Shares of identity management company Okta $(OKTA)$ jumped 3.3% in the morning session after an analyst at Truist upgraded the stock to 'Buy' from 'Hold'.
The investment firm raised its price target on the identity security company to $125 from $100, citing a potential inflection point for the business. Truist analysts noted that pressures from seat count and changes in the company's sales approach are expected to ease in the second half of fiscal 2026. The upgrade, which occurred ahead of Okta's second-quarter earnings report highlighted strengthening demand for Okta's all-in-one identity platform. This platform includes services like identity governance and administration $(IGA)$ and privileged access management $(PAM)$, which are seeing growing traction among customers.
After the initial pop the shares cooled down to $92.74, up 0.8% from previous close.
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Okta’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 3.1% on the news that on positive sentiment ahead of its upcoming second-quarter earnings report and a broader market rally. The identity management company is scheduled to release its fiscal second-quarter results on August 26. The stock's rise was further supported by a market-wide upswing after Federal Reserve Chair Jerome Powell's comments suggested potential interest rate cuts, which lifted investor sentiment across all sectors.
Okta is up 17.6% since the beginning of the year, but at $92.74 per share, it is still trading 27.2% below its 52-week high of $127.30 from May 2025. Investors who bought $1,000 worth of Okta’s shares 5 years ago would now be looking at an investment worth $442.59.
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