SAN FRANCISCO—Tighe Brett, the Chief Financial Officer of Okta, Inc. (NASDAQ:OKTA), recently executed a series of stock transactions involving the company's Class A Common Stock. According to a filing with the Securities and Exchange Commission, Brett sold a total of 5,000 shares on January 21, 2025. The shares were sold at prices ranging from $88.74 to $89.47 per share, amounting to a total value of approximately $445,023. The transaction represents a small portion of Okta's $15.05 billion market capitalization, with the company maintaining impressive gross profit margins of 76%.
Following these transactions, Brett holds 112,533 shares of Okta's Class A Common Stock directly. Additionally, Brett maintains indirect ownership of 1,250 shares through a trust. The transactions were conducted under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks to avoid any concerns about insider trading. According to InvestingPro data, 36 analysts have recently revised their earnings expectations upward for the upcoming period.
This activity comes as Okta, a leading provider of identity management solutions, continues to navigate the competitive landscape of technology services. Investors and analysts will be watching closely to see how these insider transactions might reflect on the company's future performance, particularly with the company's next earnings report scheduled for February 26, 2025. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other top US stocks.
In other recent news, Okta, Inc. has been the focus of several analyst updates following impressive third-quarter results. KeyBanc Capital Markets upgraded Okta's stock from Sector Weight to Overweight, setting a new price target of $115, citing a positive outlook in the security sector. The firm's optimism is supported by recent data showing 36 analysts revising their earnings expectations upward for the upcoming period.
Baird also increased its price target on Okta shares to $115, identifying Okta as one of its top small to mid-cap investment ideas for the upcoming year. Meanwhile, Bernstein reduced its price target for Okta to $124, but maintained an Outperform rating, suggesting significant potential upside.
Piper Sandler maintained a Neutral rating on Okta, raising the price target to $90 from $85, following a slight uptick in calculated remaining performance obligations (cRPO) growth. BMO Capital also held a Market Perform rating and a $105 price target on Okta, indicating a balanced outlook with equal measures of opportunities and risks.
These recent developments highlight Okta's strong performance, with a 14% increase in revenue and a 13% rise in cRPO growth. Analysts anticipate that the headwinds affecting seat numbers may start to ease by fiscal year 2026, supported by data indicating strengthening performance in the small and medium-sized business (SMB) segment. Despite Okta's current lack of profitability, analysts predict profitability this year.
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