Okta (NASDAQ:OKTA) Stock Falls 6.5% – Here’s Why

16 Oct 2026, 16:01 by Tristan Rich · The Markets Daily

Okta, Inc. (NASDAQ:OKTA – Get Free Report) shares dropped 6.5% on Friday. The company traded as low as $196.67 and last traded at $195.00. Approximately 550,703 shares were traded during trading, a decline of 85% from the average daily volume of 3,568,006 shares. The stock had previously closed at $208.52.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the company. Robert W. Baird upped their price target on Okta from $200.00 to $235.00 and gave the company an “outperform” rating in a research report on Friday, September 25th. HC Wainwright started coverage on Okta in a research note on Monday, July 6th. They issued a “buy” rating for the company. Raymond James Financial lifted their target price on shares of Okta from $115.00 to $185.00 and gave the stock an “outperform” rating in a research note on Thursday, August 27th. New Street Research set a $235.00 price target on Okta in a report on Thursday, September 24th. Finally, Royal Bank Of Canada raised their price objective on Okta from $195.00 to $230.00 and gave the stock an “outperform” rating in a research report on Thursday, September 24th. One investment analyst has rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat, Okta has a consensus rating of “Moderate Buy” and a consensus price target of $202.38.

Check Out Our Latest Stock Analysis on OKTA

Okta Stock Performance

The stock’s 50-day moving average is $179.57 and its two-hundred day moving average is $133.60. The stock has a market cap of $32.78 billion, a PE ratio of 113.89, a PEG ratio of 6.59 and a beta of 0.73.

Okta (NASDAQ:OKTA – Get Free Report) last announced its earnings results on Wednesday, August 26th. The company reported $1.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.96 by $0.09. The company had revenue of $805.00 million for the quarter, compared to analyst estimates of $793.00 million. Okta had a return on equity of 4.50% and a net margin of 9.63%. The firm’s quarterly revenue was up 10.6% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.91 earnings per share. Okta has set its FY 2027 guidance at 3.900-3.940 EPS and its Q3 2027 guidance at 0.920-0.940 EPS. Analysts forecast that Okta, Inc. will post 1.92 EPS for the current year.

Insider Buying and Selling

In other news, CEO Todd McKinnon sold 48,822 shares of the stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $193.48, for a total transaction of $9,446,080.56. Following the sale, the chief executive officer owned 44,029 shares of the company’s stock, valued at approximately $8,518,730.92. This represents a 52.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric Kelleher sold 6,395 shares of the firm’s stock in a transaction that occurred on Friday, September 18th. The shares were sold at an average price of $183.58, for a total transaction of $1,173,994.10. Following the completion of the transaction, the insider directly owned 18,668 shares of the company’s stock, valued at approximately $3,427,071.44. The trade was a 25.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 137,766 shares of company stock valued at $23,927,112. Corporate insiders own 4.61% of the company’s stock.

Institutional Investors Weigh In On Okta

A number of large investors have recently modified their holdings of the company. Diversify Wealth Management LLC acquired a new stake in Okta during the first quarter worth approximately $2,077,000. Swiss National Bank boosted its holdings in shares of Okta by 7.7% in the 1st quarter. Swiss National Bank now owns 497,300 shares of the company’s stock valued at $39,142,000 after buying an additional 35,700 shares in the last quarter. Western Financial Corp CA acquired a new position in shares of Okta in the 3rd quarter valued at $1,673,000. Avory & Company LLC acquired a new position in shares of Okta in the 1st quarter valued at $1,593,000. Finally, Fideuram Intesa Sanpaolo Private Banking S.P.A. grew its position in shares of Okta by 6.1% in the 1st quarter. Fideuram Intesa Sanpaolo Private Banking S.P.A. now owns 137,420 shares of the company’s stock valued at $10,816,000 after buying an additional 7,909 shares during the last quarter. 86.64% of the stock is owned by hedge funds and other institutional investors.

About Okta

(Get Free Report)

Okta, Inc is an identity and access management company that helps organizations secure and manage access to applications, systems, devices and digital services. Its platform is designed to support employees, contractors, partners, customers and other users across cloud-based and on-premises environments.