Okta (NASDAQ:OKTA) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Okta (NASDAQ:OKTA) had its target price upped by equities research analysts at Morgan Stanley from $180.00 to $200.00 in a report issued on Thursday,Benzinga reports. The firm currently has an “overweight” rating on the stock. Morgan Stanley’s target price suggests a potential upside of 22.49% from the stock’s current price.

Several other equities research analysts have also recently commented on the stock. Citizens Jmp raised shares of Okta from a “market perform” rating to an “outperform” rating and set a $170.00 target price for the company in a research report on Wednesday, August 12th. Raymond James Financial reissued an “outperform” rating on shares of Okta in a research report on Thursday. UBS Group reissued a “buy” rating on shares of Okta in a research note on Thursday. Evercore reaffirmed an “outperform” rating on shares of Okta in a research note on Thursday. Finally, Berenberg Bank lifted their target price on shares of Okta from $120.00 to $135.00 and gave the company a “buy” rating in a report on Friday, May 29th. One investment analyst has rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $158.50.

Okta Stock Performance

NASDAQ:OKTA opened at $163.28 on Thursday. The business’s fifty day moving average is $139.27 and its 200 day moving average is $104.50. The firm has a market cap of $28.38 billion, a price-to-earnings ratio of 120.23, a PEG ratio of 4.70 and a beta of 0.77. Okta has a 52-week low of $62.66 and a 52-week high of $160.50.

Okta (NASDAQ:OKTA) last announced 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. The firm had revenue of $805.00 million during the quarter, compared to the consensus estimate of $793.00 million. Okta had a net margin of 8.24% and a return on equity of 4.15%. The business’s quarterly revenue was up 10.6% compared to the same quarter last year. During the same period last year, the firm earned $0.91 EPS. Okta has set its FY 2027 guidance at 3.900-3.940 EPS and its Q3 2027 guidance at 0.920-0.940 EPS. Equities analysts predict that Okta will post 1.75 EPS for the current fiscal year.

Insider Activity at Okta

In other Okta news, CFO Brett Tighe sold 65,000 shares of the business’s stock in a transaction on Monday, June 8th. The shares were sold at an average price of $117.25, for a total transaction of $7,621,250.00. Following the completion of the sale, the chief financial officer directly owned 119,680 shares in the company, valued at approximately $14,032,480. The trade was a 35.20% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 2,463 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $120.00, for a total value of $295,560.00. Following the completion of the transaction, the insider directly owned 25,241 shares in the company, valued at approximately $3,028,920. This represents a 8.89% 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. In the last 90 days, insiders sold 165,347 shares of company stock worth $21,827,342. Company insiders own 4.61% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Integrated Wealth Concepts LLC bought a new position in Okta in the 1st quarter worth $225,000. NewEdge Advisors LLC raised its holdings in Okta by 853.4% during the 1st quarter. NewEdge Advisors LLC now owns 5,530 shares of the company’s stock valued at $582,000 after buying an additional 4,950 shares during the period. Sivia Capital Partners LLC bought a new stake in shares of Okta in the 2nd quarter worth about $244,000. Invesco Ltd. grew its holdings in Okta by 34.1% during the 2nd quarter. Invesco Ltd. now owns 430,844 shares of the company’s stock valued at $43,071,000 after purchasing an additional 109,614 shares during the last quarter. Finally, EverSource Wealth Advisors LLC raised its position in Okta by 122.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,621 shares of the company’s stock worth $162,000 after purchasing an additional 893 shares during the period. 86.64% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Quarterly results exceeded expectations: Okta reported adjusted EPS of $1.05 versus the $0.96 consensus estimate, while revenue rose 10.6% year over year to $805 million, ahead of the $793 million forecast. Okta quarterly earnings report
• Positive Sentiment: Raised outlook: Management lifted fiscal 2027 revenue guidance to approximately $3.216 billion-$3.226 billion, or 10%-11% growth. Third-quarter revenue guidance of $813 million-$817 million and EPS guidance of $0.92-$0.94 also topped Wall Street expectations. Okta lifts full-year outlook
• Positive Sentiment: AI-related demand is strengthening the growth narrative: Okta said AI agents are creating new identity and security requirements, with new products contributing meaningfully to bookings. Investors view AI-agent security as a potentially large new market. Okta CEO discusses AI agent security
• Positive Sentiment: Analyst support increased: KeyCorp raised its target to $190 and assigned an Overweight rating; BTIG raised its target to $187 and reiterated Buy; and Needham and Cantor Fitzgerald raised targets to $200 with Buy or Overweight ratings. These revisions signal greater confidence in Okta’s growth and fundamentals. Needham raises Okta price target
• Neutral Sentiment: Valuation remains a consideration: With Okta trading near $134 and at a high earnings multiple, the stock’s roughly $23 billion market capitalization leaves less room for execution disappointments despite the improved outlook. Okta buy thesis and margin for error

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.