SAN FRANCISCO—Jacques Frederic Kerrest, a director at Okta, Inc. (NASDAQ:OKTA), sold a significant portion of his holdings in the company, according to a recent SEC filing. The transactions, which took place on December 2 and 3, involved the sale of 169,335 shares of Okta's Class A Common Stock, with prices ranging from $80.4117 to $81.204 per share. The total value of these sales amounted to approximately $13.65 million. The $14.63 billion market cap company maintains impressive gross profit margins of 76.12% and holds more cash than debt on its balance sheet, according to InvestingPro data.
Kerrest's transactions were conducted as part of a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks. Following these transactions, Kerrest retains a direct ownership of 2,263 shares in Okta. The sales represent a significant divestment for Kerrest, who had previously exercised stock options to acquire shares. InvestingPro analysis indicates the stock generally trades with low price volatility, with 6 additional exclusive insights available to subscribers.
Okta, a leading provider of identity management solutions, has seen its stock fluctuate in recent months amid broader market trends affecting the technology sector. Investors will likely be watching closely to see how these insider transactions impact the company's stock performance in the coming weeks. According to InvestingPro's Fair Value analysis, the stock currently appears slightly undervalued, with comprehensive research reports available for deeper insights into the company's financial health and growth prospects.
In other recent news, Okta, Inc. has been the focus of various investment firms following its strong financial performance. The identity management company reported a 14% increase in revenue and a 13% rise in calculated remaining performance obligations (cRPO) growth. Despite this, Okta's preliminary revenue growth guidance for fiscal year 2026 is set at just 7% year-over-year.
Piper Sandler maintained a Neutral rating on Okta while raising the price target to $90. Similarly, Citi also held a Neutral rating but increased its price target to $95. BMO (TSX:BMO) Capital Markets raised its price target for Okta to $105, maintaining a Market Perform rating. KeyBanc expressed a positive outlook on Okta's potential role as a consolidator of identity services, keeping a Sector Weight. Needham increased its stock price target for Okta to $115, maintaining a Buy rating.
These adjustments come in the wake of Okta's recent earnings report, which showcased a 14% increase in revenue and a 13% rise in calculated remaining performance obligations (cRPO) growth. Despite this positive performance, Okta's preliminary revenue growth guidance for fiscal year 2026 is set at just 7% year-over-year, falling short of the Street's forecast of approximately 10%. These are recent developments that investors should consider when assessing the company's performance.
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