The Case for and Against Okta, Inc. (OKTA)

Okta, Inc. (OKTA) is an interesting player in the Technology space, with a focus on Technical & System Software. The stock has been active on the tape, currently trading at $52.94, up from yesterday’s close by 2.58%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Okta, Inc. (OKTA) currently trades with a market capitalization of $5.95 Billion. That value represents a market adjusting for revenues that have been growing by 59.81 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$18.84 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.19 on a per share basis this quarter. Perhaps, that suggests something about why 0.42% of the outstanding share supply is held by institutional investors.



Technical Analysis

It’s important to check the technicals to get a sense of how OKTA has been acting. Looking at the stock’s movement on the chart, Okta, Inc. recorded a 52-week high of $61.00. It is now trading 8.06% off that level. The stock is trading $46.65 its 50-day moving average by -6.29%. The stock carved out a 52-week low down at $21.52.

In recent action, Okta, Inc. (OKTA) has made a move of +9.95% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.11, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 18.62% with $31.84 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of OKTA.

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