Okta Inc. (NASDAQ: OKTA) stock fell -0.40% on Friday to $104.07 against a previous-day closing price of $104.49. With 1.19 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.14 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $105.42 whereas the lowest price it dropped to was $100.54. The 52-week range on OKTA shows that it touched its highest point at $276.30 and its lowest point at $77.01 during that stretch. It currently has a 1-year price target of $153.19. Beta for the stock currently stands at 1.05.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of OKTA was up-trending over the past week, with a rise of 5.76%, but this was up by 2.70% over a month. Three-month performance dropped to -13.64% while six-month performance fell -45.58%. The stock lost -57.93% in the past year, while it has lost -53.58% so far this year. A look at the trailing 12-month EPS for OKTA yields -6.38 with Next year EPS estimates of -0.59. For the next quarter, that number is -0.31. This implies an EPS growth rate of -173.70% for this year and 57.60% for next year. EPS is expected to grow by 25.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -7.80%.
Float and Shares Shorts:
At present, 155.88 million OKTA shares are outstanding with a float of 149.84 million shares on hand for trading. On Jul 14, 2022, short shares totaled 7.02 million, which was 4.45% higher than short shares on Jun 14, 2022. In addition to Mr. Todd McKinnon as the firm’s Co-Founder, Chairman & CEO, Mr. Jacques Frederic Kerrest serves as its Co-Founder, Exec. Vice Chairperson & COO.
Through their ownership of 82.87% of OKTA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 48.90% of OKTA, in contrast to 30.32% held by mutual funds. Shares owned by individuals account for 1.86%. As the largest shareholder in OKTA with 9.18% of the stake, T. Rowe Price Associates, Inc. holds 13,840,810 shares worth 13,840,810. A second-largest stockholder of OKTA, The Vanguard Group, Inc., holds 13,221,200 shares, controlling over 8.77% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in OKTA, holding 5,798,930 shares or 3.85% stake. With a 5.79% stake in OKTA, the T Rowe Price New Horizons Fund is the largest stakeholder. A total of 8,729,932 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.95% of OKTA stock, is the second-largest Mutual Fund holder. It holds 4,444,346 shares valued at 401.77 million. Vanguard Mid Cap Index Fund holds 2.30% of the stake in OKTA, owning 3,470,448 shares worth 313.73 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Apr 29, 2022, OKTA reported revenue of $414.94M and operating income of -$239.69M. Over the past year, revenue came in at $1.46B while operating income stood at -$916.11M. It generated -$242.71M net income for the quarter, which came to -$981.89M over the last twelve months. The EBITDA in the recently reported quarter was -$207.93M and diluted EPS was -$1.56. EBITDA for the full year was -$784.46M.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for OKTA since 29 analysts follow the stock currently. There are 22 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With OKTA analysts setting a high price target of $174.00 and a low target of $94.00, the average target price over the next 12 months is $141.32. Based on these targets, OKTA could surge 67.2% to reach the target high and fall by -9.68% to reach the target low. Reaching the average price target will result in a growth of 35.79% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. OKTA will report FY 2023 earnings on 03/02/2023. Analysts have provided yearly estimates in a range of -$0.88 being high and -$1.26 being low. For OKTA, this leads to a yearly average estimate of -$1.12. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Okta Inc. surprised analysts by $0.07 when it reported -$0.27 EPS against a consensus estimate of -$0.34. The surprise factor in the prior quarter was $0.06. Based on analyst estimates, the high estimate for the next quarter is -$0.26 and the low estimate is -$0.35. The average estimate for the next quarter is thus -$0.31.
Summary of Insider Activity:
Insiders traded OKTA stock several times over the past three months with 30 Buys and 20 Sells. In these transactions, 32,580 shares were bought while 12,337 shares were sold. The number of buy transactions has increased to 95 while that of sell transactions has risen to 115 over the past year. The total number of shares bought during that period was 204,438 while 122,177 shares were sold.