Cullinan Associates Inc. Cuts Position in Okta, Inc. $OKTA

Cullinan Associates Inc. decreased its holdings in shares of Okta, Inc. (NASDAQ:OKTA) by 26.5% in the second quarter, Holdings Channel.com reports. The firm owned 20,800 shares of the company’s stock after selling 7,500 shares during the period. Cullinan Associates Inc.’s holdings in Okta were worth $2,838,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in the business. CX Institutional boosted its position in shares of Okta by 5.1% in the 2nd quarter. CX Institutional now owns 2,633 shares of the company’s stock worth $359,000 after purchasing an additional 127 shares in the last quarter. EverSource Wealth Advisors LLC increased its position in Okta by 10.7% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,333 shares of the company’s stock valued at $105,000 after buying an additional 129 shares in the last quarter. SteelPeak Wealth LLC increased its position in Okta by 2.8% during the 1st quarter. SteelPeak Wealth LLC now owns 5,166 shares of the company’s stock valued at $407,000 after buying an additional 140 shares in the last quarter. Utah Retirement Systems raised its stake in Okta by 0.6% during the fourth quarter. Utah Retirement Systems now owns 28,605 shares of the company’s stock valued at $2,473,000 after buying an additional 163 shares during the last quarter. Finally, Kestra Advisory Services LLC raised its stake in Okta by 1.7% during the fourth quarter. Kestra Advisory Services LLC now owns 9,685 shares of the company’s stock valued at $837,000 after buying an additional 166 shares during the last quarter. 86.64% of the stock is currently owned by hedge funds and other institutional investors.

Okta News Summary

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

Insider Transactions at Okta

In other news, insider Eric Robert Kelleher sold 3,977 shares of the firm’s stock in a transaction on Thursday, June 18th. The stock was 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 in the company, valued at $2,238,413.80. This trade represents a 16.86% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 24,971 shares of Okta stock in a transaction 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 completion of the sale, the insider directly owned 23,477 shares of the company’s stock, valued at $3,148,970.01. The trade was a 51.54% 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 sold 165,347 shares of company stock valued at $21,827,342 over the last 90 days. 4.61% of the stock is owned by corporate insiders.

Okta Stock Down 3.9%

Shares of OKTA stock opened at $166.23 on Friday. The company has a 50 day moving average price of $141.34 and a 200-day moving average price of $105.53. Okta, Inc. has a 52 week low of $62.66 and a 52 week high of $174.85. The firm has a market capitalization of $28.89 billion, a PE ratio of 100.14, a P/E/G ratio of 5.94 and a beta of 0.77.

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

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on OKTA. Citizens Jmp raised their price target on Okta from $170.00 to $180.00 and gave the company a “market outperform” rating in a report on Thursday. Barclays increased their price objective on shares of Okta from $170.00 to $180.00 and gave the company an “overweight” rating in a research report on Thursday. Truist Financial restated a “buy” rating and set a $200.00 price objective (up from $165.00) on shares of Okta in a research note on Thursday. Needham & Company LLC upped their target price on shares of Okta from $140.00 to $200.00 and gave the stock a “buy” rating in a research note on Thursday. Finally, Bank of America raised Okta from an “underperform” rating to a “neutral” rating and upped their price objective for the company from $75.00 to $170.00 in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and ten have issued a Hold rating to the company. According to data from MarketBeat.com, Okta has an average rating of “Moderate Buy” and a consensus price target of $172.92.

Okta 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.