Take off with Asana Inc. (ASAN): Get ready for trading

Asana Inc. (NYSE: ASAN) stock jumped 3.74% on Friday to $13.59 against a previous-day closing price of $13.10. With 2.94 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.58 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $13.73 whereas the lowest price it dropped to was $13.00. The 52-week range on ASAN shows that it touched its highest point at $74.89 and its lowest point at $11.32 during that stretch. It currently has a 1-year price target of $19.50.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ASAN was down-trending over the past week, with a drop of -3.21%, but this was down by -2.93% over a month. Three-month performance dropped to -27.52% while six-month performance fell -30.63%. The stock lost -74.40% in the past year, while it has lost -1.31% so far this year. A look at the trailing 12-month EPS for ASAN yields -2.08 with Next year EPS estimates of -0.80. For the next quarter, that number is -0.27. This implies an EPS growth rate of -24.70% for this year and 31.00% for next year.

Float and Shares Shorts:

At present, 204.66 million ASAN shares are outstanding with a float of 75.90 million shares on hand for trading. On Oct 13, 2022, short shares totaled 15.94 million, which was 7.55% higher than short shares on Sep 14, 2022. In addition to Mr. Dustin A. Moskovitz as the firm’s Co-Founder, Pres, CEO & Chair, Mr. Justin Rosenstein serves as its Co-Founder, Advisor & Director.


Institutional Ownership:

Through their ownership of 52.20% of ASAN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.35% of ASAN, in contrast to 28.37% held by mutual funds. Shares owned by individuals account for 18.16%. As the largest shareholder in ASAN with 5.92% of the stake, Himension Capital holds 7,536,622 shares worth 7,536,622. A second-largest stockholder of ASAN, The Vanguard Group, Inc., holds 6,672,091 shares, controlling over 5.24% of the firm’s shares. Champlain Investment Partners LLC is the third largest shareholder in ASAN, holding 5,834,769 shares or 4.58% stake. With a 1.64% stake in ASAN, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 2,088,403 shares are owned by the mutual fund manager. The Champlain Mid Cap Fund, which owns about 1.57% of ASAN stock, is the second-largest Mutual Fund holder. It holds 2,000,000 shares valued at 27.54 million. Vanguard Small Cap Index Fund holds 1.40% of the stake in ASAN, owning 1,777,075 shares worth 24.47 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ASAN since 16 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ASAN analysts setting a high price target of $30.00 and a low target of $10.00, the average target price over the next 12 months is $18.86. Based on these targets, ASAN could surge 120.75% to reach the target high and fall by -26.42% to reach the target low. Reaching the average price target will result in a growth of 38.78% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ASAN will report FY 2023 earnings on 03/09/2023. Analysts have provided yearly estimates in a range of -$1.14 being high and -$1.22 being low. For ASAN, this leads to a yearly average estimate of -$1.17. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Asana Inc. surprised analysts by $0.06 when it reported -$0.26 EPS against a consensus estimate of -$0.32. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is -$0.27 and the low estimate is -$0.28. The average estimate for the next quarter is thus -$0.27.

Summary of Insider Activity:

Insiders traded ASAN stock several times over the past three months with 5 Buys and 2 Sells. In these transactions, 2,792 shares were bought while 7,089 shares were sold. The number of buy transactions has increased to 133 while that of sell transactions has risen to 26 over the past year. The total number of shares bought during that period was 25,486,857 while 112,760 shares were sold.

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