Asana (NYSE:ASAN) Stock Falls 5% - Time to Sell?

Key Points

• Asana shares fell 5% to about $10.08 on Monday, while trading volume was 91% below its average.
• Analysts have a consensus Hold rating and an average price target of $9.95; recent ratings were mixed, including a Zacks downgrade to Strong Sell.
• Asana beat quarterly EPS and revenue estimates, with revenue up 9.9% year over year, but it still reported a negative net margin and analysts expect a full-year loss.

Asana, Inc. (NYSE:ASAN - Get Free Report)'s share price traded down 5% during trading on Monday. The company traded as low as $10.17 and last traded at $10.0750. 559,057 shares traded hands during mid-day trading, a decline of 91% from the average daily volume of 5,981,881 shares. The stock had previously closed at $10.61.

Analyst Upgrades and Downgrades

ASAN has been the topic of several research analyst reports. Piper Sandler lifted their price objective on Asana from $7.00 to $9.00 and gave the company a "neutral" rating in a research note on Friday, September 4th. Citigroup reissued a "market outperform" rating on shares of Asana in a research report on Monday, August 24th. Royal Bank Of Canada raised their price target on shares of Asana from $8.00 to $9.50 and gave the company a "sector perform" rating in a report on Friday, September 4th. DA Davidson lifted their price target on shares of Asana from $8.00 to $9.00 and gave the company a "neutral" rating in a research report on Friday, September 4th. Finally, Zacks Research downgraded shares of Asana from a "hold" rating to a "strong sell" rating in a research note on Friday, October 9th. Four research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $9.95.

Asana Stock Down 4.1%

The firm has a market cap of $2.33 billion, a price-to-earnings ratio of -15.40 and a beta of 0.99. The business has a 50 day moving average price of $9.97 and a 200-day moving average price of $8.15.

Asana (NYSE:ASAN - Get Free Report) last issued its quarterly earnings data on Thursday, September 3rd. The company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.01. The company had revenue of $216.43 million during the quarter, compared to the consensus estimate of $214.15 million. Asana had a negative net margin of 18.62% and a negative return on equity of 80.33%. Asana's revenue for the quarter was up 9.9% on a year-over-year basis. During the same quarter last year, the company earned $0.06 earnings per share. Asana has set its FY 2027 guidance at 0.370-0.370 EPS and its Q3 2027 guidance at 0.080-0.080 EPS. Research analysts anticipate that Asana, Inc. will post -0.53 earnings per share for the current fiscal year.

Insider Activity at Asana

In other Asana news, CEO Daniel Rogers sold 19,676 shares of the business's stock in a transaction on Thursday, October 22nd. The shares were sold at an average price of $11.52, for a total value of $226,667.52. Following the transaction, the chief executive officer owned 1,437,022 shares in the company, valued at $16,554,493.44. The trade was a 1.35% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Aziz Megji sold 3,224 shares of the company's stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $9.26, for a total transaction of $29,854.24. Following the completion of the transaction, the chief financial officer directly owned 726,721 shares of the company's stock, valued at approximately $6,729,436.46. The trade was a 0.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 551,360 shares of company stock valued at $5,239,118. Corporate insiders own 87.54% of the company's stock.

Institutional Trading of Asana

A number of hedge funds and other institutional investors have recently modified their holdings of ASAN. Sterling Capital Management LLC boosted its stake in shares of Asana by 801.8% during the 3rd quarter. Sterling Capital Management LLC now owns 3,084 shares of the company's stock valued at $26,000 after buying an additional 2,742 shares during the last quarter. Pinnacle Wealth Planning Services Inc. grew its position in shares of Asana by 131.6% during the third quarter. Pinnacle Wealth Planning Services Inc. now owns 3,126 shares of the company's stock worth $26,000 after buying an additional 1,776 shares in the last quarter. Optiver Holding B.V. grew its position in shares of Asana by 2,008.8% during the first quarter. Optiver Holding B.V. now owns 5,251 shares of the company's stock worth $34,000 after buying an additional 5,002 shares in the last quarter. Performa Ltd US LLC increased its stake in shares of Asana by 335.1% in the first quarter. Performa Ltd US LLC now owns 6,200 shares of the company's stock worth $40,000 after buying an additional 4,775 shares during the last quarter. Finally, State of Alaska Department of Revenue bought a new stake in shares of Asana in the third quarter worth $69,000. 26.21% of the stock is owned by hedge funds and other institutional investors.

About Asana

Asana, Inc develops cloud-based work management software that helps organizations coordinate projects, tasks and ongoing business processes. Its platform is designed to provide teams with a shared view of work, responsibilities, deadlines and progress across departments and functions.

Asana's products include tools for project and task management, workflow coordination, goals, portfolios, reporting and team collaboration. The platform also incorporates automation and artificial intelligence features intended to help users organize work, streamline recurring processes and gain visibility into organizational priorities.

The company was founded in 2008 by Dustin Moskovitz, a co-founder of Facebook, and Justin Rosenstein, a former Facebook and Google executive.

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