Okta (NASDAQ:OKTA) Shares Gap Up on Better-Than-Expected Earnings

Okta, Inc. (NASDAQ:OKTA)’s share price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $94.72, but opened at $107.54. Okta shares last traded at $116.9480, with a volume of 3,559,076 shares traded.

The company reported $0.91 EPS for the quarter, topping the consensus estimate of $0.85 by $0.06. The company had revenue of $765.00 million for the quarter, compared to analysts’ expectations of $751.84 million. Okta had a return on equity of 4.18% and a net margin of 8.05%.The business’s revenue for the quarter was up 11.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.86 earnings per share. Okta has set its FY 2027 guidance at 3.790-3.870 EPS and its Q2 2027 guidance at 0.950-0.970 EPS.

Key Okta News

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Okta beat Q1 expectations with revenue of $765 million and adjusted EPS of $0.91, topping consensus and showing 11.2% year-over-year revenue growth. Okta (OKTA) Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management issued Q2 and full-year FY2027 guidance above or in line with estimates, reinforcing confidence in execution and future growth. Okta earnings report and conference call materials
• Positive Sentiment: Multiple firms raised targets after the earnings release, including JPMorgan to $114, BTIG to $119, Needham to $120, BMO to $120, Mizuho to $110, and Oppenheimer to $125, signaling stronger Street conviction. Analyst price target updates
• Positive Sentiment: Analysts highlighted improving enterprise momentum and AI-driven identity demand, which could expand Okta’s long-term market opportunity. Okta to Present at Upcoming Investor Conferences
• Neutral Sentiment: Okta announced it will present at upcoming investor conferences, which keeps management in front of investors but is not, by itself, a new operating catalyst. Okta to Present at Upcoming Investor Conferences

Analyst Upgrades and Downgrades

Several research firms recently issued reports on OKTA. KeyCorp raised their price target on Okta from $95.00 to $103.00 and gave the company an “overweight” rating in a report on Monday, May 18th. Stifel Nicolaus reduced their target price on shares of Okta from $121.00 to $92.00 and set a “buy” rating on the stock in a research note on Thursday, March 5th. Wolfe Research began coverage on shares of Okta in a research report on Thursday, April 16th. They set an “outperform” rating for the company. Zacks Research lowered shares of Okta from a “strong-buy” rating to a “hold” rating in a report on Thursday, March 26th. Finally, Barclays raised their price objective on shares of Okta from $90.00 to $93.00 and gave the company an “overweight” rating in a research note on Thursday, May 14th. One analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $106.97.

Insider Activity at Okta

In related news, Director David Schellhase acquired 3,712 shares of the company’s stock in a transaction that occurred on Thursday, April 16th. The shares were acquired at an average cost of $72.04 per share, for a total transaction of $267,412.48. Following the completion of the acquisition, the director directly owned 3,712 shares in the company, valued at approximately $267,412.48. The trade was a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 1,054 shares of the company’s stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $80.00, for a total transaction of $84,320.00. Following the completion of the transaction, the insider directly owned 48,448 shares of the company’s stock, valued at approximately $3,875,840. The trade was a 2.13% 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 have sold 70,884 shares of company stock valued at $5,625,648 over the last three months. Insiders own 4.61% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. Spire Wealth Management raised its stake in Okta by 30.8% during the fourth quarter. Spire Wealth Management now owns 505 shares of the company’s stock valued at $44,000 after buying an additional 119 shares in the last quarter. EverSource Wealth Advisors LLC increased its holdings in shares of Okta by 10.7% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,333 shares of the company’s stock valued at $105,000 after acquiring an additional 129 shares during the last quarter. Allworth Financial LP raised its position in shares of Okta by 6.4% during the 3rd quarter. Allworth Financial LP now owns 2,251 shares of the company’s stock valued at $206,000 after acquiring an additional 135 shares in the last quarter. Choreo LLC raised its position in shares of Okta by 2.0% during the 3rd quarter. Choreo LLC now owns 7,239 shares of the company’s stock valued at $664,000 after acquiring an additional 140 shares in the last quarter. Finally, SteelPeak Wealth LLC lifted its stake in Okta by 2.8% during 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. Institutional investors own 86.64% of the company’s stock.

Okta Stock Up 22.6%

The stock has a market capitalization of $20.55 billion, a P/E ratio of 88.32, a PEG ratio of 3.49 and a beta of 0.59. The company has a 50 day moving average of $79.01 and a 200-day moving average of $82.69.

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.