Below Expected Outlook Pulled Down Okta (OKTA) in Q2

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Mid Cap Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Mid-cap stocks rebounded in the second quarter, delivering a strong recovery. The Russell Midcap Growth Index (up 18.20%) outperformed the Russell Midcap® Value Index (up 5.34%) in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Carillon Eagle Mid Cap Growth Fund highlighted stocks such as Okta, Inc. (NASDAQ:OKTA). Okta, Inc. (NASDAQ:OKTA) is an identity partner that offers products and services to manage and secure identities. The one-month return of Okta, Inc. (NASDAQ:OKTA) was -8.44%, and its shares gained 18.92% of their value over the last 52 weeks. On September 02, 2025, Okta, Inc. (NASDAQ:OKTA) stock closed at $89.50 per share, with a market capitalization of $15.778 billion.

Carillon Eagle Mid Cap Growth Fund stated the following regarding Okta, Inc. (NASDAQ:OKTA) in its second quarter 2025 investor letter:

"Okta, Inc. (NASDAQ:OKTA), a provider of cybersecurity software with a focus on identity and access, reported solid results for the quarter, but the outlook was below expectations, which was especially disappointing after a strong move higher in the stock. The challenging macroeconomic environment resulted in prospective corporate customers turning slightly more pessimistic, which, along with near-term uncertainty in the federal segment, resulted in muted guidance. However, the need for security software remains intact, and the company should continue to benefit from cross-selling new products, such as identity governance and privileged access management that provides higher security for C-level executives."

Okta, Inc. (NASDAQ:OKTA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Okta, Inc. (NASDAQ:OKTA) at the end of the second quarter, which was 65 in the previous quarter. While we acknowledge the potential of Okta, Inc. (NASDAQ:OKTA) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Okta, Inc. (NASDAQ:OKTA) and shared the list of AI stocks investors should keep on their radar. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.