Okta (NASDAQ:OKTA), a cybersecurity company that manages identity and access management, slid in pre-market trading after the company told its clients in a letter that hackers stole all the data from the users of its customer support system. This is after a data breach that occurred in October, where hackers secured access to the company’s support system.
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Okta warned that these customers could be vulnerable to an increased risk of hackers’ attacks or phishing attempts. An Okta spokesperson told CNBC that “customers in government or Department of Defense environments were not impacted by the breach.”
The spokesperson added, “We are working with a digital forensics firm to support our investigation and we will be sharing the report with customers upon completion. In addition, we will also notify individuals that have had their information downloaded.”
Okta is expected to report its calendar third-quarter earnings today after market close.
Is OKTA a Good Investment?
Analysts remain cautiously optimistic about OKTA stock with a Moderate Buy consensus rating based on 15 Buys, 12 Holds, and one Sell. Even as Okta stock has surged by more than 40% in the past year, the average Okta price target of $89.48 implies an upside potential of 23.2% at current levels.
