In recent months, US equity markets have been very volatile. It is markedly higher than the increase in consumer prices in the past 40 years, and the increase in producer prices is higher than the increase in consumer prices in June 2022.
However, the tech-heavy Nasdaq Composite remains stuck in a bear market. Various high-quality tech stocks, including Okta (NASDAQ: OKTA) is now available at historically low price points, making it an attractive investment for retail investors. You can make profitable investments in the stock below for various reasons.
Okta, Inc. (NASDAQ: OKTA) – Introduction
As of today, shares of Okta, the leading cloud-native identity management company, are down 56% for the year. A cyber attack and broader market declines have adversely affected investor sentiment during the first quarter of fiscal 2023 (ending April 30, 2022). The magnitude of the share price correction, however, appears unjustified. Okta raised its full-year fiscal 2023 guidance in the first quarter despite the data breach that might have affected some of its clients. Despite these difficult circumstances, Okta remains confident that most of its customers will stay with it.
Why is NASDAQ: OKTA an excellent stock to buy?
According to its latest Securities & Exchange Commission filing, California Public Employees Retirement System decreased its stake in Okta, Inc. (NASDAQ: OKTA) by 7.2%. California Public Employees Retirement System sold 19,455 shares of the company’s stock during the quarter.
The last time the California Public Employees Retirement System filed an SEC complaint, it owned 0.16% of Okta, worth $37,974,000.
The stakes in OKTA of several other institutional investors have also recently increased or decreased. Deer Management Co LLC’s investment in Okta was valued at about $614,155,000 during the fourth quarter of last year. Norges Bank is believed to have acquired approximately $240,716,000 worth of Okta during the fourth quarter.
Finally, during the 4th quarter, WiL LLC acquired an approximately $80,332,000 position in Okta. The company’s stocks are owned by institutional investors and hedge funds to 76.18%.
Reason to avoid
At the moment, Okta is not profitable. Although it is not making rapid progress, it is moving in the right direction. The company has grown its revenue by over 40% in the past four years.
Since over 95% of the company’s revenue is from subscriptions, the company also has a main revenue base. To total $2.71 billion, Okta’s remaining performance obligations (RPO) grew 43% yearly as a combination of deferred revenues and backlog.
Meanwhile, the current RPO (revenue to be recognized in 12 months) has grown 57% over the last year. So, Okta is well positioned to maintain its robust top-line growth shortly. As an added benefit, Okta generates positive cash flow during a recession.
NASDAQ: OKTA – Technical analysis
The opening price of NASDAQ OKTA on Monday was $98.45. The stock of Okta, Inc. has fluctuated between $77.01 and $276.30 over the past year. With a market cap of $15.53 billion, a P/E ratio of -15.41, and a beta of 1.06, the company has a P/E ratio of 155.41.
A debt-to-equity ratio of 0.40 is calculated by dividing the current ratio by the quick ratio. With a fifty-day moving average price of $92.78 and a 200-day moving average price of $133.38, the stock is currently trading at $92.78.
As of Thursday, June 2, Okta had not yet announced its earnings results for its quarterly period. EPS ($1.36) for the quarter beat consensus estimates by $0.01, beating ($1.37) by $0.01. In terms of return on equity, Okta posted a negative 13.13% and 67.06% negative net margins.
According to the consensus estimate, the company had a revenue of $388.77 million during the quarter. ($0.59) EPS was earned in the same period in the previous year. According to the firm’s last quarter report, revenues were 65.3% higher than last year. EPS for Okta, Inc. is expected to be -5.56 for the current fiscal year, according to research analysts
