Blue Grotto Capital Expands Stake in Okta, Acquires 112,801 Shares

Blue Grotto Capital LLC has significantly increased its investment in Okta, Inc. (NASDAQ:OKTA) by acquiring an additional 112,801 shares in the second quarter of 2023, raising its total holdings to 252,801 shares. This marks an impressive increase of 80.6% in their position, according to a recent filing with the Securities and Exchange Commission. Following this acquisition, Okta represents approximately 3.1% of Blue Grotto Capital’s total portfolio, making it the firm’s 13th largest investment, valued at about $25.3 million.

Several other institutional investors have also adjusted their stakes in Okta during the same period. For instance, Adage Capital Partners GP LLC increased its holdings by a remarkable 300%, acquiring an additional 75,000 shares to reach a total of 100,000 shares, worth approximately $10.0 million. Ameriprise Financial Inc. also lifted its position by 1.1%, bringing its total to 2,037,640 shares, valued at around $203.7 million.

AQR Capital Management LLC expanded its stake in Okta by 13.9%, now owning 1,175,676 shares worth $117.1 million. Meanwhile, Alamea Verwaltungs GmbH boosted its holdings by 34.9%, acquiring 2,866 shares valued at $287,000. The California State Teachers Retirement System increased its stake by 0.5%, owning 261,770 shares valued at approximately $26.2 million. Collectively, institutional investors now own 86.64% of Okta’s stock.

Analyst Ratings and Stock Performance

Okta has been the focus of numerous analyst evaluations recently. Stifel Nicolaus revised its price target for Okta shares from $130.00 to $121.00, maintaining a “buy” rating. DA Davidson also reaffirmed a “buy” rating, setting a price target of $140.00. Conversely, BTIG Research lowered its target from $142.00 to $116.00, while Needham & Company LLC reiterated a “buy” rating with a price target of $110.00. Citigroup adjusted its target from $110.00 to $100.00, reflecting a “neutral” stance.

According to MarketBeat.com, a total of twenty-three investment analysts have rated Okta with a “buy” rating, fourteen have issued a “hold” rating, and two analysts have recommended a “sell.” The consensus rating stands at “Moderate Buy,” with an average target price of $112.91.

As of the last trading session, Okta’s stock opened at $90.18. The company has experienced a 52-week low of $75.05 and a 52-week high of $127.57. The firm has a market capitalization of $15.79 billion, with a P/E ratio of 82.73 and a price-to-earnings-growth ratio of 4.27.

Recent Earnings and Insider Activity

Okta’s latest earnings report, released on December 2, 2023, showcased a positive performance. The company reported earnings per share (EPS) of $0.82, surpassing analysts’ expectations of $0.76 by $0.06. The firm generated revenue of $742 million for the quarter, exceeding the consensus estimate of $730.23 million. Year-over-year, Okta’s revenue increased by 11.6%.

Looking ahead, Okta has provided guidance for fiscal year 2026, forecasting an EPS of between $3.430 and $3.440. For the fourth quarter of 2026, the anticipated EPS is between $0.840 and $0.850. Analysts expect the company to post an EPS of $0.42 for the current fiscal year.

In terms of insider trading, Chief Revenue Officer Jonathan James Addison sold 6,091 shares of Okta stock on September 18, 2023, at an average price of $92.61, totaling around $564,087.51. Following the sale, Addison retained 7,067 shares valued at approximately $654,474.87. Additionally, insider Larissa Schwartz sold 1,318 shares on December 5, 2023, for roughly $112,965.78. This sale represented a 3.61% decrease in her holdings.

Overall, insiders have sold 66,293 shares valued at approximately $6.1 million in the past 90 days, with insiders currently owning 5.68% of the company’s stock.

Okta, Inc. operates as a prominent identity management partner, providing a range of products and services to manage and secure identities, including Single Sign-On and Adaptive Multi-Factor Authentication, among others.