Okta (NASDAQ:OKTA) Sets New 12-Month High Following Earnings Beat

Okta, Inc. (NASDAQ:OKTA)’s stock price hit a new 52-week high during mid-day trading on Thursday following a stronger than expected earnings report. The company traded as high as $160.50 and last traded at $160.3280, with a volume of 369508 shares. The stock had previously closed at $134.42.

The company reported $1.05 earnings per share for the quarter, beating analysts’ consensus estimates of $0.96 by $0.09. Okta had a return on equity of 4.15% and a net margin of 8.24%.The company had revenue of $805.00 million during the quarter, compared to analyst estimates of $793.00 million. During the same quarter in the previous year, the company posted $0.91 EPS. Okta’s revenue for the quarter was up 10.6% on a year-over-year basis. Okta has set its FY 2027 guidance at 3.900-3.940 EPS and its Q3 2027 guidance at 0.920-0.940 EPS.

Okta News Roundup

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Quarterly results exceeded expectations: Okta reported adjusted EPS of $1.05 versus the $0.96 consensus estimate, while revenue rose 10.6% year over year to $805 million, ahead of the $793 million forecast. Okta quarterly earnings report
• Positive Sentiment: Raised outlook: Management lifted fiscal 2027 revenue guidance to approximately $3.216 billion-$3.226 billion, or 10%-11% growth. Third-quarter revenue guidance of $813 million-$817 million and EPS guidance of $0.92-$0.94 also topped Wall Street expectations. Okta lifts full-year outlook
• Positive Sentiment: AI-related demand is strengthening the growth narrative: Okta said AI agents are creating new identity and security requirements, with new products contributing meaningfully to bookings. Investors view AI-agent security as a potentially large new market. Okta CEO discusses AI agent security
• Positive Sentiment: Analyst support increased: KeyCorp raised its target to $190 and assigned an Overweight rating; BTIG raised its target to $187 and reiterated Buy; and Needham and Cantor Fitzgerald raised targets to $200 with Buy or Overweight ratings. These revisions signal greater confidence in Okta’s growth and fundamentals. Needham raises Okta price target
• Neutral Sentiment: Valuation remains a consideration: With Okta trading near $134 and at a high earnings multiple, the stock’s roughly $23 billion market capitalization leaves less room for execution disappointments despite the improved outlook. Okta buy thesis and margin for error

Analyst Upgrades and Downgrades

Several analysts recently issued reports on OKTA shares. TD Cowen raised their target price on Okta from $105.00 to $160.00 and gave the stock a “hold” rating in a research note on Monday, August 17th. Barclays raised their price target on Okta from $120.00 to $170.00 and gave the stock an “overweight” rating in a research note on Monday, August 17th. Evercore restated an “outperform” rating on shares of Okta in a report on Thursday. Mizuho lifted their target price on shares of Okta from $125.00 to $145.00 and gave the company a “neutral” rating in a research note on Wednesday, August 19th. Finally, Citizens Jmp raised shares of Okta from a “market perform” rating to an “outperform” rating and set a $170.00 price target for the company in a research note on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, thirty-three have given a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, Okta presently has a consensus rating of “Moderate Buy” and a consensus target price of $158.50.

Insider Buying and Selling at Okta

In related news, insider Larissa Schwartz sold 24,971 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $134.13, for a total value of $3,349,360.23. Following the sale, the insider owned 23,477 shares in the company, valued at $3,148,970.01. This represents a 51.54% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric Robert Kelleher sold 3,977 shares of the firm’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $114.10, for a total value of $453,775.70. Following the transaction, the insider directly owned 19,618 shares of the company’s stock, valued at approximately $2,238,413.80. This trade represents a 16.86% decrease in their position. 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 valued at $21,827,342 over the last ninety days. Company insiders own 4.61% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of OKTA. Integrated Wealth Concepts LLC purchased a new stake in shares of Okta during the first quarter valued at approximately $225,000. NewEdge Advisors LLC boosted its stake in Okta by 853.4% during the 1st quarter. NewEdge Advisors LLC now owns 5,530 shares of the company’s stock valued at $582,000 after purchasing an additional 4,950 shares during the last quarter. Sivia Capital Partners LLC bought a new stake in shares of Okta in the 2nd quarter worth $244,000. Invesco Ltd. raised its stake 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 purchasing an additional 109,614 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of Okta by 122.7% during the second quarter. EverSource Wealth Advisors LLC now owns 1,621 shares of the company’s stock valued at $162,000 after purchasing an additional 893 shares in the last quarter. 86.64% of the stock is owned by hedge funds and other institutional investors.

Okta Price Performance

The firm has a 50-day moving average of $139.27 and a 200 day moving average of $104.50. The company has a market capitalization of $27.47 billion, a PE ratio of 115.13, a PEG ratio of 4.70 and a beta of 0.77.

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.