San Francisco-based identity management firm Okta Inc (NASDAQ:OKTA) might be headed for another quarter characterized by positive gains and its stock might be approaching a “buy” point.
Okta has reported gains over the past three quarters and the firm is working towards maintaining the same trend. The security software firm expects to report positive gains for the current quarter which would make it the fourth continuous quarter that the company will have reported gains. The technology industry is constantly evolving and so does the needs of the market. Okta plans to continue making headway by reacting accordingly to market demands.
The stock managed to jump from its 200-day line in the last week of December and even managed to reach its 50-day line. Okta is a 2017 IPO and it is closing in towards profitability but it is not there yet. Earnings growth is important to any company and in Okta’s case, The company’s stock is also quite volatile.
Okta’s annual performance grew by 138.39% and its current 52-week high is $75.49 while its 52-week low is $25.64. This means that the stock’s current performance is closer to the 52-week high. The stock closed the latest trading session on Monday at $66.27, making a 4.94% compared to the stock price on Friday. Also, the company’s stock kicked off the first week of January on an overall bullish trend, thus highlighting positive sentiments from investors.
Volatility and performance
The stock’s volatility over the past one month was 8.00% while the weekly volatility for the first week of January was about 6.21%. The stock’s average True Range (ATR) on Friday was 4.8. The ATR represents the difference in the stock’s high and low in a particular trading session. The ATR is used to demonstrate the stock’s volatility.
The company achieved a $41.43 earnings per share (EPS) average in the past four quarters. There was a 25% EPS surprise. The stock closed Friday’s trading session 7.69% above its 50-day moving average and 7.9% while its 200-day moving average was slightly above 15%.
The firm anticipates a -49.70% earnings per share (EPS) growth in 2019 while its predicted EPS growth for 2020 is 38.90%. It reported an EPS (ttm) of -1.13 and analysts anticipate a 20.00% EPS growth over the next five years.
Investor analysis and company fundamentals
Okta stock’s current consensus rating score is 1.9 on a 1 to 5 scale where 1 represents a strong buy rating and a 5 represents a strong sell. In this case, the analyst rating is a “buy.” As far as the company’s liquidity ratio is concerned, Octa reported that its Total Debt/Equity ratio was 1.09 while its current ratio was 2.7. The company’s return on asset ratio was -17.80% while it reported a -58.20% return on investment ratio.
Okta Also reported a 28.07 booking ratio and a 19.59 price to sales ratio. Institutional investors own roughly 70.70% of the company’s shares.
Judging whether a company will have a successful year ahead might be a daunting task given the many factors that come into play. For example, investors have been quite skeptic about the market as expert anticipate an economic recession in the U.S. External market conditions will, therefore, be vital in determining the direction of Okta’s stock. That being said, the same is also true for internal factors such as management, sales, and overall performance.
Despite the future performance uncertainty, Okta’s performance over the past three quarters has been quite impressive. The company expects to continue with the same momentum this year and as such it anticipates positive gains for the fourth consecutive quarter.