Okta (NASDAQ:OKTA) Upgraded by Bank of America to “Neutral” Rating

Okta (NASDAQ:OKTA) was upgraded by investment analysts at Bank of America from an “underperform” rating to a “neutral” rating in a research note issued on Thursday. The brokerage presently has a $170.00 target price on the stock. Bank of America‘s price target suggests a potential upside of 26.47% from the company’s current price.

A number of other research firms have also commented on OKTA. Wedbush reaffirmed an “outperform” rating and set a $60.00 price target on shares of Okta in a research report on Friday, May 29th. Jefferies Financial Group set a $200.00 target price on shares of Okta in a research report on Thursday. HC Wainwright initiated coverage on shares of Okta in a report on Monday, July 6th. They set a “buy” rating on the stock. Citigroup reiterated a “market outperform” rating on shares of Okta in a research note on Thursday. Finally, Scotiabank raised Okta from a “sector perform” rating to a “sector outperform” rating and increased their price target for the stock from $135.00 to $165.00 in a research report on Monday, July 6th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, Okta currently has a consensus rating of “Moderate Buy” and an average target price of $155.31.

Okta Price Performance

Shares of NASDAQ OKTA opened at $134.42 on Thursday. The firm has a market cap of $23.36 billion, a price-to-earnings ratio of 97.41, a P/E/G ratio of 4.70 and a beta of 0.77. The stock’s fifty day moving average price is $139.27 and its two-hundred day moving average price is $104.50. Okta has a one year low of $62.66 and a one year high of $157.00.

Okta (NASDAQ:OKTA) last posted its earnings results on Wednesday, August 26th. The company reported $1.05 earnings per share for the quarter, topping analysts’ consensus estimates of $0.96 by $0.09. The company had revenue of $805.00 million during the quarter, compared to the consensus estimate of $793.00 million. Okta had a return on equity of 4.15% and a net margin of 8.24%.The company’s revenue was up 10.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.91 earnings per share. Okta has set its FY 2027 guidance at 3.900-3.940 EPS and its Q3 2027 guidance at 0.920-0.940 EPS. On average, equities analysts anticipate that Okta will post 1.75 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Eric Robert Kelleher sold 3,977 shares of the stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $114.10, for a total value of $453,775.70. Following the completion of the transaction, the insider owned 19,618 shares of the company’s stock, valued at approximately $2,238,413.80. This represents a 16.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Todd Mckinnon sold 68,936 shares of the firm’s stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $146.62, for a total transaction of $10,107,396.32. Following the completion of the sale, the chief executive officer owned 38,484 shares in the company, valued at approximately $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. In the last three months, insiders have sold 165,347 shares of company stock worth $21,827,342. Insiders own 4.61% of the company’s stock.

Hedge Funds Weigh In On Okta

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Washington Trust Advisors Inc. lifted its position in shares of Okta by 64.2% in the second quarter. Washington Trust Advisors Inc. now owns 197 shares of the company’s stock worth $27,000 after buying an additional 77 shares in the last quarter. CX Institutional grew its holdings in shares of Okta by 5.1% in the second quarter. CX Institutional now owns 2,633 shares of the company’s stock valued at $359,000 after purchasing an additional 127 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of Okta by 10.7% in the first quarter. EverSource Wealth Advisors LLC now owns 1,333 shares of the company’s stock valued at $105,000 after purchasing an additional 129 shares in the last quarter. SteelPeak Wealth LLC increased its position in Okta by 2.8% in the first quarter. SteelPeak Wealth LLC now owns 5,166 shares of the company’s stock worth $407,000 after purchasing an additional 140 shares during the last quarter. Finally, Utah Retirement Systems increased its position in Okta by 0.6% in the fourth quarter. Utah Retirement Systems now owns 28,605 shares of the company’s stock worth $2,473,000 after purchasing an additional 163 shares during the last quarter. Institutional investors own 86.64% of the company’s stock.

Okta News Summary

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Quarterly results exceeded expectations. Okta reported adjusted earnings of $1.05 per share versus the $0.96 analyst consensus, while revenue increased 10.6% year over year to $805 million, topping estimates of $793 million. Okta Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Raised guidance provides an additional catalyst. Okta now expects fiscal 2027 revenue of approximately $3.216 billion to $3.226 billion, representing 10% to 11% growth and above its prior forecast of $3.19 billion to $3.21 billion. Third-quarter revenue guidance of $813 million to $817 million and EPS guidance of $0.92 to $0.94 also exceeded Wall Street expectations. Okta Lifts Full-Year Outlook as AI Agents Spur Demand
• Positive Sentiment: AI-related demand is strengthening Okta’s growth narrative. Management highlighted increasing adoption of AI agents, new products contributing roughly 30% of bookings, record non-fourth-quarter bookings and partner-led sales. Investors view identity controls as increasingly important for securing AI-driven workflows. Okta and CrowdStrike Stocks Jump After Earnings
• Neutral Sentiment: Analyst support improved, but valuation remains a consideration. Robert W. Baird reiterated a Buy rating and set a $185 price target. However, Okta’s elevated valuation—including a P/E ratio near 97—may limit further gains if growth or guidance begins to slow. Okta Buy Rating and Raised Price Target

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.