Why Okta Stock Is Rising Today

Okta Inc OKTA shares are trading higher Friday after the company reported better-than-expected financial results and issued guidance above analyst estimates.

Okta said fiscal first-quarter revenue increased 65% year-over-year to $415 million, which beat the estimate of $388.99 million, according to data from Benzinga Pro. The company reported a quarterly earnings loss of 27 cents per share, which beat the estimate for a loss of 34 cents per share.

Okta expects fiscal second-quarter revenue to be between $428 million and $430 million versus the estimate of $422.25 million. The company said it expects to lose 31 to 32 cents per share in the second quarter. 

Full-year revenue is expected to be between $1.805 billion and $1.815 billion, representing growth of 39% to 40% year-over-year.

Analyst Assessment:

• Piper Sandler analyst Rob Owens maintained Okta with an Overweight rating and lowered the price target from $270 to $150.
• JMP Securities analyst Trevor Walsh maintained Okta with a Market Outperform rating and lowered the price target from $260 to $165.
• Deutsche Bank analyst Patrick Colville maintained Okta with a Buy rating and lowered the price target from $195 to $130.
• Wells Fargo analyst Andrew Nowinski maintained Okta with an Overweight rating and raised the price target from $130 to $145.
• Stifel analyst Adam Borg maintained Okta with a Hold rating and lowered the price target from $195 to $115.

See Also: Morning Brief: Top Financial Stories Dominating on Friday, June 3

OKTA Price Action: Okta has traded between $77.01 and $276.30 over a 52-week period.

The stock was up 14.3% at $107.06 at time of publication.

Photo: Aaron Parecki from Flickr.