Okta (NASDAQ:OKTA) Stock Rating Upgraded by Bank of America

Okta (NASDAQ:OKTA) was upgraded by Bank of America from an “underperform” rating to a “neutral” rating in a report released on Thursday. The brokerage currently has a $170.00 price target on the stock. Bank of America‘s price target points to a potential upside of 26.47% from the company’s current price.

Other research analysts have also recently issued research reports about the stock. Weiss Ratings upgraded shares of Okta from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, June 3rd. Canaccord Genuity Group boosted their price target on shares of Okta from $95.00 to $115.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. Citigroup restated a “market outperform” rating on shares of Okta in a research note on Thursday. The Goldman Sachs Group started coverage on Okta in a report on Monday, July 6th. They issued a “buy” rating for the company. Finally, Truist Financial lifted their target price on Okta from $120.00 to $165.00 and gave the company a “buy” rating in a research report on Wednesday, August 19th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating and nine have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $155.31.

Okta Stock Performance

Shares of Okta stock opened at $134.42 on Thursday. The firm has a market cap of $23.36 billion, a PE ratio of 97.41, a P/E/G ratio of 4.70 and a beta of 0.77. The business’s 50 day simple moving average is $139.27 and its 200 day simple moving average is $104.50. Okta has a 52-week low of $62.66 and a 52-week high of $157.00.

Okta (NASDAQ:OKTA) last released its quarterly earnings results on Wednesday, August 26th. The company reported $1.05 earnings per share for the quarter, topping analysts’ consensus estimates 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 return on equity of 4.15% and a net margin of 8.24%.The business’s revenue was up 10.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $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. As a group, equities research analysts predict that Okta will post 1.75 EPS for the current year.

Insider Activity

In other Okta news, insider Eric Robert Kelleher sold 3,977 shares of the company’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $114.10, for a total value of $453,775.70. Following the sale, the insider owned 19,618 shares in the company, valued at $2,238,413.80. This represents a 16.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 2,463 shares of the firm’s stock in a transaction that occurred on 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 sale, the insider directly owned 25,241 shares of the company’s stock, valued at approximately $3,028,920. The trade was a 8.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 165,347 shares of company stock valued at $21,827,342 in the last 90 days. 4.61% of the stock is owned by company insiders.

Institutional Investors Weigh In On Okta

Large investors have recently added to or reduced their stakes in the business. SHP Wealth Management bought a new position in Okta during the fourth quarter worth $27,000. Washington Trust Advisors Inc. boosted its holdings in shares of Okta by 64.2% during the 2nd quarter. Washington Trust Advisors Inc. now owns 197 shares of the company’s stock worth $27,000 after buying an additional 77 shares during the period. Torren Management LLC bought a new stake in shares of Okta during the 4th quarter worth about $32,000. MassMutual Private Wealth & Trust FSB grew its stake in Okta by 279.5% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 296 shares of the company’s stock valued at $40,000 after buying an additional 218 shares during the last quarter. Finally, Assetmark Inc. grew its stake in Okta by 81.1% in the 1st quarter. Assetmark Inc. now owns 719 shares of the company’s stock valued at $57,000 after buying an additional 322 shares during the last quarter. Institutional investors own 86.64% of the company’s stock.

Okta News Roundup

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Quarterly results exceeded expectations. Okta reported adjusted earnings of $1.05 per share versus the $0.96 analyst consensus, while revenue increased 10.6% year over year to $805 million, topping estimates of $793 million. Okta Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Raised guidance provides an additional catalyst. Okta now expects fiscal 2027 revenue of approximately $3.216 billion to $3.226 billion, representing 10% to 11% growth and above its prior forecast of $3.19 billion to $3.21 billion. Third-quarter revenue guidance of $813 million to $817 million and EPS guidance of $0.92 to $0.94 also exceeded Wall Street expectations. Okta Lifts Full-Year Outlook as AI Agents Spur Demand
• Positive Sentiment: AI-related demand is strengthening Okta’s growth narrative. Management highlighted increasing adoption of AI agents, new products contributing roughly 30% of bookings, record non-fourth-quarter bookings and partner-led sales. Investors view identity controls as increasingly important for securing AI-driven workflows. Okta and CrowdStrike Stocks Jump After Earnings
• Neutral Sentiment: Analyst support improved, but valuation remains a consideration. Robert W. Baird reiterated a Buy rating and set a $185 price target. However, Okta’s elevated valuation—including a P/E ratio near 97—may limit further gains if growth or guidance begins to slow. Okta Buy Rating and Raised Price Target

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.