(VIANEWS) – At 11:29 EST Thursday morning, Okta (NASDAQ: OKTA) experienced an impressive growth spurt, rising by 12.71% to EUR82.92 at 11:29 EST – this follows an upward trend over four consecutive trading sessions that has seen it gain value and the NASDAQ index trend upwards with 0.41% gain at EUR14,076.18, also experiencing growth with Okta’s last closing price being EUR73.57 representing 22.38% decline since reaching its 52-week high of EUR94.78 in May 2016.
About Okta
Okta is a provider of identity solutions to a range of organizations – enterprises, SMBs, universities, non-profits and government agencies alike. The company provides an array of products and services designed to manage and secure identities, including Universal Directory, Single Sign-On, Adaptive Multi-Factor Authentication, Lifecycle Management, API Access Management Gateway Access Gateway Advanced Server Access Okta Identity Governance. Okta offers additional solutions such as Universal Login, Attack Protection, Passwordless Authentication, Machine to Machine Communication, Private Cloud Platforms, Actions and Extensibility and Enterprise Connections. Products are sold directly to customers through its sales force and channel partners. Founded in 2009 and based out of San Francisco California.
Yearly Analysis
Okta’s stock is currently trading at EUR82.92, which is significantly below its 52-week high of EUR94.78 but higher than its 52-week low of EUR44.12. This indicates that Okta has experienced considerable volatility over the past year but investors who purchased shares during its 52-week low have seen substantial returns in value appreciation.
Okta is projected to experience strong earnings growth with 17.6% sales growth this year and 17.9% next year, signifying their strong performance and future projections.
Okta’s EBITDA stands at -125.43, suggesting it is currently operating at a loss and this should cause some investors to worry as a company that cannot sustain long-term profitability may struggle to support growth.
At present, Okta’s stock appears to be an investment with high risk and potential rewards. While its strong sales growth rates indicate potential for future expansion, investors should carefully consider its negative EBITDA and any associated risks before investing.
Technical Analysis
Okta, a premier provider of identity and access management solutions, has seen its stock price increase dramatically in the last month. Their shares currently trade for EUR85.00 – well above their 50-day moving average of EUR71.47 and 200-day moving average of EUR72.07. This trend can be attributed to Okta’s strong financial performance as well as positive market sentiment.
Okta has seen both an increase in its stock price and in its trading volume. Today’s reported volume of 6,434,850 is 158% higher than its usual volume of 2,487,370; this indicates that investors have taken notice of Okta and are bullish on its prospects.
Okta’s stock price has experienced considerable volatility over the last several weeks and months. Their current intraday variation average for last week, month, and quarter has been positive 0.77%; negative 0.21%; and positive 1.92% respectively; with its highest amplitude being 1.02% during last week; 1.71% during month; and 1.92% during quarter.
According to the stochastic oscillator, which serves as an effective gauge of overbought and oversold conditions, Okta’s stock appears to be oversold (=20), signalling potential undervaluation at current prices and offering investors an opportunity to purchase at lower costs.
Overall, Okta’s stock price is currently trading above its moving averages and trading volumes have seen a marked increase. While some fluctuations exist within its trading volumes, the stochastic oscillator indicates that Okta may have experienced oversale, providing investors with potential buying opportunities.
Quarter Analysis
Okta has shown significant growth in both sales and revenue over time. Their 18.3% sales growth during this quarter indicates they are doing an effective job of bringing new business in, increasing customer acquisition, as well as maintaining and expanding existing customer bases. Furthermore, Okta experienced year-on-year revenue growth of 24.8% year over year over twelve months which indicates they are also doing an exceptional job at keeping existing customer bases satisfied and growing them further.
Okta has enjoyed impressive revenue growth of 1.96B over its lifetime. This figure may pique investor interest as it indicates continued success and profitability of their operations.
As any company matures and becomes more competitive, its growth rates may decline over time. Thus, potential investors should also carefully consider other aspects such as profitability, market position and potential growth opportunities before making their investment decision.
Okta’s strong sales and revenue growth may appeal to investors, but they should also take other considerations into account before making their decision.
Equity Analysis
According to available data, Okta has a negative trailing twelve months EPS of EUR-4.32 which indicates it may not currently be profitable and thus may not make for an appropriate investment when seeking dividend returns.
Return on Equity (ROE) for the 12 trailing months was negative -12.56%. A negative ROE indicates that profits are not being generated relative to shareholder’s equity – an indicator of financial health for any company.
Investors should exercise extreme caution when considering investing in companies with negative EPS and ROE figures, such as Okta. Wait until their earnings start increasing or their financial health has improved before making a decision to invest in Okta.
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