Asana, Inc. (NYSE:ASAN) is up 13%, but insiders still continue to see a loss of US$29m on their US$350m investment
Some of the losses seen by insiders who purchased US$350m worth of Asana, Inc. (NYSE:ASAN) shares over the past year were recovered after the stock increased by 13% over the past week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$29m since the time of purchase.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Asana
Asana Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Dustin Moskovitz bought US$350m worth of shares at a price of US$18.16 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$16.64). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Dustin Moskovitz was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Asana is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Asana Have Sold Stock Recently
Over the last three months, we've seen a bit of insider selling at Asana. General Counsel Eleanor Lacey sold just US$28k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.
Insider Ownership Of Asana
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Asana insiders own 64% of the company, currently worth about US$2.3b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Asana Insider Transactions Indicate?
While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Asana insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Asana. You'd be interested to know, that we found 2 warning signs for Asana and we suggest you have a look.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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