Ariose Capital Management Ltd Makes New Investment in Okta, Inc. $OKTA

Ariose Capital Management Ltd acquired a new position in Okta, Inc. (NASDAQ:OKTA) in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 58,441 shares of the company’s stock, valued at approximately $12,221,000. Okta makes up approximately 14.5% of Ariose Capital Management Ltd’s investment portfolio, making the stock its 2nd largest holding.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Alta Advisers Ltd acquired a new position in Okta during the third quarter worth $254,000. Argonautica Private Wealth Management Inc. increased its stake in shares of Okta by 5.5% in the third quarter. Argonautica Private Wealth Management Inc. now owns 3,368 shares of the company’s stock valued at $704,000 after buying an additional 177 shares in the last quarter. Kestra Advisory Services LLC lifted its stake in Okta by 25.6% in the 3rd quarter. Kestra Advisory Services LLC now owns 14,698 shares of the company’s stock valued at $3,073,000 after acquiring an additional 2,997 shares in the last quarter. Platform Technology Partners acquired a new position in shares of Okta during the 3rd quarter worth approximately $237,000. Finally, Rakuten Investment Management Inc. acquired a new position in shares of Okta in the 3rd quarter worth approximately $2,213,000. 86.64% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on OKTA. UBS Group lifted their price objective on Okta from $150.00 to $200.00 and gave the company a “buy” rating in a research report on Thursday, August 27th. Zacks Research raised Okta from a “hold” rating to a “strong-buy” rating in a research report on Monday, October 26th. BMO Capital Markets upped their price target on shares of Okta from $230.00 to $245.00 and gave the company an “outperform” rating in a report on Friday, October 9th. Royal Bank Of Canada increased their price objective on Okta from $195.00 to $230.00 and gave the company an “outperform” rating in a research report on Thursday, September 24th. Finally, Stephens upped their target price on Okta from $190.00 to $240.00 and gave the stock an “overweight” rating in a research note on Friday, September 25th. Two research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $202.38.

Key Stories Impacting Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: ETFs bought about $99.5 million of Okta shares on Wednesday, with 36 funds buying versus 15 selling. In a related report, the Invesco S&P 500 Equal Weight Technology ETF initiated an $89.1 million position in Okta, making it its only addition while trimming 74 other holdings. The buying may offer support, though both reports refer to Wednesday’s activity. ETF buying article Invesco RSPT article
• Negative Sentiment: Okta shares declined alongside other software names as Wall Street retreated from AI-associated stocks, a rotation that hit recent software winners. This broad sector-driven selling was a key near-term headwind. Software sell-off article
• Negative Sentiment: A Seeking Alpha contributor downgraded Okta to Sell, arguing that its valuation bubble may be deflating. The bearish valuation view could weigh on sentiment, particularly amid the wider pullback in software stocks. Seeking Alpha downgrade

Okta Price Performance

Shares of Okta stock opened at $168.69 on Friday. The firm has a market cap of $29.49 billion, a price-to-earnings ratio of 101.62, a P/E/G ratio of 5.75 and a beta of 0.74. Okta, Inc. has a 52-week low of $62.66 and a 52-week high of $235.00. The stock has a 50-day simple moving average of $196.81 and a 200-day simple moving average of $126.92.

Okta (NASDAQ:OKTA) last released its quarterly earnings results on Wednesday, August 26th. The company reported $1.05 EPS for the quarter, beating the consensus estimate of $0.96 by $0.09. Okta had a net margin of 9.63% and a return on equity of 4.50%. The business had revenue of $805.00 million for the quarter, compared to the consensus estimate of $793.00 million. During the same period in the prior year, the company posted $0.91 earnings per share. Okta’s revenue 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. As a group, equities research analysts predict that Okta, Inc. will post 1.92 earnings per share for the current year.

Insider Activity

In other news, CEO Todd McKinnon sold 48,822 shares of the stock in a transaction that occurred on Tuesday, September 22nd. The shares were sold at an average price of $193.48, for a total value of $9,446,080.56. Following the completion of the sale, the chief executive officer directly owned 44,029 shares of the company’s stock, valued at $8,518,730.92. This represents a 52.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric Kelleher sold 6,395 shares of the business’s stock in a transaction dated Friday, September 18th. The stock was sold at an average price of $183.58, for a total value of $1,173,994.10. Following the transaction, the insider owned 18,668 shares of the company’s stock, valued at $3,427,071.44. The trade was a 25.52% decrease in their ownership of the stock. 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 137,766 shares of company stock worth $23,927,112 over the last quarter. 4.61% of the stock is currently owned by corporate insiders.

Okta Profile

Okta, Inc provides cloud-based identity and access management services. Its platform helps organizations manage how employees, customers, partners and other users sign in to applications and access digital resources.

Okta’s products include single sign-on, multifactor authentication, identity governance and user lifecycle management. Through Auth0, which Okta acquired in 2021, the company also offers tools that developers can use to add identity and authentication features to customer-facing applications.

Founded in 2009 by Todd McKinnon and Frederic Kerrest, Okta serves organizations around the world across a range of industries.