A CEO has deeper insight into their own company’s operations than any outside analyst or fund manager could ever hope to obtain. So, if a CEO is buying company stock, it’s often worth taking a closer look.
In this report, we are going to highlight some CEO buying at Asana Inc (ASAN:US). Asana is a US technology company that offers a web and mobile application designed to help teams organize, track, and manage their work. Its platform is currently 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 capitalization of $21.7 billion.
Asana Inc: Insider Buying
Our insider transaction data shows that between 8 September and 13 September, Asana’s Co-Founder and CEO Dustin Moskovitz purchased stock four times at prices between $93.21 per share and $100 per share. In total, the insider bought 763,915 shares, spending $73.8 million on stock.
Dustin Moskovitz is a well-known technology entrepreneur. Prior to founding Asana, he co-founded Facebook and served as the company’s first Chief Technology Officer and VP of Engineering. In March of 2011, Forbes reported Moskovitz to be the youngest self-made billionaire ever.
Our data shows that the recent trades from Mr. Moskovitz were part of a Rule 10b5-1 trading plan. This means they were automated. We still think they are significant, however.
For a start, the trades are very large. The fact that Mr. Moskovitz has spent nearly $75 million on stock and increased the size of his holding from 3.95 million shares to 4.71 million shares suggests that he is very confident the stock is set to move higher.
Secondly, the trades have taken place at high prices. This indicates that the insider still sees value in the stock despite its recent rise.
Record Q2 Results
Asana’s recent second-quarter results showed that the company continues to grow rapidly.
For the period, revenue came in at $89.5 million, up 72% year on year. Meanwhile, revenue from customers spending $50,000 or more on an annualized basis grew 111% year over year. The group ended the period with 107,000 paying customers.
“In the second quarter we accelerated total revenue growth, continued to report strong customer growth and increased dollar-based net retention rates across the board. Customers are adopting Asana everywhere: across our major geographies and across all sizes of teams. We saw particular strength in the enterprise, with the number of customers spending over $50,000 up 111 percent," commented Mr. Moskovitz.
On the back of these strong results, the company raised its fiscal year 2022 guidance. It now expects revenues of $357 million to $359 million, representing year over year growth of 57% to 58%.
In light of the strong growth here, we see the insider buying as a bullish indicator.