Okta (NASDAQ:OKTA) Board Declares Stock Buyback Program

Okta (NASDAQ:OKTA) declared that its board has approved a stock repurchase plan on Monday, January 5th, RTT News reports. The company plans to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the company to buy up to 6.8% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its shares are undervalued.

Analysts Set New Price Targets

Several analysts recently weighed in on OKTA shares. BMO Capital Markets dropped their price target on Okta from $112.00 to $90.00 and set a “market perform” rating for the company in a report on Wednesday, December 3rd. Morgan Stanley lowered their price objective on Okta from $123.00 to $110.00 and set an “overweight” rating on the stock in a research report on Wednesday, December 3rd. Jefferies Financial Group raised Okta from a “hold” rating to a “buy” rating and lifted their target price for the stock from $90.00 to $125.00 in a report on Tuesday, December 16th. Sanford C. Bernstein restated an “outperform” rating on shares of Okta in a research note on Monday, December 1st. Finally, Berenberg Bank initiated coverage on shares of Okta in a research report on Tuesday, November 18th. They set a “buy” rating and a $145.00 price target on the stock. Twenty-four analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $114.09.

Okta Trading Up 3.0%

NASDAQ OKTA opened at $90.36 on Wednesday. The firm’s 50 day simple moving average is $85.95 and its 200 day simple moving average is $90.57. The firm has a market capitalization of $16.01 billion, a price-to-earnings ratio of 82.90, a P/E/G ratio of 4.10 and a beta of 0.76. Okta has a 1 year low of $75.05 and a 1 year high of $127.57.

Okta (NASDAQ:OKTA) last released its earnings results on Tuesday, December 2nd. The company reported $0.82 earnings per share for the quarter, topping the consensus estimate of $0.76 by $0.06. The firm 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%.The company’s quarterly revenue was up 11.6% on a year-over-year basis. During the same period in the prior year, the company earned $0.67 earnings per share. Okta has set its FY 2026 guidance at 3.430-3.440 EPS and its Q4 2026 guidance at 0.840-0.850 EPS. On average, equities research analysts forecast that Okta will post 0.42 earnings per share for the current year.

Key Headlines Impacting Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Board authorizes $1 billion share repurchase (up to ~6.8% of shares), which can reduce float, boost EPS and is being read as a signal management views the stock as undervalued. Okta Announces $1 Billion Share Repurchase Program
• Positive Sentiment: Robert W. Baird analyst Shrenik Kothari maintained a Buy rating, citing OKTA’s cash generation and the $1B buyback as support for 2026 upside — analyst support can help sustain investor demand. Okta: Undervalued Security Platform Poised for 2026 Upside
• Neutral Sentiment: Media coverage and market commentary note shares have edged higher following the buyback announcement, helping momentum but not adding new fundamental information. Okta (OKTA) stock is up, what you need to know
• Neutral Sentiment: Okta is scheduled to present at an investor conference (upcoming presentation could provide additional color on strategy and execution). Okta to Present at Upcoming Investor Conference: Key Insights for Investors
• Negative Sentiment: Insider sale: Eric Robert Kelleher sold 2,409 shares at an average $84.40 on Jan 2 (17.6% reduction in his holding), disclosed in an SEC filing — insider sales can be perceived negatively, though this appears modest relative to the company’s buyback. SEC Form 4 – Insider Sale

Insider Activity

In related news, insider Larissa Schwartz sold 1,318 shares of Okta stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $85.71, for a total transaction of $112,965.78. Following the sale, the insider directly owned 35,201 shares of the company’s stock, valued at approximately $3,017,077.71. The trade was a 3.61% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Eric Robert Kelleher sold 2,409 shares of the company’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $84.40, for a total transaction of $203,319.60. Following the transaction, the insider owned 11,266 shares of the company’s stock, valued at approximately $950,850.40. This represents a 17.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 24,828 shares of company stock worth $2,221,731. Corporate insiders own 5.68% of the company’s stock.

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.