Okta Inc. (NASDAQ: OKTA) stock fell -1.62% on Tuesday to $68.70 against a previous-day closing price of $69.83. With 2.35 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.86 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $72.04 whereas the lowest price it dropped to was $68.53. The 52-week range on OKTA shows that it touched its highest point at $203.79 and its lowest point at $44.12 during that stretch. It currently has a 1-year price target of $79.34. Beta for the stock currently stands at 1.02.
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 down-trending over the past week, with a drop of -3.40%, but this was up by 1.12% over a month. Three-month performance surged to 24.89% while six-month performance fell -30.70%. The stock lost -63.51% in the past year, while it has gained 0.54% so far this year. A look at the trailing 12-month EPS for OKTA yields -5.77 with Next year EPS estimates of 0.30. For the next quarter, that number is 0.10. This implies an EPS growth rate of -173.70% for this year and 211.10% 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, 158.71 million OKTA shares are outstanding with a float of 151.76 million shares on hand for trading. On Oct 13, 2022, short shares totaled 7.24 million, which was 4.56% higher than short shares on Sep 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 81.53% of OKTA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 40.29% of OKTA, in contrast to 37.21% held by mutual funds. Shares owned by individuals account for 1.85%. As the largest shareholder in OKTA with 9.01% of the stake, The Vanguard Group, Inc. holds 13,769,294 shares worth 13,769,294. A second-largest stockholder of OKTA, Fidelity Management & Research Co, holds 8,212,004 shares, controlling over 5.38% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in OKTA, holding 6,111,781 shares or 4.00% stake. With a 2.87% stake in OKTA, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 4,380,062 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.20% of OKTA stock, is the second-largest Mutual Fund holder. It holds 3,354,589 shares valued at 229.22 million. First Trust NASDAQ Cybersecurity holds 1.72% of the stake in OKTA, owning 2,626,863 shares worth 179.49 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for OKTA since 38 analysts follow the stock currently. There are 20 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 13 believe that the stock is worth HOLDING, 3 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 $110.00 and a low target of $45.00, the average target price over the next 12 months is $78.63. Based on these targets, OKTA could surge 60.12% to reach the target high and fall by -34.5% to reach the target low. Reaching the average price target will result in a growth of 14.45% 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 -$0.24 being high and -$0.36 being low. For OKTA, this leads to a yearly average estimate of -$0.27. The surprise factor in the prior quarter was $0.21. The average estimate for the next quarter is thus $0.09.
Summary of Insider Activity:
Insiders traded OKTA stock several times over the past three months with 6 Buys and 6 Sells. In these transactions, 10,999 shares were bought while 5,526 shares were sold. The number of buy transactions has increased to 65 while that of sell transactions has risen to 56 over the past year. The total number of shares bought during that period was 143,950 while 65,630 shares were sold.