Todd McKinnon, the Chief Executive Officer of Okta, Inc. (NASDAQ:), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, McKinnon disposed of 233,028 shares of Okta’s Class A common stock on December 20, 2024. The shares were sold at prices ranging from $80.8562 to $82.7854 per share, amounting to a total transaction value of approximately $19.18 million. The transaction comes as InvestingPro data shows Okta currently trades below its Fair Value, with 36 analysts recently revising their earnings expectations upward.
Following these transactions, McKinnon no longer holds any shares directly in the company. These transactions were conducted under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a trading plan for selling stocks they own, thus avoiding potential insider trading accusations.
In addition to these sales, McKinnon also exercised options to acquire 373,533 shares of Class B common stock, which were subsequently converted into Class A common stock. However, these transactions did not involve any direct monetary exchange.
Okta, based in San Francisco, is a leading provider of identity and access management solutions. The company continues to be a key player in the cybersecurity space, providing services that help businesses manage and secure user authentication and identity management.
In other recent news, Okta, Inc. has been the subject of multiple analyst upgrades and adjustments following strong quarterly results. KeyBanc Capital Markets upgraded Okta’s stock from Sector Weight to Overweight, setting a new price target of $115.00, reflecting optimism about Okta’s prospects in the security sector. In addition, Baird increased its price target on Okta to $115, identifying it as one of its top small to mid-cap investment ideas.
On the other hand, Bernstein revised its price target for Okta to $124.00, maintaining an Outperform rating despite the reduction. BMO Capital retained a Market Perform rating and a $105.00 price target on Okta, citing a balanced outlook with equal measures of opportunities and risks. Piper Sandler also maintained a Neutral rating on Okta, raising the price target to $90 from $85.
These adjustments come in the wake of Okta’s robust Q3 results, which showcased a 14% increase in revenue and a 13% rise in calculated remaining performance obligations (cRPO) growth. The company’s impressive gross profit margins of 76.12% and robust revenue growth of 16.84% over the last twelve months were also highlighted. In addition, analysts predict profitability for Okta this year, supported by data indicating strengthening performance in the small and medium-sized business (SMB) segment.
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