Morgan Stanley Lowers Asana (NYSE:ASAN) Price Target to $7.00

Key Points

• Morgan Stanley cut its price target on Asana from $8 to $7 and kept an underweight rating, implying modest downside from the current share price.
• Asana’s shares rose 12.8% in Friday trading to $7.52 after the company reported a stronger-than-expected quarter, with EPS of $0.10 and revenue of $205.1 million.
• The company also lifted guidance and completed its acquisition of StackAI, though analysts remain cautious amid ongoing losses, insider selling, and mixed Wall Street sentiment.

Asana (NYSE:ASAN - Get Free Report) had its price target reduced by stock analysts at Morgan Stanley from $8.00 to $7.00 in a research note issued on Friday,Benzinga reports. The firm currently has an "underweight" rating on the stock. Morgan Stanley's price target would indicate a potential downside of 6.85% from the stock's current price.

A number of other research analysts also recently issued reports on ASAN. HSBC set a $8.00 price target on Asana in a research note on Friday, February 13th. Weiss Ratings restated a "sell (e+)" rating on shares of Asana in a research note on Friday, May 8th. KeyCorp dropped their price target on Asana from $18.00 to $15.00 and set an "overweight" rating on the stock in a research note on Tuesday, March 3rd. Royal Bank Of Canada reiterated a "sector perform" rating on shares of Asana in a research note on Friday. Finally, UBS Group decreased their target price on shares of Asana from $16.00 to $9.00 and set a "neutral" rating for the company in a research note on Tuesday, March 3rd. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eight have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, Asana has a consensus rating of "Hold" and an average target price of $12.25.

Asana Stock Up 12.8%

NYSE:ASAN traded up $0.86 during mid-day trading on Friday, reaching $7.52. 7,047,076 shares of the stock were exchanged, compared to its average volume of 6,015,096. The company has a 50 day simple moving average of $6.31 and a 200-day simple moving average of $9.39. The stock has a market capitalization of $1.79 billion, a P/E ratio of -9.36 and a beta of 0.95. Asana has a 1 year low of $5.38 and a 1 year high of $19.00.

Asana (NYSE:ASAN - Get Free Report) last released its quarterly earnings results on Thursday, May 28th. The company reported $0.10 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.08 by $0.02. The firm had revenue of $205.10 million for the quarter, compared to the consensus estimate of $203.58 million. Asana had a negative return on equity of 77.05% and a negative net margin of 23.90%.The firm's quarterly revenue was up 9.5% compared to the same quarter last year. During the same quarter last year, the business posted $0.05 EPS. Asana has set its FY 2027 guidance at 0.370-0.370 EPS and its Q2 2027 guidance at 0.080-0.090 EPS. As a group, research analysts predict that Asana will post -0.53 EPS for the current year.

Insider Buying and Selling at Asana

In other news, CFO Sonalee Elizabeth Parekh sold 34,151 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.65, for a total value of $227,104.15. Following the completion of the sale, the chief financial officer directly owned 933,998 shares of the company's stock, valued at $6,211,086.70. This trade represents a 3.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Veronica Sosa sold 6,479 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.65, for a total value of $43,085.35. Following the completion of the sale, the chief accounting officer directly owned 73,722 shares of the company's stock, valued at $490,251.30. This represents a 8.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 70,226 shares of company stock worth $472,065. 61.28% of the stock is currently owned by insiders.

Institutional Trading of Asana

Several hedge funds have recently modified their holdings of ASAN. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Asana by 37.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 7,184,248 shares of the company's stock valued at $45,979,000 after buying an additional 1,969,657 shares during the period. Jupiter Asset Management Ltd. lifted its holdings in shares of Asana by 705.6% in the 4th quarter. Jupiter Asset Management Ltd. now owns 1,374,891 shares of the company's stock valued at $18,850,000 after buying an additional 1,204,232 shares during the period. Bank of America Corp DE lifted its holdings in shares of Asana by 92.6% in the 1st quarter. Bank of America Corp DE now owns 2,237,195 shares of the company's stock valued at $14,318,000 after buying an additional 1,075,572 shares during the period. Goldman Sachs Group Inc. increased its holdings in Asana by 53.8% in the fourth quarter. Goldman Sachs Group Inc. now owns 2,791,902 shares of the company's stock valued at $38,277,000 after buying an additional 977,107 shares in the last quarter. Finally, Marshall Wace LLP increased its holdings in Asana by 35.1% in the fourth quarter. Marshall Wace LLP now owns 2,653,145 shares of the company's stock valued at $36,375,000 after buying an additional 689,546 shares in the last quarter. 26.21% of the stock is owned by institutional investors and hedge funds.

Asana News Roundup

Here are the key news stories impacting Asana this week:

• Positive Sentiment: Asana beat first-quarter fiscal 2027 earnings and revenue estimates, reporting $0.10 EPS on $205.1 million in revenue, with revenue up 9.5% year over year. Article Title
• Positive Sentiment: Management also raised guidance, with Q2 and full-year EPS outlooks above Wall Street expectations, signaling improving profitability and encouraging investors. Article Title
• Positive Sentiment: Asana completed its acquisition of StackAI, a no-code AI workflow platform, which could strengthen its product offering and support longer-term growth in enterprise automation. Article Title
• Positive Sentiment: Investors also viewed improving operating cash flow and margin progress as signs that Asana is making progress on financial discipline, even though the business remains unprofitable. Article Title
• Neutral Sentiment: An investor note said the stock remains challenged by sub-100% net retention and a still-elevated share price decline over the longer term, keeping some analysts cautious despite the strong quarter. Article Title
• Negative Sentiment: Some coverage highlighted that the company is still posting losses and that insider selling has been ongoing, which may temper enthusiasm for the rally. Article Title

Asana Company Profile

Asana, Inc NYSE: ASAN is a leading provider of work management and collaboration software designed to help teams organize, track and manage their work. Founded in 2008 by Dustin Moskovitz and Justin Rosenstein, Asana's platform enables users to create projects, assign tasks, set deadlines and visualize progress across diverse workflows. The company's cloud-based solution includes customizable project templates, timeline views, boards and automated rules that streamline routine processes and reduce manual effort.

Built for both small teams and large enterprises, Asana supports integrations with a wide array of third-party applications, including communication tools, file-sharing services and DevOps platforms.

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