Here’s Why Asana Stock Could See Higher Highs

Investors may want to keep an eye on Asana (ASAN).

While the rest of the market takes a dive, the ASAN stock is up 20% on a volume spike to 24.5 million shares, as compared to its daily average of 3.28 million.

All thanks to strong earnings, and on news CEO Dustin Moskovitz will buy 30 million shares, saying, “I‘m doing this because I personally believe Asana shares are undervalued, given the scale of the opportunity I see in front of us” on an earnings call.

The company posted a Q4 net loss of $95 million, or 44 cents a share, as compared to a year-earlier loss of $90 million, or 48 cents a share.  Revenue jumped 34% to $150.2 million from $111.9 million year over year.  

Adjusted, the company lost 15 cents, as compared to a 25-cent loss year over year.  Analysts were looking for an adjusted loss of 27 cents on revenue of $145.1 million. Asana also forecast first-quarter sales of $150 million to $151 million, with an adjusted net loss of between 18 cents and 19 cents a share. Those numbers are better than forecasts for a loss of 23 cents on sales of $150.4 million.

A number of analysts raised their price targets as a result.  Piper Sandler, for example, raised its target from $13 to $24.  JMP Securities raised from $21 to $28.  Baird raised from $15 to $20. Jefferies raised from $15 to $23.  And DA Davidson raised from $18 to $21.