Okta Stock Buy Hold or Sell Recommendation

OKTA
 Stock
  

USD 61.89  0.05  0.08%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Okta Inc is 'Cautious Hold'. Macroaxis provides Okta buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Okta positions. The advice algorithm takes into account all of Okta's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Okta's buy-and-hold perspective. Please check Okta Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Okta and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Okta Inc.

Execute Okta Buy or Sell Advice

The Okta recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Okta Inc. Macroaxis does not own or have any residual interests in Okta Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Okta's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell OktaBuy Okta
Cautious Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Inapplicable
Details

Reporting Quality (M-Score)

Details
For the selected time horizon Okta Inc has a Mean Deviation of 3.36, Semi Deviation of 3.84, Standard Deviation of 5.07, Variance of 25.67, Downside Variance of 15.7 and Semi Variance of 14.77
Macroaxis provides unbiased recommendation on Okta Inc that should be used to complement current analysts and expert consensus on Okta Inc. Our trade recommendations engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Okta is not overpriced, please check all Okta Inc fundamentals, including its revenue, current ratio, beta, as well as the relationship between the cash and equivalents and earnings per share . Given that Okta Inc has a price to earning of (7.58) X, we recommend you to check out Okta Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Okta Trading Alerts and Improvement Suggestions

Okta Inc has very high historical volatility over the last 90 days
The company reported the previous year's revenue of 1.3 B. Net Loss for the year was (848.41 M) with profit before overhead, payroll, taxes, and interest of 905.68 M.
Okta Inc has a poor financial position based on the latest SEC disclosures
Over 82.0% of the company shares are owned by institutional investors
Latest headline from news.google.com: Why Amazon, Okta, and Roku Stocks All Slumped Monday - Nasdaq

Okta Returns Distribution Density

The distribution of Okta's historical returns is an attempt to chart the uncertainty of Okta's future price movements. The chart of the probability distribution of Okta stock daily returns describes the distribution of returns around its average expected value. We use Okta Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Okta returns is essential to provide solid investment advice for Okta.
Mean Return0.05Value At Risk-6.14
Potential Upside6.58Standard Deviation5.07
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Okta historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Okta Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(11.74 M)(11.98 M)(21.92 M)(19.33 M)(17.4 M)(18.77 M)
Depreciation Amortization and Accretion4.57 M7 M8 M17.82 M20.49 M22.1 M
Net Cash Flow or Change in Cash and Cash Equivalents(34.8 M)112.95 M174.98 M220.74 M253.85 M273.89 M
Net Cash Flow from Financing237.41 M357.76 M853.38 M1.09 B89.07 M91.41 M
Net Cash Flow from Investing(99.7 M)(197.32 M)(688.04 M)(1.31 B)(366.81 M)(395.77 M)
Net Cash Flow Investment Acquisitions and Disposals18.71 M(87.72 M)(159.77 M)(615.84 M)(554.26 M)(568.84 M)
Net Cash Flow from Operations(25.24 M)15.17 M55.6 M127.96 M104.12 M112.34 M
Effect of Exchange Rate Changes on Cash(120 K)487 K(632 K)(209 K)(188.1 K)(193.05 K)
Share Based Compensation17.13 M49.86 M76.32 M126.62 M145.62 M157.11 M

Okta Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Okta or IT Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Okta's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Okta stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.05
β
Beta against NYSE Composite1.50
σ
Overall volatility
5.12
Ir
Information ratio -0.0044

Okta Volatility Alert

Okta Inc shows above-average downside volatility for the selected time horizon. We advise investors to inspect Okta Inc further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Okta future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Okta's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Okta's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Okta Implied Volatility

Okta's implied volatility exposes the market's sentiment of Okta Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Okta's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Okta stock will not fluctuate a lot when Okta's options are near their expiration.

Okta Fundamentals Vs Peers

Comparing Okta's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Okta's direct or indirect competition across all of the common fundamentals between Okta and the related equities. This way, we can detect undervalued stocks with similar characteristics as Okta or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Okta's fundamental indicators could also be used in its relative valuation, which is a method of valuing Okta by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Okta to competition
FundamentalsOktaPeer Average
Return On Equity(0.16) %(0.31) %
Return On Asset(0.06) %(0.14) %
Profit Margin(0.52) %(1.27) %
Operating Margin(0.46) %(5.51) %
Current Valuation10.3 B16.62 B
Shares Outstanding152.76 M571.82 M
Shares Owned by Insiders0.60 %10.09 %
Shares Owned by Institutions81.90 %39.21 %
Number of Shares Shorted8.69 M4.71 M
Price to Earning(7.58) X28.72 X
Price to Book1.93 X9.51 X
Price to Sales5.63 X11.42 X
Revenue1.3 B9.43 B
Gross Profit905.68 M27.38 B
EBITDA(649.9 M)3.9 B
Net Income(848.41 M)570.98 M
Cash and Equivalents2.48 B2.7 B
Cash per Share15.59 X5.01 X
Total Debt1.82 B5.32 B
Debt to Equity0.44 %48.70 %
Current Ratio2.38 X2.16 X
Book Value Per Share33.77 X1.93 K
Cash Flow from Operations104.12 M971.22 M
Short Ratio2.25 X4.00 X
Earnings Per Share(6.37) X3.12 X
Price to Earnings To Growth10.21 X4.89 X
Target Price79.14
Number of Employees6.04 K18.84 K
Beta1.17-0.15
Market Capitalization9.75 B19.03 B
Total Asset9.21 B29.47 B
Retained Earnings(719.57 M)9.33 B
Working Capital61.15 M1.48 B
   Okta Inc exotic insider transaction detected [view details]

About Okta Buy or Sell Advice

When is the right time to buy or sell Okta Inc? Buying financial instruments such as Okta Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Accounts Payable3.84 M8.56 M20.2 M21.8 M
Receivables130.12 M194.82 M397.51 M428.89 M

Use Investing Ideas to Build Portfolios

In addition to having Okta in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Raw Materials Thematic Idea Now

Raw Materials
Raw Materials Theme
Companies that are involved with the development and processing of raw materials such as silver or forestry. The Raw Materials theme has 11 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Raw Materials Theme or any other thematic opportunities.
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Please check Okta Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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Is Okta's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Okta. If investors know Okta will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Okta listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
9.8 B
Quarterly Revenue Growth YOY
0.372
Return On Assets
(0.06) 
Return On Equity
(0.16) 
The market value of Okta Inc is measured differently than its book value, which is the value of Okta that is recorded on the company's balance sheet. Investors also form their own opinion of Okta's value that differs from its market value or its book value, called intrinsic value, which is Okta's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Okta's market value can be influenced by many factors that don't directly affect Okta's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Okta's value and its price as these two are different measures arrived at by different means. Investors typically determine Okta value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Okta's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.