What Happened:
Shares of work management software maker Asana (NYSE: ASAN) jumped 5.8% in the after-market session after a regulatory filing showed that Co-founder and CEO Dustin Moskovitz bought 160k shares of Asana at prices between $22 and $24 for a total of nearly $3.7 million. Insider buying, especially by a founder or CEO, is usually a bullish signal showing that the "smart money" believes the stock is undervalued. These purchases were made as part of a 10b5-1 trading plan that Moskovitz adopted. A 10b5-1 is a predetermined trading plan set up by company executives to transact in company stock to avoid appearances of insider trading.
What is the market telling us:
Asana's shares are very volatile and over the last year have had 84 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Asana is up 86.9% since the beginning of the year, but at $24.79 per share it is still trading 13.6% below its 52-week high of $28.71 from September 2022. Investors who bought $1,000 worth of Asana's shares at the IPO in September 2020 would now be looking at an investment worth $859.73.
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