Dustin Moskovitz, President and CEO of Asana (ASAN), has been a repeat buyer of shares, with four purchases this month for over 1.2 million shares. The buys have increased his position by 2%, and have cost over $17 million so far.
Moskovitz has also been a buyer on several occasions last month. Going further back, Asana insiders were far more likely to be sellers of shares, with one company director and major shareholder responsible for the bulk of the sales.
Overall, Asana insiders own 42.4% of shares.
The work management software program is up 9% over the past year, slightly edging out the S&P 500’s performance over the same period.
While Asana has grown revenues by 10%, they continue to operate at a loss, with Asana sporting a negative 35% profit margin right now. However, Asana has enough cash on hand to continue operations for years, so there’s low risk of bankruptcy here.
Action to take: The high level of insider ownership suggests that management is aligned with shareholders.
However, Asana trades over 90% off from its 2021 highs, and without a shift to profitability, shares will likely languish. That makes the stock a buy for speculative investors only.
For traders, the August $20 calls, last priced at about $0.80, could see high double-digit gains or better if shares take off in the months ahead. With the notable insider buying from the CEO, shares may surprise to the upside.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.