Shares of Okta (NASDAQ:OKTA), the company that offers services to manage and protect digital identities, fell 10.4% in June, according to data provided by S&P Global Market Intelligence.
The biggest price drop came early in the month and was probably the result of an analyst downgrading Okta's shares.
Image source: Getty Images.
So whatNeedham & Company lowered its buy rating for Okta's shares to a hold, and also reduced its price target from about $47 to $38 at the beginning of June, which likely led to some negative investor sentiment around that time.�
Image source:�YCharts.
In what should be an example of being cautious about following the whims of analysts, Needham proceeded to upgrade�Okta's stock back to a buy at the end of the month.
Now whatWhat's even more odd about the timing of the drop is that at the beginning of June,�Okta reported strong sales growth for its first quarter.
Sales grew by 60% from the year-ago quarter to $83.6 million, and the company's net loss of $26 million was a slight improvement from its $27.7 million loss in the first quarter of 2018.
The company also issued strong guidance for the second quarter, and management said that revenue will be between $84 million and $85 million. That represents about 39% to 41% growth year over year.
Okta's shares have climbed back up about 9% so far in July, which may mean that investors are starting to realize that Okta's first-quarter results warranted a much more positive response than they initially received.
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