SAN FRANCISCO—Larissa Schwartz, Chief Legal Officer and Corporate Secretary at Okta, Inc. (NASDAQ:OKTA), recently sold 2,797 shares of the company's Class A Common Stock. The transaction, executed on October 14, was conducted at a price of $77.63 per share, amounting to a total of $217,131. Following this sale, Schwartz retains ownership of 24,916 shares.
This transaction was carried out under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a trading plan for selling stocks they own by establishing a predetermined schedule.
In addition to the sale, Schwartz holds various Restricted Stock Units (RSUs) and Employee Stock Options, which reflect her ongoing stake in the company. The RSUs and options, which vest over time, underline her continued involvement and investment in Okta's future performance.
In other recent news, Okta Inc . reported a 16% year-over-year revenue increase to $646 million, primarily due to a 17% rise in subscription revenue. However, the company's third-quarter calculated remaining performance obligations (cRPO) guidance fell short of projections, leading to a series of adjustments from various analyst firms. TD Cowen and JPMorgan (NYSE:JPM) reiterated their Hold and Neutral ratings respectively, while Deutsche Bank (ETR:DBKGn) lowered its price target for Okta's shares to $115, maintaining a Buy rating.
In contrast, BMO Capital Markets raised its price target to $103, citing Okta's robust growth in remaining performance obligations. Okta is focusing on offering more free plans and product bundles to its customers, seeing significant upsell opportunities with its Identity Governance and Administration (IGA) and Privileged Access Management (PAM) products.
ServiceNow (NYSE:NOW), a leading provider of digital workflow solutions, faces potential business disruption due to a Department of Justice (DOJ) investigation involving one of its partners, Carahsoft. The outcome of this investigation is a matter of interest for investors and stakeholders in the company. These are recent developments in Okta and ServiceNow's business operations and financial performance.
InvestingPro Insights
While Larissa Schwartz's recent stock sale might raise eyebrows, it's important to consider Okta's broader financial picture. According to InvestingPro data, Okta boasts a market capitalization of $12.89 billion and impressive revenue of $2.45 billion over the last twelve months. The company's gross profit margin stands at a robust 75.82%, reflecting strong pricing power in the identity and access management market.
InvestingPro Tips highlight that Okta holds more cash than debt on its balance sheet, indicating a solid financial position. This financial stability could provide reassurance to investors concerned about insider selling. Additionally, 31 analysts have revised their earnings upwards for the upcoming period, suggesting positive sentiment about Okta's near-term prospects.
Despite not being profitable over the last twelve months, analysts predict that Okta will turn profitable this year. This expectation aligns with the company's strong revenue growth of 18.74% over the last twelve months and could explain why insiders like Schwartz maintain significant stakes through RSUs and stock options.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Okta, providing deeper insights into the company's financial health and market position.
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