SAN FRANCISCO—Addison Jonathan James, Chief Revenue Officer of Okta Inc . (NASDAQ:OKTA), reported significant stock sales in a recent filing with the Securities and Exchange Commission. On October 14, James sold a total of 9,850 shares of Okta's Class A Common Stock. The shares were sold in two transactions at weighted average prices ranging from $77.5931 to $78.1867 per share, amounting to a total value of $764,648.
Following these transactions, James retains direct ownership of 14,601 shares of Okta's Class A Common Stock. The sales were conducted under a Rule 10b5-1 trading plan, which allows company insiders to sell a predetermined number of shares at a set time to avoid accusations of insider trading.
In other recent news, Okta Inc. reported a 16% year-over-year revenue increase to $646 million, largely due to a 17% rise in subscription revenue. However, the company's third-quarter calculated remaining performance obligations (cRPO) guidance fell short of projections. Various analyst firms have adjusted their stance on Okta following these results. TD Cowen and JPMorgan have reiterated their Hold and Neutral ratings respectively, while Deutsche Bank lowered its price target to $115 but maintained a Buy rating. Other firms including Piper Sandler, Canaccord Genuity, and BMO Capital Markets have adjusted their price targets to $100, $90, and $103 respectively.
ServiceNow (NYSE:NOW), a digital workflow solutions provider, may face potential business disruption due to a Department of Justice investigation involving its partner, Carahsoft. The outcome of this investigation could influence ServiceNow's future dealings with the government market.
These are recent developments in the business landscape of these companies.
InvestingPro Insights
As Okta's Chief Revenue Officer Addison Jonathan James sells a portion of his holdings, investors may be curious about the company's financial health and future prospects. According to InvestingPro data, Okta currently has a market capitalization of $12.89 billion, with a revenue of $2.45 billion over the last twelve months as of Q2 2023. The company's revenue growth stands at 18.74% for the same period, indicating continued expansion.
InvestingPro Tips highlight that Okta holds more cash than debt on its balance sheet, which suggests a strong financial position. This could provide reassurance to investors concerned about the insider sale. Additionally, the company boasts impressive gross profit margins, with the latest data showing a gross profit margin of 75.82%.
Another positive sign is that 31 analysts have revised their earnings upwards for the upcoming period, potentially indicating optimism about Okta's near-term performance. While the company is not currently profitable, with a negative P/E ratio of -93.41, analysts predict that Okta will become profitable this year.
It's worth noting that Okta does not pay a dividend to shareholders, which is common for growth-oriented technology companies reinvesting in their operations. The stock's current price of $78.65 represents 66.13% of its 52-week high, suggesting potential room for growth according to some investors.
For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Okta, providing a deeper understanding of the company's financial situation and market position.
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