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Should You Buy or Sell OKTA Stock Ahead of Its Earnings?
Forbes· 2025-05-26 13:40
Group 1 - Okta is scheduled to report earnings on May 27, 2025, with historical stock volatility around earnings releases, showing a positive one-day return in 55% of instances over the past five years, with a median positive return of 11.7% and a maximum of 26.5% [1][2] - Analysts expect Okta to report earnings of $0.77 per share on sales of $680 million for the upcoming quarter, compared to earnings of $0.65 per share on sales of $617 million in the same quarter last year [2] - Okta currently has a market capitalization of $21 billion and generated $2.6 billion in revenue over the last twelve months, with an operating loss of -$63 million but a net income of $28 million [3] Group 2 - Historical data shows 20 earnings data points over the last five years, with 11 positive and 9 negative one-day returns, resulting in positive returns approximately 55% of the time, increasing to 58% over the last three years [7] - The median of the 11 positive returns is 12%, while the median of the 9 negative returns is -8.1% [7] - Strategies for event-driven traders include pre-earnings positioning based on historical odds and post-earnings positioning by examining the correlation between immediate and medium-term returns [6]