Okta today
(As of 11:21 a.m. ET)
- 52 week range
- $70.56
▼
$114.50
- Target price
- $103.77
Okty NASDAQ: OKTA The share price has suffered since peaking in 2021, but those days are over. The cybersecurity company has gained momentum over the past two years, and Okta’s stock market has normalized after the bubble burst. Today’s takeaway is that the CQ3/FQ2 2025 results triggered a high volume move, signaling support at a critical level, confirming the market bottom and a high probability of it continuing higher and confirming a full reversal. The daily and weekly charts show some resistance to rising prices, but the overall signal is very bullish. It shows support on a pair of moving averages, a golden EMA crossover, convergence and bearish crossovers in technical indicators, and near-record volume.
Okta: Quarter Impact and Raise Impresses Analysts
Okta had a strong quarter, with large customers and government and private businesses contributing to growth. The company reported net revenue of $665 million, up 14% year over year, driven by a 14% increase in subscriptions. Revenue beat MarketBeat’s consensus estimate by 230 basis points and was bolstered by higher earnings, profitable financial results and robust guidance. RPO, an indicator of future growth, rose 19%, with nearly 14% expected to be recognized over the next 12 months.
Okta Stock Forecast Today
$103.77
Growth potential 20.02%Hold
Based on ratings from 31 analysts
| High forecast | US$140.00 |
|---|---|
| Average forecast | $103.77 |
| Low forecast | $75.00 |
Okta Stock Forecast Details
The margin news is more impressive, with gross and operating margins improving year-over-year. The company continues to record GAAP losses, but they have narrowed significantly, allowing the company to turn a GAAP profit soon. Adjusted operating margin, which is important because of cash flow, was increased by 600 basis points to support robust cash flow and free cash flow representing about 23% of revenue.
The most impressive detail of the report is its recommendations. The company forecast fourth-quarter and full-year growth relative to consensus, putting the lower end of its range for revenue and earnings per share well above analysts’ forecasts. Fourth-quarter earnings per share are expected to be more than 500 basis points above consensus estimates, but the company may be cautious in its estimates. Security is a priority for businesses, institutions and organizations around the world and is becoming more of a priority as the pace and severity of attacks increase.
Analysts Praise Okta After Clear Recommendations
Analysts are overwhelmingly bullish in their reaction to the news, showering it with price target increases and at least one hike. The 20 updates tracked by MarketBeat included few confirmed price targets but enough raises to lift the consensus nearly 500 basis points overnight. The revision trend shows high belief that this stock will trade above $100, good for minimal gains of almost 20% from critical support levels. The trend suggests the market will move into the upper range within twelve months, adding another 35-40% to the share price. The takeaway from the conversations is that Okta’s improved execution is delivering results despite economic headwinds, new products are expected to drive growth over the long term, and the growth trajectory is good.
Institutional activity is also supporting Okta’s share price in the fourth quarter. Institutions own more than 85% of the shares and make on-balance sheet purchases every quarter of 2024. Their activity coincides with the market bottom and is supported at the 150-day moving average. A share price above this average indicates that it could go higher in 2025. The critical resistance level is near the $100 mark and could be tested soon. A move above $100 is another bullish signal that could trigger fresh capital inflows. In this scenario, the market could quickly rise to the upper range of analysts.
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