🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Okta CEO McKinnon sells shares worth $16.75 million

Published 10/22/2024, 05:08 PM
OKTA
-

SAN FRANCISCO—Todd McKinnon, the Chief Executive Officer of Okta, Inc. (NASDAQ:OKTA), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, McKinnon sold 224,533 shares of Okta's Class A Common Stock on October 18, 2024. The shares were sold at prices ranging from $74.6203 to $75.0621, totaling approximately $16.75 million.

This sale was conducted under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a trading plan for selling stocks they own. Following these transactions, McKinnon now holds no shares of Okta's Class A Common Stock directly.

The filing also indicates that McKinnon exercised options to acquire 372,033 shares of Class B Common Stock, which are convertible into Class A shares. These transactions reflect ongoing portfolio management by McKinnon, who remains an influential figure within the company.

In other recent news, Okta Inc ., a leading identity security software firm, reported a 16% year-over-year revenue increase to $646 million, primarily due to a 17% rise in subscription revenue. However, Okta's third-quarter calculated remaining performance obligations (cRPO) guidance fell short of projections, leading to several financial adjustments. Following these developments, multiple analyst firms have adjusted their outlook on Okta. Canaccord Genuity lowered its price target for Okta to $82, maintaining a Hold rating, while TD Cowen held its price target steady at $110. Piper Sandler trimmed its price target to $85, RBC Capital Markets reduced its price target to $101, and Mizuho Securities revised the price target downward to $92.

These adjustments followed Okta's annual Oktane Conference, where mixed sentiments were expressed about ongoing seat-based challenges and increasing competition. Despite these concerns, there was a positive outlook regarding new products and initiatives, such as the Interoperability Profile for Secure Identity in the Enterprise (IPSIE) and Secure Identity Integrations. The company's progress towards securing high-end enterprise clients continues unabated, with several key initiatives discussed that could potentially reaccelerate revenue growth in the second half of fiscal year 2026. These recent developments highlight Okta's ongoing efforts to strengthen its security features, drive cost efficiencies, and reinvest in new product initiatives.

InvestingPro Insights

While Todd McKinnon's recent stock sale might raise eyebrows, it's essential to consider Okta's broader financial picture. According to InvestingPro data, Okta boasts a market capitalization of $12.6 billion and has demonstrated strong revenue growth, with a 18.74% increase in the last twelve months to $2.45 billion. This growth trajectory aligns with an InvestingPro Tip suggesting that net income is expected to grow this year.

Okta's financial health appears robust, with an InvestingPro Tip highlighting that the company holds more cash than debt on its balance sheet. This strong liquidity position is further reinforced by another tip indicating that Okta's liquid assets exceed short-term obligations, providing a solid foundation for future growth and investment.

The company's gross profit margin stands at an impressive 75.82%, reflecting efficient operations and potentially strong pricing power in the identity and access management market. This aligns with an InvestingPro Tip noting Okta's "impressive gross profit margins."

While Okta wasn't profitable over the last twelve months, analysts are optimistic about its future. An InvestingPro Tip reveals that 31 analysts have revised their earnings upwards for the upcoming period, and the company is predicted to be profitable this year. This positive outlook could explain why McKinnon's stock sale, conducted under a pre-planned trading program, may not necessarily signal a lack of confidence in the company's prospects.

For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Okta, providing deeper insights into the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.