BMO Capital Markets Upgrades Okta (NASDAQ:OKTA) to Outperform

Okta (NASDAQ:OKTA) was upgraded by analysts at BMO Capital Markets from a “market perform” rating to an “outperform” rating in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has a $97.00 price target on the stock, up from their prior price target of $83.00. BMO Capital Markets’ target price would suggest a potential upside of 21.78% from the company’s previous close.

Other analysts have also issued reports about the company. Zacks Research raised Okta from a “hold” rating to a “strong-buy” rating in a report on Wednesday, February 25th. Sanford C. Bernstein reiterated an “outperform” rating on shares of Okta in a research note on Monday, December 1st. BTIG Research dropped their target price on shares of Okta from $116.00 to $90.00 and set a “buy” rating for the company in a research report on Monday. Wells Fargo & Company began coverage on shares of Okta in a report on Tuesday. They set an “equal weight” rating and a $76.00 price target for the company. Finally, Cantor Fitzgerald decreased their price objective on shares of Okta from $115.00 to $100.00 and set an “overweight” rating on the stock in a research note on Friday, February 27th. One equities research 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 MarketBeat.com, Okta has a consensus rating of “Moderate Buy” and an average price target of $102.37.

Okta Stock Up 11.0%

Shares of Okta stock opened at $79.65 on Friday. The stock has a market capitalization of $14.12 billion, a price-to-earnings ratio of 60.80, a price-to-earnings-growth ratio of 2.78 and a beta of 0.79. Okta has a twelve month low of $68.77 and a twelve month high of $127.57. The company has a 50-day simple moving average of $85.22 and a two-hundred day simple moving average of $87.46.

Okta (NASDAQ:OKTA) last announced its earnings results on Wednesday, March 4th. The company reported $0.90 EPS for the quarter, topping the consensus estimate of $0.85 by $0.05. The company had revenue of $761.00 million for the quarter, compared to analysts’ expectations of $749.87 million. Okta had a net margin of 8.05% and a return on equity of 4.22%. The business’s revenue for the quarter was up 11.6% on a year-over-year basis. During the same period last year, the firm 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. On average, sell-side analysts anticipate that Okta will post 0.42 earnings per share for the current fiscal year.

Okta declared that its Board of Directors has initiated a share repurchase plan on Monday, January 5th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to buy up to 6.8% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling at Okta

In other Okta news, insider Larissa Schwartz sold 1,836 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $83.47, for a total value 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. This represents a 4.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Todd Mckinnon sold 11,286 shares of the firm’s stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $90.96, for a total transaction of $1,026,574.56. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 35,927 shares of company stock valued at $3,272,658. 5.68% of the stock is owned by insiders.

Hedge Funds Weigh In On Okta

A number of hedge funds have recently made changes to their positions in the stock. Promus Capital LLC bought a new stake in Okta in the second quarter valued at approximately $27,000. Root Financial Partners LLC acquired a new position in shares of Okta in the 3rd quarter worth approximately $26,000. Elevation Wealth Partners LLC boosted its stake in shares of Okta by 825.0% in the 4th quarter. Elevation Wealth Partners LLC now owns 296 shares of the company’s stock valued at $26,000 after purchasing an additional 264 shares during the last quarter. SHP Wealth Management bought a new stake in shares of Okta in the 4th quarter valued at $27,000. Finally, Torren Management LLC bought a new stake in shares of Okta in the 4th quarter valued at $32,000. 86.64% of the stock is currently owned by institutional investors.

Okta News Roundup

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Q4 beat on both EPS and revenue — Okta reported $0.90 non‑GAAP EPS vs. $0.85 consensus and $761M revenue (up ~11.6% YoY); subscription growth, cRPO expansion and improved margins supported the upside. Okta Announces Fourth Quarter And Fiscal Year 2026 Financial Results
• Positive Sentiment: AI agent momentum — Management said new AI security products (including Auth0 for AI Agents) materially contributed to Q4 bookings and annual contract value surpassed $3B, giving investors a clear growth narrative around “securing AI agents.” Okta Ties AI Security Push To Larger Contracts And Equity Plans
• Positive Sentiment: Analyst upgrades and buy reiterations — Several firms reaffirmed or raised bullish views (e.g., BMO upgraded to Buy, JPMorgan nudged its target higher), which helped lift sentiment into the close. Okta: Strengthening Growth Outlook and Strategic Identity Leadership in an AI-Driven Market
• Neutral Sentiment: Guidance is mixed — Okta issued FY‑27 EPS guidance that was strong on the EPS line but Q1 revenue guidance ($749M–$753M) came in slightly below Street estimates, creating ambiguity on near‑term growth momentum. Okta Announces Fourth Quarter And Fiscal Year 2026 Financial Results
• Neutral Sentiment: Mixed analyst reactions — Although some banks raised or kept Buy ratings, many firms trimmed price targets after the print; consensus targets remain above the stock but dispersion is wide. Okta Posts Q4 Beat; Analysts Cut Price Targets For Early AI Agent ‘Leader’
• Negative Sentiment: Slower growth warning — Reuters and other outlets highlighted Okta’s projection of its slowest revenue growth since the IPO for the coming quarter, reflecting macro uncertainty and potential restraint in enterprise IT spend. Okta forecasts slowest revenue growth since IPO amid economic uncertainty
• Negative Sentiment: Analyst downgrades/low targets from some shops — A few firms (including Scotiabank’s recent note and multiple price‑target trims) set much more conservative numbers, which could limit upside if those views spread. Okta Stock Overview and Analyst Notes

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.