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.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Aroon Indicator for OKTA shows an upward move is likely
OKTA's Aroon Indicator triggered a bullish signal on October 06, 2026. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 150 similar instances where the Aroon Indicator showed a similar pattern. In 122 of the 150 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at 81%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 14, 2026. You may want to consider a long position or call options on OKTA as a result. In 74 of 100 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 74%.
Following a +3.40% 3-day Advance, the price is estimated to grow further. Considering data from situations where OKTA advanced for three days, in 220 of 302 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 74%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 32 (best 1 - 100 worst), pointing to outstanding 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 Price Growth Rating for this company is 34 (best 1 - 100 worst), indicating steady price growth. OKTA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 79 (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 (5.068) is normal, around the industry mean (17.861). P/E Ratio (121.795) is within average values for comparable stocks, (159.605). Projected Growth (PEG Ratio) (1.671) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.004) among similar stocks. P/S Ratio (10.881) is also within normal values, averaging (104.490).
The Tickeron SMR rating for this company is 84 (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 Profit vs. Risk Rating rating for this company is 100 (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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