Does Okta Inc. (OKTA) offer a good opportunity for investors?

Okta Inc. (NASDAQ: OKTA) stock jumped 1.50% on Wednesday to $84.67 against a previous-day closing price of $83.42. With 1.61 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.32 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $85.22 whereas the lowest price it dropped to was $82.54. The 52-week range on OKTA shows that it touched its highest point at $111.35 and its lowest point at $44.12 during that stretch. It currently has a 1-year price target of $93.74. Beta for the stock currently stands at 1.10.

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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 5.38%, but this was up by 21.16% over a month. Three-month performance surged to 15.32% while six-month performance rose 75.34%. The stock gained 1.39% in the past year, while it has gained 23.91% so far this year. A look at the trailing 12-month EPS for OKTA yields -5.17 with Next year EPS estimates of 1.20. For the next quarter, that number is 0.17. This implies an EPS growth rate of 10.00% for this year and 53.01% 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 -31.30%.

Float and Shares Shorts:

At present, 160.06 million OKTA shares are outstanding with a float of 152.81 million shares on hand for trading. On Apr 27, 2023, short shares totaled 4.36 million, which was 2.70% higher than short shares on Mar 30, 2023. In addition to Mr. Todd McKinnon as the firm’s Co-Founder, Chairman & CEO, Mr. Brett Tighe serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 82.77% of OKTA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 42.75% of OKTA, in contrast to 39.38% held by mutual funds. Shares owned by individuals account for 1.86%. As the largest shareholder in OKTA with 9.36% of the stake, The Vanguard Group, Inc. holds 14,416,891 shares worth 14,416,891. A second-largest stockholder of OKTA, Fidelity Management & Research Co, holds 7,859,074 shares, controlling over 5.10% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in OKTA, holding 6,277,347 shares or 4.08% stake. With a 3.09% stake in OKTA, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 4,750,298 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.32% of OKTA stock, is the second-largest Mutual Fund holder. It holds 3,566,220 shares valued at 244.39 million. Fidelity Select Port. – Technolog holds 1.75% of the stake in OKTA, owning 2,696,235 shares worth 184.77 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 Jan 30, 2023, OKTA reported revenue of $414.94M and operating income of -$239.69M. The EBITDA in the recently reported quarter was -$207.93M and diluted EPS was -$1.56.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for OKTA since 0 analysts follow the stock currently. 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 $120.00 and a low target of $64.00, the average target price over the next 12 months is $93.11. Based on these targets, OKTA could surge 41.73% to reach the target high and fall by -24.41% to reach the target low. Reaching the average price target will result in a growth of 9.97% 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.

Summary of Insider Activity:

Insiders traded OKTA stock several times over the past three months with 7 Buys and 7 Sells. In these transactions, 1,611 shares were bought while 649 shares were sold. The number of buy transactions has increased to 46 while that of sell transactions has risen to 38 over the past year. The total number of shares bought during that period was 104,089 while 49,682 shares were sold.

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