Okta, Inc. (OKTA) Price Daily Analysis: OKTA Bullish Above This Level

Okta, Inc. (NASDAQ:OKTA) grew as high as $69.85 on Thursday before closing at $66.95. The 10.39 percent rally pushed its market cap to $7.05B. The shares went down as low as $57.65 before recovering. Trading activity significantly improved as the volume at ready counter increased to 7,892,261 shares versus 2,494,655 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,063,064 shares. The stock is now 168.55% above against its bear-market low of $24.93 on December 19, 2017. It has retreated -12.76% since it’s 52-week high of $75.49 reached in September. Now the market price is up 136.07% on the year and up 161.42% YTD.

OKTA’s 50 day simple moving average (SMA 50) price is $59.04 and its 200-day simple moving average (SMA 200) price is $52.73. The company’s stock currently has a total float of 95M shares. Its weekly volatility is hovering around 9.68% and felt 8.23% volatility in price over a month. On the upside, the share price will test short term resistance at around $71.98. On a downside, the stock is likely to find some support, which begins at $59.78. The failure to get near-term support could push it to $52.62.

Separately, it has been reported that multiple insider activity took place at Okta, Inc. (OKTA). CFO Losch William E sold 20,000 shares for $2,500 in transaction occurred on 2018/10/22. After making this transaction, the CFO owns a direct stake of 1,138,400 shares, worth $167,375, as per the last closing price. On 2018/09/24 Losch William E, CFO at OKTA, dumped 15,000 shares at an average price of $68.67 per share. The selling total is valued at $167,375.

Director, Kourey Michael R had divested 17,500 shares through a trade on 2018/09/17. Following this activity, the insider holds 1,224,475 shares. Wall Street’s most bullish Okta, Inc. (NASDAQ:OKTA) analysts are predicting the share price to blow past $88 per share during the next 12 months. The current median share price forecast by them is $75, suggesting that the stock could increase 12.02% in that time frame. The average price target of $75.69 calls for a nearly 13.05% increase in the stock price.

It had seen a new analyst call from Berenberg, which initiated the stock at Buy on November 29. Analysts at Robert W. Baird, started covering the stock on October 18 with a Neutral rating. Brokerage firm Oppenheimer, looks cautious as they stick to prior recommendation of Outperform, in a call on September 07. However, they did change the target price from $60 to $80. Needham, reiterated their call for Buy, on September 07. On the other hand, they had set new target price to $75 versus $58.

Also, it is trading at rather expensive levels at just over 29.11x price/book and 21.74x price/sales. Compared to others, Okta, Inc. is in a different league with regards to profitability, having net margins of -38.1%. To put some perspective around this, the industry’s average net margin is 9.11%. OKTA’s ROE is -58.1%, which is also considerably better than the industry’s ROE of -122.57%. It’s also very liquid in the near term, with a current ratio of 2.9. The stock has a debt/capital of 1.08.

OKTA last reported earnings on December 05, 2018 when it released Jul-18 results that exceeded expectations. The company raked in -$0.15 per share, -99.33% change on the same period last year. That was better than consensus for -$0.19. Revenue for the recent quarter stood at $94.59 million, up 55% on last year and above the $84.82 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $70 million to $77.3 million, which should be compared with $0 generated last year.