Needham & Company LLC Has Lowered Expectations for Okta (NASDAQ:OKTA) Stock Price

Okta (NASDAQ:OKTA) had its price target cut by stock analysts at Needham & Company LLC from $110.00 to $90.00 in a report released on Thursday,Benzinga reports. The firm presently has a “buy” rating on the stock. Needham & Company LLC’s price objective indicates a potential upside of 25.45% from the company’s previous close.

A number of other equities analysts also recently commented on OKTA. KeyCorp dropped their target price on shares of Okta from $130.00 to $115.00 and set an “overweight” rating on the stock in a research note on Tuesday, February 17th. Citigroup reiterated a “neutral” rating on shares of Okta in a report on Monday, January 12th. Scotiabank reduced their price objective on Okta from $105.00 to $85.00 and set a “sector perform” rating on the stock in a report on Wednesday, December 3rd. BMO Capital Markets decreased their target price on Okta from $90.00 to $83.00 and set a “market perform” rating for the company in a research report on Thursday, February 26th. Finally, Morgan Stanley lowered their target price on Okta from $110.00 to $101.00 and set an “overweight” rating for the company in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Okta currently has a consensus rating of “Moderate Buy” and an average target price of $105.35.

Okta Stock Down 1.1%

Shares of Okta stock opened at $71.74 on Thursday. The stock’s fifty day moving average is $85.40 and its two-hundred day moving average is $87.51. Okta has a 52 week low of $68.77 and a 52 week high of $127.57. The company has a market capitalization of $12.71 billion, a PE ratio of 65.82, a price-to-earnings-growth ratio of 2.81 and a beta of 0.79.

Okta (NASDAQ:OKTA) last issued its earnings results on Wednesday, March 4th. The company reported $0.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.85 by $0.05. The firm had revenue of $761.00 million during the quarter, compared to analyst estimates of $749.87 million. Okta had a net margin of 6.87% and a return on equity of 3.77%. The business’s revenue was up 11.6% on a year-over-year basis. During the same period in the previous year, the firm earned $0.78 earnings per share. Okta has set its FY 2027 guidance at 3.740-3.820 EPS and its Q1 2027 guidance at 0.840-0.860 EPS. As a group, research analysts anticipate that Okta will post 0.42 earnings per share for the current year.

Okta declared that its Board of Directors has initiated a share buyback plan on Monday, January 5th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 6.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, CEO Todd Mckinnon sold 11,286 shares of the firm’s stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $90.96, for a total transaction of $1,026,574.56. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Brett Tighe sold 10,000 shares of Okta stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $95.07, for a total value of $950,700.00. Following the completion of the transaction, the chief financial officer owned 134,385 shares in the company, valued at $12,775,981.95. This trade represents a 6.93% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 37,245 shares of company stock valued at $3,385,624. Company insiders own 5.68% of the company’s stock.

Institutional Investors Weigh In On Okta

Several institutional investors have recently bought and sold shares of the company. Steward Partners Investment Advisory LLC increased its stake in shares of Okta by 5.3% in the 2nd quarter. Steward Partners Investment Advisory LLC now owns 2,238 shares of the company’s stock worth $224,000 after acquiring an additional 113 shares during the last quarter. Spire Wealth Management grew its holdings in shares of Okta by 30.8% in the fourth quarter. Spire Wealth Management now owns 505 shares of the company’s stock valued at $44,000 after purchasing an additional 119 shares during the period. Allworth Financial LP grew its holdings in shares of Okta by 6.4% in the third quarter. Allworth Financial LP now owns 2,251 shares of the company’s stock valued at $206,000 after purchasing an additional 135 shares during the period. Choreo LLC increased its position in Okta by 2.0% during the third quarter. Choreo LLC now owns 7,239 shares of the company’s stock worth $664,000 after purchasing an additional 140 shares during the last quarter. Finally, Utah Retirement Systems raised its stake in Okta by 0.6% during the fourth quarter. Utah Retirement Systems now owns 28,605 shares of the company’s stock worth $2,473,000 after purchasing an additional 163 shares during the period. 86.64% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Q4 results topped consensus — EPS of $0.90 and revenue of $761M beat estimates; Okta reported improved profitability and a large total contract value that supports durable enterprise demand. Okta Announces Fourth Quarter And Fiscal Year 2026 Financial Results
• Positive Sentiment: Management is pushing an AI-agents growth narrative — Okta says agentic AI is creating new identity/security requirements (and opened visible use cases such as the PGA partnership), which supports upside over the medium term if adoption accelerates. Okta Sees AI Agents Fueling Next Growth Wave
• Neutral Sentiment: Analyst reactions remain mixed-to-positive — several brokers kept Buy/Outperform ratings (Morgan Stanley reiterated a Buy PT $101; Baird stayed constructive), while coverage and price targets vary widely, leaving consensus expectations dispersed. Okta: Attractive AI-Driven Identity Positioning Supports Buy Rating Despite Near-Term Growth Constraints
• Negative Sentiment: Q1 revenue guidance came in below Street expectations ($749M–$753M vs. ~$754.9M consensus), and company forecasts the slowest revenue growth since its IPO — that conservative near-term outlook is the main driver of investor concern. Okta forecasts slowest revenue growth since IPO amid economic uncertainty
• Negative Sentiment: Market reaction: despite the beat, shares dipped on a “muted” outlook and conservative FY27 revenue posture — investors are focused on the near-term revenue cadence rather than longer-term AI opportunities. Okta beats Q4 estimates but shares dip on muted outlook

About Okta

Okta, Inc is a publicly traded provider of identity and access management solutions, headquartered in San Francisco, California. Founded in 2009 by Todd McKinnon and Frederic Kerrest, the company completed its initial public offering in April 2017. Under the leadership of McKinnon as chief executive officer and Kerrest as chief operating officer, Okta has grown into a leading vendor in the cybersecurity space, focusing on secure user authentication, single sign-on and lifecycle management for digital identities.

At the core of Okta’s offering is the Okta Identity Cloud, a suite of cloud-native services that enable organizations to manage user access across web and mobile applications, on-premises systems and APIs.