Okta (NASDAQ:OKTA) Issues Earnings Results

Okta (NASDAQ:OKTA) announced its quarterly earnings results on Wednesday. The company reported $0.65 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.96 by ($0.31), Zacks reports. Okta had a return on equity of 4.15% and a net margin of 8.24%. Okta updated its FY 2027 guidance to 3.900-3.940 EPS and its Q3 2027 guidance to 0.920-0.940 EPS.

Okta Stock Up 2.9%

NASDAQ:OKTA traded up $3.81 during trading hours on Wednesday, reaching $134.42. 5,926,579 shares of the company’s stock were exchanged, compared to its average volume of 3,455,782. The company has a market capitalization of $23.36 billion, a P/E ratio of 97.41, a price-to-earnings-growth ratio of 4.71 and a beta of 0.77. Okta has a 12 month low of $62.66 and a 12 month high of $157.00. The business’s 50-day simple moving average is $138.84 and its two-hundred day simple moving average is $104.13.

Insider Buying and Selling

In other news, insider Larissa Schwartz sold 24,971 shares of the firm’s stock in a transaction on 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 sale, the insider directly owned 23,477 shares of the company’s stock, valued at $3,148,970.01. This trade represents a 51.54% decrease in their position. The transaction 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 Okta stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $146.62, for a total value of $10,107,396.32. Following the completion of the transaction, the chief executive officer 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. 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. Insiders sold a total of 165,347 shares of company stock worth $21,827,342 over the last three months. Corporate insiders own 4.61% of the company’s stock.

Hedge Funds Weigh In On Okta

Hedge funds and other institutional investors have recently modified their holdings of the stock. Integrated Wealth Concepts LLC acquired a new stake in Okta during the 1st quarter worth about $225,000. NewEdge Advisors LLC boosted its holdings in shares of Okta by 853.4% in the first quarter. NewEdge Advisors LLC now owns 5,530 shares of the company’s stock worth $582,000 after buying an additional 4,950 shares during the period. Sivia Capital Partners LLC acquired a new position in shares of Okta in the second quarter worth about $244,000. Invesco Ltd. increased its position in shares of 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 acquiring an additional 109,614 shares in the last quarter. Finally, EverSource Wealth Advisors LLC increased its position 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 worth $162,000 after acquiring an additional 893 shares in the last quarter. Institutional investors and hedge funds own 86.64% of the company’s stock.

Wall Street Analyst Weigh In

OKTA has been the topic of a number of recent analyst reports. Jefferies Financial Group lifted their price objective on shares of Okta from $140.00 to $170.00 and gave the company a “buy” rating in a research note on Tuesday, August 18th. TD Cowen raised their target price on shares of Okta from $105.00 to $160.00 and gave the company a “hold” rating in a research note on Monday, August 17th. Susquehanna boosted their price target on shares of Okta from $80.00 to $110.00 and gave the stock a “neutral” rating in a research report on Friday, May 29th. Wall Street Zen lowered shares of Okta from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. Finally, Guggenheim increased their price objective on shares of Okta from $138.00 to $162.00 and gave the company a “buy” rating in a report on Thursday, August 20th. One research analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $140.54.

Key Headlines Impacting Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Palo Alto Networks CEO Nikesh Arora reportedly held acquisition discussions with Okta CEO Todd McKinnon in late 2024 and early 2025. Although the talks stalled over valuation, the report highlights Okta’s strategic appeal and product fit within the broader cybersecurity market. Palo Alto Networks CEO held acquisition talks with both Okta and Datadog
• Positive Sentiment: Okta was included among five stocks identified as having bullish setups heading into the fourth quarter, supported by analyst price-target increases, earnings expectations and potential AI-related growth catalysts. 5 Stocks to Buy in September Before Wall Street Catches On
• Neutral Sentiment: Pre-earnings coverage focused on expectations for Okta’s fiscal second quarter, including revenue, guidance, customer trends and profitability. The reports provided context ahead of the release but did not add new operating data. Okta Q2 Earnings Report Preview
• Neutral Sentiment: Reported August short-interest data showed zero shares and a zero-day days-to-cover ratio, suggesting the figures were incomplete or unreliable rather than indicating a meaningful change in bearish positioning.
• Neutral Sentiment: An Okta and Google Workspace webinar promoted the company’s workplace-technology integrations, offering modest evidence of ecosystem engagement but no immediate financial impact. Delivering Seamless Experiences for Modern Work
• Negative Sentiment: Okta reported quarterly EPS of $0.65, missing the $0.96 consensus estimate by $0.31. The 4.15% return on equity and 8.24% net margin also underscore profitability concerns, making the earnings miss the main downside catalyst for 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.