Okta (OKTA,$121.15) gets rating downgrade from Canaccord Genuity, on valuation concerns
Okta got a rating downgrade from analysts at Canaccord Genuity, who think the stock is already fully valued.
Canaccord Genuity analysts lowered their rating on the cloud software company’s stock to hold from buy. They also slashed their price target on the stock to $120 from $145.
Analyst Richard Davis indicated that Okta is "quite expensive”. The stock has rallied more than +100% from its low in December 2018. Year to date, it has climbed more than +80%, but is slightly below its summer high of above $140.
Nevertheless, Davis still views Okta as the leader by a large margin, while mentioning that competition is tightening a bit.
In October, the company revealed various new offerings across security, authentication and more categories. It also announced a partnership with Atlassian, and apparently hopes to garner more big enterprise customers for Okta's product suite.
OKTA sees its Stochastic Oscillator climbs out of oversold territory
On September 09, 2025, the Stochastic Oscillator for OKTA moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 60 instances where the indicator left the oversold zone. In of the 60 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for OKTA just turned positive on August 22, 2025. Looking at past instances where OKTA's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where OKTA advanced for three days, in of 326 cases, the price rose further within the following month. The odds of a continued upward trend are .
OKTA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 10, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on OKTA as a result. In of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 50-day moving average for OKTA moved below the 200-day moving average on August 20, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where OKTA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. OKTA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.373) is normal, around the industry mean (16.693). P/E Ratio (108.226) is within average values for comparable stocks, (154.899). Projected Growth (PEG Ratio) (0.508) is also within normal values, averaging (2.798). OKTA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.024). P/S Ratio (5.981) is also within normal values, averaging (153.457).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. OKTA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
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General Information
a provider of an enterprise-grade identity management services
Industry ComputerCommunications
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