Okta's Trading Volume Drops to $281 Million Despite Strong Q4 Results and UBS Price Target Increase

On May 22, 2025, Okta's trading volume reached $281 million, marking a 30.13% decrease from the previous day. The stock price of Okta (OKTA) rose by 1.52%.

UBS has raised its price target for Okta from $120 to $150, while maintaining a Buy rating. This adjustment comes as the company approaches its earnings report for the April quarter, with positive feedback from partners contributing to the optimism. The revised target reflects confidence in Okta's performance and potential growth.

Okta reported strong Q4 results, including record profitability and free cash flow. The company achieved record bookings, surpassing $1 billion in total contract value for the first time. Significant growth was seen in new products, with over 20% of Q4 bookings from innovations like Okta Identity Governance and Identity Threat Protection with Okta AI. The partnership with AWS Marketplace has been particularly successful, with revenue growing over 80% in FY25. Additionally, Okta experienced a multiyear high in sales productivity, with notable success in cross-selling workforce products to existing customers.

Despite these positive developments, Okta faces ongoing macroeconomic challenges and a cautious approach to forward guidance. The company is also dealing with headwinds from seat-based pricing, as customers have become more conservative in their purchasing. Okta is undergoing a headcount reduction to optimize its cost structure, which may impact short-term operations. The company acknowledges the need for continued investment in product innovation and market expansion to maintain growth momentum.