Cullinan Associates Inc. Sells 7,500 Shares of Okta, Inc. $OKTA

Cullinan Associates Inc. lessened its holdings in Okta, Inc. (NASDAQ:OKTA) by 26.5% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 20,800 shares of the company’s stock after selling 7,500 shares during the quarter. Cullinan Associates Inc.’s holdings in Okta were worth $2,838,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also added to or reduced their stakes in the business. Norges Bank bought a new position in shares of Okta during the fourth quarter valued at about $175,193,000. Allspring Global Investments Holdings LLC increased its holdings in shares of Okta by 71.9% in the first quarter. Allspring Global Investments Holdings LLC now owns 3,553,091 shares of the company’s stock worth $281,209,000 after buying an additional 1,485,963 shares during the period. First Trust Advisors LP lifted its stake in shares of Okta by 28.2% in the 4th quarter. First Trust Advisors LP now owns 6,030,090 shares of the company’s stock valued at $521,422,000 after acquiring an additional 1,326,051 shares during the last quarter. Alyeska Investment Group L.P. lifted its stake in shares of Okta by 276.9% in the 3rd quarter. Alyeska Investment Group L.P. now owns 1,403,499 shares of the company’s stock valued at $128,701,000 after acquiring an additional 1,031,083 shares during the last quarter. Finally, Swedbank AB boosted its holdings in Okta by 124.3% during the 4th quarter. Swedbank AB now owns 1,819,081 shares of the company’s stock valued at $157,296,000 after acquiring an additional 1,007,915 shares during the period. 86.64% of the stock is owned by institutional investors.

Insider Transactions at Okta

In related news, insider Larissa Schwartz sold 24,971 shares of Okta stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $134.13, for a total transaction of $3,349,360.23. Following the sale, the insider directly owned 23,477 shares in the company, valued at $3,148,970.01. The trade was a 51.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Todd Mckinnon sold 68,936 shares of the company’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $146.62, for a total value of $10,107,396.32. Following the completion of the sale, the chief executive officer directly owned 38,484 shares in the company, valued at approximately $5,642,524.08. The trade was a 64.17% 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 have sold a total of 165,347 shares of company stock worth $21,827,342 over the last quarter. Insiders own 4.61% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on OKTA shares. Wedbush reaffirmed an “outperform” rating and issued a $60.00 price target on shares of Okta in a research note on Friday, May 29th. DA Davidson increased their price objective on Okta from $165.00 to $190.00 and gave the company a “buy” rating in a research note on Thursday. Evercore restated an “outperform” rating and issued a $185.00 target price on shares of Okta in a report on Thursday. Weiss Ratings raised shares of Okta from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, June 3rd. Finally, Wells Fargo & Company upgraded shares of Okta from an “equal weight” rating to an “overweight” rating and upped their price target for the company from $150.00 to $180.00 in a report on Monday, August 17th. One research analyst has rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and ten have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $172.92.

Okta Stock Down 3.9%

NASDAQ:OKTA opened at $166.23 on Friday. The firm’s fifty day simple moving average is $141.34 and its 200 day simple moving average is $105.53. The stock has a market cap of $28.89 billion, a P/E ratio of 100.14, a price-to-earnings-growth ratio of 5.94 and a beta of 0.77. Okta, Inc. has a twelve month low of $62.66 and a twelve month high of $174.85.

Okta (NASDAQ:OKTA) last released its quarterly earnings results on Wednesday, August 26th. The company reported $1.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.96 by $0.09. Okta had a net margin of 9.63% and a return on equity of 4.50%. The company had revenue of $805.00 million during the quarter, compared to the consensus estimate of $793.00 million. During the same period in the prior year, the firm earned $0.91 earnings per share. Okta’s revenue was up 10.6% on a year-over-year basis. Okta has set its FY 2027 guidance at 3.900-3.940 EPS and its Q3 2027 guidance at 0.920-0.940 EPS. On average, analysts expect that Okta, Inc. will post 1.77 EPS for the current fiscal year.

Okta News Roundup

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Quarterly beat and raised outlook: Okta reported adjusted earnings of $1.05 per share versus the $0.96 consensus, while revenue increased 10.6% year over year to $805 million, ahead of the roughly $793 million estimate. Subscription revenue rose 12%, and management raised its fiscal 2027 revenue outlook to approximately $3.216 billion-$3.226 billion, or 10%-11% growth. OKTA Q2 Earnings Beat on Subscription Growth, FY27 View Raised
• Positive Sentiment: AI is expanding the identity-security market: Analysts and company executives highlighted rising demand to secure AI agents and other nonhuman identities. Okta’s new Agent SSO product is designed to provide access controls, visibility and policy management for enterprise AI agents, potentially creating a new growth avenue as AI adoption accelerates. Okta Launches Agent SSO For Enterprise AI Access
• Positive Sentiment: Wall Street became more constructive: JPMorgan, Morgan Stanley, RBC, Oppenheimer, Truist, Needham and other firms raised price targets, with several targeting $190-$200 and maintaining buy or overweight ratings. Wells Fargo also upgraded the stock, citing signs that Okta’s growth strategy is improving. Okta Posts Q2 Beat, Analysts Raise Price Targets
• Neutral Sentiment: Technical momentum is strong: OKTA moved above its 20-day and 50-day moving averages and reached a multiyear high. This supports a bullish trading trend but also leaves the stock more exposed to profit-taking after its rapid advance. Okta Recently Broke Out Above the 20-Day Moving Average
• Negative Sentiment: Valuation and execution risks remain: With the stock near its 52-week high and trading at an elevated earnings multiple, the market is pricing in substantial future growth. Some analysts remain neutral, and commentary notes that AI security is still an early-stage opportunity rather than a major current revenue driver. Okta’s Buy Thesis Holds, But the Margin for Error Is Smaller
• Negative Sentiment: AI also creates new threats: The rapid growth of AI-generated identities and agents could increase demand for Okta’s products, but it also introduces additional attack surfaces and security-complexity concerns that the company must successfully address. Okta’s AI Boom Just Created a New Security Problem

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.