Morgan Stanley Has Lowered Expectations for Okta (NASDAQ:OKTA) Stock Price

Okta (NASDAQ:OKTA) had its target price decreased by research analysts at Morgan Stanley from $110.00 to $101.00 in a report released on Thursday,Benzinga reports. The brokerage currently has an “overweight” rating on the stock. Morgan Stanley’s target price would indicate a potential upside of 25.12% from the company’s previous close.

A number of other equities research analysts also recently issued reports on the company. Deutsche Bank Aktiengesellschaft decreased their price objective on Okta from $110.00 to $85.00 and set a “hold” rating on the stock in a research report on Wednesday, December 3rd. Piper Sandler lifted their price objective on shares of Okta from $95.00 to $100.00 and gave the company a “neutral” rating in a report on Monday, January 5th. Cantor Fitzgerald lowered their target price on Okta from $115.00 to $100.00 and set an “overweight” rating for the company in a report on Friday, February 27th. Susquehanna lowered their price objective on shares of Okta from $105.00 to $80.00 and set a “neutral” rating for the company in a research note on Wednesday, December 3rd. Finally, UBS Group reiterated a “buy” rating on shares of Okta in a report on Thursday, December 4th. One analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $103.25.

Okta Stock Performance

Shares of NASDAQ OKTA opened at $80.72 on Thursday. Okta has a 52-week low of $68.77 and a 52-week high of $127.57. The firm’s fifty day moving average is $85.06 and its two-hundred day moving average is $87.38. The company has a market cap of $14.31 billion, a P/E ratio of 61.62, a P/E/G ratio of 3.08 and a beta of 0.79.

Okta (NASDAQ:OKTA) last posted its earnings results on Wednesday, March 4th. The company reported $0.90 EPS for the quarter, topping analysts’ consensus estimates of $0.85 by $0.05. The company had revenue of $761.00 million for the quarter, compared to the consensus estimate of $749.87 million. Okta had a return on equity of 4.18% and a net margin of 8.05%.The firm’s revenue for the quarter was up 11.6% on a year-over-year basis. During the same period in the previous year, the business earned $0.78 earnings per share. Okta has set its FY 2027 guidance at 3.740-3.820 EPS and its Q1 2027 guidance at 0.840-0.860 EPS. As a group, analysts forecast that Okta will post 0.42 EPS for the current fiscal year.

Okta declared that its Board of Directors has approved a share buyback program on Monday, January 5th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the company to purchase up to 6.8% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

Insider Activity

In other news, insider Eric Robert Kelleher sold 2,409 shares of the firm’s stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $84.40, for a total value of $203,319.60. Following the sale, the insider directly owned 11,266 shares in the company, valued at approximately $950,850.40. This trade represents a 17.62% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Larissa Schwartz sold 1,836 shares of Okta stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $83.47, for a total transaction of $153,250.92. Following the completion of the transaction, the insider directly owned 36,328 shares in the company, valued at approximately $3,032,298.16. The trade was a 4.81% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 35,927 shares of company stock valued at $3,272,658. Corporate insiders own 5.68% of the company’s stock.

Hedge Funds Weigh In On Okta

Several institutional investors and hedge funds have recently bought and sold shares of the company. Promus Capital LLC purchased a new stake in shares of Okta during the 2nd quarter valued at $27,000. Root Financial Partners LLC purchased a new position in Okta during the 3rd quarter worth $26,000. Elevation Wealth Partners LLC increased its position in Okta by 825.0% during the 4th quarter. Elevation Wealth Partners LLC now owns 296 shares of the company’s stock valued at $26,000 after buying an additional 264 shares in the last quarter. SHP Wealth Management acquired a new position in Okta during the 4th quarter valued at about $27,000. Finally, Torren Management LLC purchased a new stake in Okta in the fourth quarter valued at about $32,000. 86.64% of the stock is owned by hedge funds and other institutional investors.

Okta News Summary

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Q4 results beat and signs of enterprise traction — Okta reported stronger-than-expected Q4 revenue and EPS (revenue ~$761M, EPS $0.90) with cRPO/contract metrics up, which underpins the near-term rally. Okta Earnings Beat, But Growth Questions Remain
• Positive Sentiment: AI‑agent product traction — Management said AI‑related products (e.g., Auth0 for AI Agents / Okta for AI Agents) contributed meaningfully to Q4 bookings and the company exceeded $3B in ACV, giving a credible growth narrative tied to securing non‑human identities. Okta Ties AI Security Push To Larger Contracts And Equity Plans
• Positive Sentiment: Analyst upgrades and bullish notes — Multiple brokers reiterated or upgraded coverage after the print (BMO upgraded to Outperform with a $97 PT; JPMorgan raised its PT slightly; Jefferies/DA Davidson remain constructive), which supports near‑term upside. BMO Capital Upgrades Okta to Outperform
• Neutral Sentiment: Mixed analyst positioning — while some firms kept or raised price targets, many others trimmed targets on a mix of valuation and near‑term growth concerns; consensus views show upside but with varied conviction. Okta To Rally Around 22%? Here Are 10 Top Analyst Forecasts For Friday
• Neutral Sentiment: Equity plan / shelf filing announced — Okta filed a $763M shelf tied to an ESOP equity offering; routine for employee programs but worth noting for potential future supply. Okta Ties AI Security Push To Larger Contracts And Equity Plans
• Negative Sentiment: Cautious FY‑2027 guidance and Q1 outlook — management’s FY‑27 and Q1 guidance implied a near‑term revenue deceleration (Q1 revenue guide slightly below Street estimates), which tempers the rally and keeps longer‑term growth questions alive. Okta’s Q4 results surpass estimates, but guidance appears mixed
• Negative Sentiment: Competition and execution questions on the AI agent opportunity — analysts warn that the AI‑agent TAM is attractive but unproven; large cloud players and security vendors are building competing solutions, making monetization and sustained re‑acceleration uncertain. Okta: Bigger Deals And Renewed Growth, Thanks To Agentic AI
• Negative Sentiment: Analyst price‑target cuts — several brokers trimmed targets post‑earnings despite positive notes, signaling caution on valuation and the company’s ability to reaccelerate growth. Benzinga Coverage of Price Target Changes

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.