Okta (NASDAQ:OKTA) Sets New 1-Year Low on Analyst Downgrade

Okta, Inc. (NASDAQ:OKTA) shares hit a new 52-week low during mid-day trading on Wednesday after Morgan Stanley lowered their price target on the stock from $123.00 to $110.00. Morgan Stanley currently has an overweight rating on the stock. Okta traded as low as $75.05 and last traded at $82.3330, with a volume of 3495522 shares trading hands. The stock had previously closed at $81.87.

Several other brokerages have also weighed in on OKTA. Royal Bank Of Canada decreased their price objective on Okta from $115.00 to $97.00 and set an “outperform” rating for the company in a report on Wednesday. Canaccord Genuity Group upgraded shares of Okta from a “hold” rating to a “buy” rating and increased their target price for the stock from $115.00 to $120.00 in a research report on Tuesday, August 26th. BMO Capital Markets reduced their target price on shares of Okta from $112.00 to $90.00 and set a “market perform” rating for the company in a research note on Wednesday. Citigroup lowered their price target on shares of Okta from $110.00 to $100.00 and set a “neutral” rating on the stock in a research report on Wednesday. Finally, KeyCorp restated an “overweight” rating and set a $140.00 price target on shares of Okta in a research note on Monday. Twenty-three analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $112.08.

Insiders Place Their Bets

In related news, CEO Todd Mckinnon sold 31,968 shares of the stock in a transaction on Monday, September 22nd. The stock was sold at an average price of $92.33, for a total value of $2,951,605.44. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Larissa Schwartz sold 1,318 shares of Okta stock in a transaction on Tuesday, November 11th. The shares were sold at an average price of $85.26, for a total value of $112,372.68. Following the sale, the insider directly owned 36,519 shares of the company’s stock, valued at $3,113,609.94. This represents a 3.48% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 64,975 shares of company stock worth $6,011,126. Company insiders own 5.68% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of OKTA. Pinnacle Bancorp Inc. bought a new stake in shares of Okta in the 2nd quarter worth approximately $26,000. Root Financial Partners LLC purchased a new position in Okta in the 3rd quarter worth $26,000. Harbour Investments Inc. lifted its stake in Okta by 152.4% in the first quarter. Harbour Investments Inc. now owns 260 shares of the company’s stock worth $27,000 after purchasing an additional 157 shares during the last quarter. Promus Capital LLC purchased a new stake in Okta during the second quarter valued at about $27,000. Finally, Kiker Wealth Management LLC boosted its position in Okta by 1,159.3% during the second quarter. Kiker Wealth Management LLC now owns 340 shares of the company’s stock valued at $34,000 after buying an additional 313 shares during the period. 86.64% of the stock is currently owned by institutional investors.

Okta Price Performance

The stock has a market capitalization of $15.04 billion, a P/E ratio of 78.81, a PEG ratio of 4.24 and a beta of 0.77. The stock has a 50 day moving average price of $86.88 and a 200-day moving average price of $93.96.

Okta (NASDAQ:OKTA) last issued its earnings results on Tuesday, December 2nd. The company reported $0.82 earnings per share for the quarter, beating the consensus estimate of $0.76 by $0.06. The company had revenue of $742.00 million during the quarter, compared to analysts’ expectations of $730.23 million. Okta had a return on equity of 3.77% and a net margin of 6.87%.Okta’s quarterly revenue was up 11.6% compared to the same quarter last year. During the same period in the prior year, the business posted $0.67 EPS. Okta has set its FY 2026 guidance at 3.430-3.440 EPS and its Q4 2026 guidance at 0.840-0.850 EPS. Research analysts predict that Okta, Inc. will post 0.42 earnings per share for the current fiscal year.

Okta Company Profile

Okta, Inc operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Sign-On that enables users to access applications in the cloud or on-premises from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data; API Access Management enables organizations to secure APIs; Access Gateway enables organizations to extend Workforce Identity Cloud; and Okta Device Access enables end users to securely log in to devices with Okta credentials.