BUZZ-Okta added to S&P 500 index, replacing Kenvue

Update: added background information

November 2 - ** Digital identity verification company Okta (OKTA.O) saw its share price give back gains in premarket trading on Monday, with the latest price at $197.44, down 5.2%, as the company is set to join the S&P 500 index (.SPX) this week.

** S&P Dow Jones Indices announced last Friday evening (link) that OKTA will move from the S&P MidCap 400 Index .IDX to the S&P 500 Index, officially replacing Kenvue KVUE.N in the SPX from Wednesday, November 4.

** Kimberly-Clark KMB.O is acquiring Tylenol manufacturer Kenvue for around $40 billion (link), a deal expected to close soon.

** On Monday, OKTA shares and those of its cybersecurity peers—including CrowdStrike CRWD.O and Zscaler ZS.O—fell further (link), after Fortinet FTNT.O warned of slowing growth last week (link).

** On Monday, Israel-based Check Point Software Technologies CHKP.O shares fell 4% after the cybersecurity firm cut its forecast for 2026 performance (link).

** Stephens analyst Melissa Roberts noted in a client report that passive funds will need to buy around 9.5 million OKTA shares, equivalent to three days of buying pressure.

** As of Friday, San Francisco, California-based OKTA had about 174.8 million shares outstanding with a market capitalization of approximately $36.4 billion.

** Despite the decline, OKTA’s share price is still up about 128% year-to-date.

** According to LSEG data, 36 out of 45 analysts rate the stock as “strong buy” or “buy,” with nine rating it as “hold”; the median target price is $225.

** Correspondingly, medtech company Glaukos (GKOS.N) will be removed from the S&P SmallCap 600 Index (.SPCY) to replace OKTA in the IDX; meanwhile, business-to-business leasing company McGrath RentCorp (MGRC.O) will join the SPCY index on Wednesday.

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