If a CEO is spending millions of dollars on company stock, investors should take note. CEOs tend to be way ahead of analysts when it comes to the performance of their companies and their stock purchases can provide valuable trading signals.
In this report, we are going to highlight a large CEO stock purchase at Asana Inc (ASAN:US). Asana is an American technology company that offers a web and mobile application designed to help teams organize, track, and manage their work. Its platform is used by over 100,000 paying organizations and millions of teams worldwide. The company is listed on the New York Stock Exchange and currently has a market cap of approximately $5.42 billion.
$3.62 Mil CEO Purchase
Our insider transaction data shows that between June 8 and June 9, Asana’s Founder and CEO Dustin Moskovitz purchased 160,000 shares at an average price of $22.65 per share.
This purchase, which was made through a 10b5-1 trading plan, cost the insider around $3.62 million and increased his holding to 39.27 million shares.
Mr. Moskovitz is a well-known technology entrepreneur. Prior to founding Asana, he co-founded Facebook. While at Facebook, he served as the company’s first Chief Technology Officer and VP of Engineering. Given his background, he is likely to have a good understanding of Asana’s prospects.
Now, this is not a large trade by Mr. Moskovitz’s standards. Last September, he purchased $350 million worth of Asana stock when it was trading at $18.16. However, it is interesting that he is still buying the stock today. His purchases suggest that he continues to believe the company is undervalued.
Asana recently posted better-than-expected Q1 results.
For the quarter, revenue came in at $152.4 million, up 26% year on year, and ahead of the consensus forecast of $150.6 million. Meanwhile, loss per share was only nine cents versus analysts’ estimate of 18 cents.
Guidance was better than expected as well. For the current quarter, Asana expects to generate revenue of $157.5 million to $158.5 million. Analysts had been expecting $156.1 million.
It’s worth noting that during the first quarter, the number of customers spending $100,000 or more on an annualized basis grew to 510. This represented growth of 31% year on year. And the dollar-based net retention rate for customers spending over $100k per year was over 130%, indicating that there is a high degree of customer satisfaction here.
In light of these results, we see this insider buying as a bullish development.