Asana Shares Are Tumbling Tuesday: What's Driving The Action?

Benzinga
12 Mar

Asana Inc (NYSE:ASAN) shares are plunging Tuesday on the heels of the company’s fourth-quarter financial results. Several analysts cut price targets following the print.

What Happened: Asana reported fourth-quarter revenue of $188.33 million, beating analyst estimates of $188.1 million, according to Benzinga Pro. The company reported breakeven fourth-quarter earnings, beating analyst estimates for a loss of 1 cent per share.

Asana guided for first-quarter revenue of $184.5 million to $186.5 million and first-quarter adjusted earnings of 2 cents per share. The company expects full-year revenue of $782 million to $790 million, and full-year adjusted earnings of 19 cents to 20 cents per share.

Asana also announced that co-founder, CEO and chair Dustin Moskovitz informed the board of his intention to transition to the role of chair. Asana has retained an executive search firm to search for a new CEO. Moskovitz will remain CEO until a successor takes over.

Following the company’s quarterly results and CEO transition announcement, multiple analysts lowered price targets.

  • Piper Sandler analyst Brent Bracelin maintained an Overweight and lowered the price target from $27 to $18.
  • Baird analyst Rob Oliver maintained a Neutral and lowered the price target from $23 to $13.
  • Jefferies analyst Brent Thill maintained a Hold and lowered the price target from $19 to $15.
  • BofA Securities analyst Michael Funk maintained a Buy and lowered the price target from $30 to $25.
  • Citizens Capital Markets analyst Patrick Walravens maintained a Market Outperform and lowered the price target from $25 to $22.
  • Scotiabank analyst Allan Verkhovski maintained a Sector Perform and lowered the price target from $18 to $12.
  • UBS analyst Taylor McGinnis maintained a Neutral and lowered the price target from $18 to $14.
  • JPMorgan analyst Pinjalim Bora maintained an Underweight and lowered the price target from $15 to $13.

ASAN Price Action: Asana shares were down 23.4% at $12.78 at the time of publication Tuesday, according to Benzinga Pro.

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Photo: Shutterstock.

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