPS for the quarter, topping the consensus estimate of $0.76 by $0.06. Okta had a return on equity of 3.77% and a net margin of 6.87%.The firm had revenue of $742.00 million during the quarter, compared to analysts’ expectations of $730.23 million. During the same period last year, the business earned $0.67 earnings per share. Okta’s quarterly revenue was up 11.6% compared to the same quarter last year. Okta has set its FY 2026 guidance at 3.430-3.440 EPS and its Q4 2026 guidance at 0.840-0.850 EPS. On average, research analysts anticipate that Okta will post 0.42 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Okta news, CEO Todd Mckinnon sold 11,286 shares of the firm’s stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $90.96, for a total transaction of $1,026,574.56. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, insider Eric Robert Kelleher sold 8,370 shares of Okta stock in a transaction that occurred on Thursday, December 18th. The shares were sold at an average price of $90.19, for a total value of $754,890.30. Following the sale, the insider directly owned 11,266 shares in the company, valued at $1,016,080.54. The trade was a 42.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 24,828 shares of company stock valued at $2,221,731 over the last quarter. Corporate insiders own 5.68% of the company’s stock.

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.