The workplace management specialist got a boost from a Wall Street analyst.
Shares of Asana surged as much as 9.7% higher Monday, though the stock closed out the trading session up by only 3.9%.
The catalysts driving the cloud-based workplace collaboration and planning specialist upward were a price target boost and bullish commentary issued by a Wall Street analyst.
Jefferies Financial Group analyst Brent Thill raised the investment bank's price target on Asana to $115 from $90 this week while maintaining a buy rating on the stock, according to a report by The Fly. Thill's new forecast would represent potential gains of 18% for investors over the coming year compared with Friday's closing price.
In his note to clients, Thill pointed out that CEO and co-founder Dustin Moskovitz had purchased an additional 750,000 shares of Asana stock last week, bringing his total purchases over the past three months to $217 million or 3.6 million shares.
Thill went on to say that the increasing stock price during the period of the purchases is a "great indicator" that Asana's performance and business momentum should continue. He cited as evidence the fact that the company's revenue growth has accelerated for three successive quarters.
There's an oft-quoted Wall Street saying regarding stock purchases by insiders: "There are lots of reasons to sell a stock, but only one reason to buy." The numerous and ongoing stock purchases by Asana's chief executive represent a pretty compelling case for investors.
Moskovitz is already one of the largest individual shareholders of Asana, and controls a majority of the voting power due to the company's dual share classes. Given his intimate knowledge of the company and its prospects, it's a fairly strong vote of confidence that he continues to stockpile shares.
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