Asana (NYSE: ASAN) shares popped by 11.2% late last week. Should you buy in? If you already have a position, should you hold onto it? Let’s take a closer look. The jump followed an announcement of a $150 million share repurchase program authorized by Asana’s Board of Directors. Set to run through June 30, 2025, it suggests management's confidence in the company's undervalued status and long-term potential. It also reaffirmed its previous financial guidance, assuring investors amidst a season of unexpected results from other enterprise software providers.
Revenue projections include $177-178 million in Q2 FY2025 (9-10% YoY growth) and $719-724 million for full year FY2025 (10-11% YoY growth). Asana also anticipates positive free cash flow for the full fiscal year.
What's New At Asana?
CEO Dustin Moskovitz emphasized Asana's role in the AI-driven transformation of work, positioning the company as an ideal platform for human-AI collaboration to enhance productivity and innovation. What’s really going on there? Earlier this month, the company announced Asana AI Teammates and the Work Graph®, its proprietary data model. These customizable AI collaborators help a company’s teams maximize impact and realize goals on a faster timeline. AI teammates can determine priorities, create workflows, and even take on the tasks themselves while adapting to how the human teams operate. In March, Asana also launched a suite of intelligent AI-driven tools for CIOs.
What The Industry Thinks
Analyst sentiment regarding ASAN is mixed. While upbeat about the repurchase news and its more than 139,000 paying customers, Asana's stock has demonstrated high volatility, with 37 moves exceeding 5% over the past year. The price is down 29.6% year-to-date and is trading 48.8% below its 52-week high from July 2023. The company's share value has significantly decreased since its September 2020 IPO. A $1,000 investment at that time is now worth $433.68. Based on 15 Wall Street analysts, the 12-month price target for ASAN is $16.25, with a consensus Hold.
Neither Julie Stoller nor Stocks.News have positions in this company.
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Contributing Writer
As a professional writer since 2012, Julie Stoller has covered many industries, from healthcare and technology to consumer products and industrials. She has written about IPOs, spinoffs, ETFs, stock splits, commodities, legislative actions impacting investors, and macroeconomic issues. While keeping up with the latest meme stocks and trends, Julie's special interests are discovering ...