Crossmark Global Holdings Inc. has significantly reduced its stake in Okta, Inc. (NASDAQ: OKTA), selling 27,494 shares during the third quarter of 2023. This reduction equates to a 59.1% decrease in holdings, leaving Crossmark with 19,019 shares valued at approximately $1,744,000 at the end of the reporting period, as detailed in their recent 13F filing with the Securities and Exchange Commission.
This move comes as several other institutional investors and hedge funds have also adjusted their positions in Okta. For instance, Promus Capital LLC acquired a new stake in the company valued at about $27,000, while Root Financial Partners LLC purchased shares worth approximately $26,000. Aster Capital Management DIFC Ltd joined in with a new position valued around $34,000. Notably, Westside Investment Management Inc. increased its stake by 86.9%, owning 415 shares worth about $38,000 after purchasing an additional 193 shares.
The data shows that institutional investors collectively hold 86.64% of Okta’s stock, highlighting the significant influence these entities have on the company’s market dynamics.
Analyst Ratings and Stock Performance
Wall Street analysts have provided a mixed outlook for Okta. According to research reports, analysts have adjusted target prices for the stock. For example, Jefferies Financial Group lowered its target from $125.00 to $105.00, maintaining a “buy” rating. The Goldman Sachs Group also revised its price objective from $137.00 to $117.00, retaining a “buy” rating. Other firms like BTIG Research cut their target from $116.00 to $90.00 while still endorsing a “buy” rating.
As of now, one analyst has rated Okta with a “Strong Buy,” while 26 analysts have assigned a “Buy” rating, 10 have given a Hold rating, and two have issued a Sell rating. The consensus rating stands at “Moderate Buy,” with a target price of $103.25, according to MarketBeat.com.
Okta’s stock opened at $80.72 on March 4, 2024. The company currently boasts a market capitalization of $14.31 billion, a PE ratio of 61.62, and a price-to-earnings-growth ratio of 3.33. Over the past year, Okta’s stock has fluctuated between a low of $68.77 and a high of $127.57.
Insider Transactions and Future Guidance
In recent insider trading activity, Okta’s Chief Financial Officer, Brett Tighe, sold 10,000 shares on January 13, 2024, at an average price of $95.07, totaling $950,700. This sale represented a 6.93% decrease in his ownership, leaving him with 134,385 shares valued at approximately $12,775,981.95. Additionally, insider Eric Robert Kelleher sold 2,409 shares on January 2, 2024, for about $203,319.60, marking a 17.62% reduction in his stock holdings.
In recent earnings announcements, Okta reported earnings per share (EPS) of $0.90 for the latest quarter, surpassing analysts’ expectations of $0.85. The company generated $761.00 million in revenue, exceeding projections of $749.87 million, marking an 11.6% year-over-year revenue increase. Looking ahead, Okta has set its FY 2027 guidance at an EPS between $3.740 and $3.820, with Q1 2027 guidance in the range of $0.840 to $0.860.
In a positive sign for shareholders, Okta’s Board of Directors authorized a stock buyback plan on January 5, 2024. This plan allows the company to repurchase up to $1.00 billion in shares, equating to approximately 6.8% of its stock, a move often interpreted as an indication of the board’s belief in the company’s undervaluation.
Overall, Okta remains a significant player in the identity and access management sector, with its future performance closely watched by analysts and investors alike. As the company continues to navigate a competitive landscape, its strategic decisions and market responses will play crucial roles in shaping its trajectory in the coming quarters.
