Wall Street Zen Downgrades Asana (NYSE:ASAN) to Buy

Key Points

• Wall Street Zen downgraded Asana from “strong-buy” to “buy” in a Sunday research note, even as other analysts remain mixed on the stock.
• Asana’s current analyst consensus is “Hold” with a $9.27 average price target, based on a mix of buy, hold, and sell ratings from multiple firms.
• The company recently beat quarterly EPS and revenue estimates, but it still reported negative margins; shares were trading around $7.31, below the consensus price target and near the stock’s recent averages.

Asana (NYSE:ASAN - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued to investors on Sunday.

ASAN has been the subject of a number of other reports. Citigroup reissued a "market outperform" rating on shares of Asana in a research note on Friday, May 29th. Morgan Stanley cut their price objective on Asana from $8.00 to $7.00 and set an "underweight" rating on the stock in a research report on Friday, May 29th. UBS Group reiterated a "neutral" rating and set a $8.00 target price on shares of Asana in a report on Friday, May 29th. Royal Bank Of Canada increased their target price on Asana from $7.00 to $8.00 and gave the stock a "sector perform" rating in a research report on Friday, May 29th. Finally, DA Davidson restated a "neutral" rating and issued a $8.00 target price on shares of Asana in a research note on Friday, May 29th. Three equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $9.27.

Asana Price Performance

Asana stock traded down $0.06 during mid-day trading on Friday, reaching $7.31. 4,667,816 shares of the company traded hands, compared to its average volume of 5,092,294. The firm's 50 day moving average price is $7.04 and its 200 day moving average price is $8.11. The firm has a market capitalization of $1.68 billion, a price-to-earnings ratio of -10.59 and a beta of 0.97. Asana has a 52-week low of $5.38 and a 52-week high of $15.71.

Asana (NYSE:ASAN - Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The company reported $0.10 EPS for the quarter, topping the consensus estimate of $0.08 by $0.02. Asana had a negative net margin of 20.21% and a negative return on equity of 74.32%. The business had revenue of $205.09 million during the quarter, compared to analyst estimates of $203.58 million. During the same period in the prior year, the business earned $0.05 EPS. The company's revenue for the quarter was up 9.5% on a year-over-year basis. Asana has set its FY 2027 guidance at 0.370-0.370 EPS and its Q2 2027 guidance at 0.080-0.090 EPS. On average, sell-side analysts anticipate that Asana will post -0.4 EPS for the current year.

Insider Buying and Selling at Asana

In other Asana news, CEO Daniel Mark Rogers sold 26,975 shares of the company's stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $6.66, for a total value of $179,653.50. Following the sale, the chief executive officer owned 1,905,780 shares in the company, valued at approximately $12,692,494.80. This represents a 1.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Katie Marie Colendich sold 8,337 shares of the firm's stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $6.74, for a total transaction of $56,191.38. Following the transaction, the insider directly owned 181,840 shares of the company's stock, valued at $1,225,601.60. This represents a 4.38% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 118,304 shares of company stock valued at $792,775 in the last quarter. 61.28% of the stock is owned by insiders.

Institutional Trading of Asana

Several hedge funds and other institutional investors have recently made changes to their positions in ASAN. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Asana by 5.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 48,546 shares of the company's stock valued at $707,000 after buying an additional 2,328 shares in the last quarter. Empowered Funds LLC boosted its holdings in Asana by 40.9% in the first quarter. Empowered Funds LLC now owns 25,441 shares of the company's stock worth $371,000 after acquiring an additional 7,381 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Asana by 14.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 258,733 shares of the company's stock worth $3,770,000 after acquiring an additional 32,708 shares during the last quarter. American Century Companies Inc. purchased a new stake in shares of Asana in the second quarter worth $158,000. Finally, Prudential Financial Inc. bought a new position in shares of Asana during the second quarter valued at $160,000. Hedge funds and other institutional investors own 26.21% of the company's stock.

About Asana

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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