Zacks Investment Research Upgrades Okta (OKTA) to “Buy”

Zacks Investment Research upgraded shares of Okta (NASDAQ:OKTA) from a hold rating to a buy rating in a report issued on Wednesday. The brokerage currently has $63.00 price target on the stock.

According to Zacks, “Okta, Inc. is a provider of identity for the enterprise. The Company’s product consists of Okta information technology Products and Okta for Developers. Okta IT Products include Single Sign-On, Mobility Management, Adaptive Multi-Factor Authentication, Lifecycle Management and Universal Directory. Okta for Developers include Complete Authentication, User Management, Application Programming Interface Access Management and Developer Tools. Okta, Inc. is based in SAN FRANCISCO, United States. “

A number of other equities analysts have also recently issued reports on the stock. Robert W. Baird began coverage on shares of Okta in a research report on Wednesday, October 17th. They set a neutral rating and a $65.00 price objective for the company. Canaccord Genuity reiterated a buy rating and set a $75.00 price objective on shares of Okta in a research report on Wednesday, October 10th. William Blair reiterated an outperform rating on shares of Okta in a research report on Wednesday, October 10th. BidaskClub cut shares of Okta from a strong-buy rating to a buy rating in a research report on Thursday, September 20th. Finally, SunTrust Banks upped their price objective on shares of Okta to $72.00 and gave the stock a buy rating in a research report on Friday, September 7th. Two equities research analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the stock. The stock presently has a consensus rating of Buy and an average price target of $68.50.

OKTA stock opened at $59.28 on Wednesday. The company has a market cap of $6.83 billion, a P/E ratio of -43.27 and a beta of 0.97. Okta has a 1 year low of $24.93 and a 1 year high of $75.49. The company has a quick ratio of 2.90, a current ratio of 2.90 and a debt-to-equity ratio of 1.08.

Okta (NASDAQ:OKTA) last released its quarterly earnings data on Thursday, September 6th. The company reported ($0.15) earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of ($0.36) by $0.21. The business had revenue of $94.59 million during the quarter, compared to analysts’ expectations of $85.00 million. Okta had a negative net margin of 38.13% and a negative return on equity of 56.91%. The firm’s quarterly revenue was up 57.0% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.16) EPS. As a group, research analysts expect that Okta will post -1.12 earnings per share for the current fiscal year.

In other Okta news, CFO William E. Losch sold 15,000 shares of the company’s stock in a transaction that occurred on Monday, August 13th. The shares were sold at an average price of $55.31, for a total value of $829,650.00. Following the completion of the transaction, the chief financial officer now directly owns 15,000 shares in the company, valued at approximately $829,650. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Todd Mckinnon sold 225,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 14th. The shares were sold at an average price of $55.22, for a total transaction of $12,424,500.00. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 630,319 shares of company stock valued at $40,437,266. Corporate insiders own 20.59% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in OKTA. First Trust Advisors LP acquired a new position in Okta in the 2nd quarter valued at approximately $115,170,000. FMR LLC increased its position in Okta by 28.9% in the 2nd quarter. FMR LLC now owns 7,078,025 shares of the company’s stock valued at $356,520,000 after acquiring an additional 1,585,500 shares during the period. BlackRock Inc. increased its position in Okta by 66.0% in the 2nd quarter. BlackRock Inc. now owns 3,802,964 shares of the company’s stock valued at $191,555,000 after acquiring an additional 1,512,528 shares during the period. FIL Ltd acquired a new position in Okta in the 3rd quarter valued at approximately $75,914,000. Finally, Gilder Gagnon Howe & Co. LLC increased its position in Okta by 113.5% in the 2nd quarter. Gilder Gagnon Howe & Co. LLC now owns 1,626,913 shares of the company’s stock valued at $81,948,000 after acquiring an additional 864,933 shares during the period. Hedge funds and other institutional investors own 59.84% of the company’s stock.

About Okta

Okta, Inc provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. The company offers Okta Identity Cloud, a platform that offers a suite of products to manage and secure identities, such as Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Single Sign-On that enables users to access their applications in the cloud or on-premise from various devices with a single entry of their user credentials; Adaptive Multi-Factor Authentication, a product that provides an additional layer of security for Web and mobile applications, and data of organization; Lifecycle Management, which enables IT organizations or developers to manage a user's identity throughout its lifecycle; API Access Management that enables organizations to secure APIs; and Mobility Management, which simplifies and automates mobile device administration and provisioning across phones, tablets, and laptops.

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