SAN FRANCISCO—Larissa Schwartz, the Chief Legal Officer and Corporate Secretary of Okta, Inc. (NASDAQ:OKTA), recently reported a significant transaction involving the company's stock. On January 22, Schwartz sold 2,704 shares of Okta's Class A Common Stock at a price of $89.58 per share, amounting to a total of $242,224. This transaction was executed under a pre-established Rule 10b5-1 trading plan, which was adopted on September 30, 2024. The sale occurred as Okta, a $15.2 billion identity management company, trades near $88.86 per share, having gained nearly 12% year-to-date. According to InvestingPro analysis, the stock currently appears undervalued based on its Fair Value assessment.
Following the sale, Schwartz holds 23,311 shares of Okta's Class A Common Stock. Additionally, Schwartz exercised stock options to acquire 1,553 shares of Class A Common Stock, though these transactions did not involve any cash exchange as they were part of her employee stock option plan.
These transactions come as part of regular trading activities and stock option exercises by company executives, which are often planned in advance.
In other recent news, Okta, Inc. has been the focus of multiple analyst upgrades and updates following a robust third quarter. KeyBanc Capital Markets upgraded the company's stock from Sector Weight to Overweight, establishing a new price target of $115.00. This reflects a positive outlook on Okta's prospects within the security sector. The firm also highlighted Okta's strong operational efficiency, supported by impressive gross profit margins of 76.12% and robust revenue growth of 16.84% over the last twelve months.
Baird increased its price target on Okta shares to $115, retaining an Outperform rating. The firm identified Okta as one of its top small to mid-cap investment ideas for the upcoming year, citing the company's potential for substantial growth and a higher valuation multiple. Bernstein, despite reducing its price target from $129.00 to $124.00, continues to hold an Outperform rating on the stock, expressing confidence in Okta's future performance.
BMO Capital maintained a Market Perform rating and a $105.00 price target on Okta shares, suggesting a balanced outlook with equal measures of opportunities and risks. Piper Sandler also maintained a Neutral rating on Okta, raising the price target to $90 from $85, following the company's slight uptick in calculated remaining performance obligations (cRPO) growth.
These updates come in the wake of Okta's robust Q3 results, which showcased a 14% increase in revenue and a 13% rise in cRPO growth. Despite some operational challenges, Okta remains a dominant player in the identity management market, benefiting from the growing adoption of Zero Trust security frameworks.
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