Okta’s (OKTA) Buy Rating Reiterated at Truist Financial

Truist Financial reissued their buy rating on shares of Okta (NASDAQ:OKTA) in a report released on Thursday morning, MarketBeat Ratings reports. They currently have a $200.00 price objective on the stock, up from their prior price objective of $165.00.

Other analysts have also recently issued reports about the company. Berenberg Bank lifted their price objective on Okta from $120.00 to $135.00 and gave the company a “buy” rating in a research report on Friday, May 29th. Wells Fargo & Company upgraded Okta from an “equal weight” rating to an “overweight” rating and upped their target price for the stock from $150.00 to $180.00 in a report on Monday, August 17th. KeyCorp increased their target price on Okta from $180.00 to $190.00 and gave the stock an “overweight” rating in a research report on Thursday. Morgan Stanley raised their target price on Okta from $115.00 to $180.00 and gave the company an “overweight” rating in a research note on Thursday, August 20th. Finally, Needham & Company LLC lifted their price target on Okta from $140.00 to $200.00 and gave the company a “buy” rating 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 assigned a Hold rating to the company. Based on data from MarketBeat, Okta has an average rating of “Moderate Buy” and a consensus price target of $172.92.

Okta Trading Down 3.9%

Shares of NASDAQ OKTA opened at $166.23 on Thursday. The firm has a fifty day simple moving average of $141.34 and a two-hundred day simple moving average of $105.53. Okta has a 12 month low of $62.66 and a 12 month high of $174.85. The firm has a market capitalization of $28.89 billion, a PE ratio of 100.14, a price-to-earnings-growth ratio of 5.94 and a beta of 0.77.

Okta (NASDAQ:OKTA) last announced its earnings results 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 firm had revenue of $805.00 million for the quarter, compared to analyst estimates of $793.00 million. During the same quarter in the previous year, the firm posted $0.91 EPS. The company’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. On average, sell-side analysts predict that Okta will post 1.77 earnings per share for the current year.

Insider Buying and Selling at Okta

In other news, insider Larissa Schwartz sold 24,971 shares of the business’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 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 sale was disclosed in a document filed with the SEC, which is available 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 company’s stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $146.62, for a total value of $10,107,396.32. Following the completion of the sale, the chief executive officer owned 38,484 shares in the company, valued at $5,642,524.08. The trade was a 64.17% decrease in their position. 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 sold a total of 165,347 shares of company stock worth $21,827,342 over the last three months. Company insiders own 4.61% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Eurizon Capital SGR S.p.A. purchased a new stake in shares of Okta in the fourth quarter worth $3,122,000. Swedbank AB increased its holdings in shares of Okta by 124.3% during the fourth quarter. Swedbank AB now owns 1,819,081 shares of the company’s stock valued at $157,296,000 after acquiring an additional 1,007,915 shares in the last quarter. Diversify Wealth Management LLC purchased a new position in shares of Okta in the 1st quarter worth about $2,077,000. Torque Asset Management LLC raised its position in shares of Okta by 40.5% in the 4th quarter. Torque Asset Management LLC now owns 289,141 shares of the company’s stock worth $25,002,000 after purchasing an additional 83,337 shares during the last quarter. Finally, Swiss National Bank boosted its stake in Okta by 7.7% in the 1st quarter. Swiss National Bank now owns 497,300 shares of the company’s stock worth $39,142,000 after purchasing an additional 35,700 shares in the last quarter. Hedge funds and other institutional investors own 86.64% of the company’s stock.

More Okta News

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

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.