Form 4: Okta Director Jacques Kerrest Sells Shares Under 10b5-1 Trading Plan

Director Jacques Kerrest sold Okta shares worth approximately $287,000 under a pre-arranged Rule 10b5-1 trading plan.

Summary

• On January 21, 2025, Jacques Frederic Kerrest, a director at Okta, Inc., sold 1,936 shares of Class A Common Stock at a weighted average price of $88.5481 and 1,370 shares at a weighted average price of $89.2731.
• The sales were executed under a Rule 10b5-1 trading plan adopted on September 19, 2024.
• Following the transactions, Kerrest directly owns 0 shares of Class A Common Stock.
• Kerrest also holds derivative securities, including options to purchase Class A and B Common Stock, and Restricted Stock Units (RSUs) representing the right to receive Class A Common Stock.
• Kerrest indirectly owns 1,139,387 shares of Class A Common Stock by Trust, 129,376 shares of Class A Common Stock by Trust and 257,668 shares of Class A Common Stock by Trust.

Sentiment

Score: 5

Explanation: Neutral sentiment. The filing simply reports stock sales under a pre-arranged plan. There's no inherent positive or negative signal, but the market's interpretation can vary.

Negatives

• The director's sale of shares, even under a pre-arranged plan, could be perceived negatively by some investors.

Risks

• Further sales by insiders could put downward pressure on the stock price.

Industry Context

Insider sales are a common occurrence, and the use of 10b5-1 plans allows insiders to sell shares without being accused of acting on non-public information. The market will often look at the size and frequency of these sales to gauge insider sentiment.

Comparison to Industry Standards

• Comparing Kerrest's transactions to other directors in similar SaaS companies would provide a better understanding of whether these sales are typical.
• Analyzing the percentage of Kerrest's holdings sold relative to his total stake in Okta would also be informative.
• Comparing the timing of the 10b5-1 plan adoption to other insider sales at Okta could reveal patterns or trends.

Stakeholder Impact

• The stock sale could have a minor negative impact on shareholder sentiment, although the existence of a 10b5-1 plan mitigates this concern.

Key Dates