Trading Options with an Edge
Select Page

Hawk’s Nest

Asana (ASAN) shares double in two months after options alert signals further upside

by | Sep 17, 2021

Asana (ASAN) has been a top performing Software stock this year and even after rallying from May lows sharply we noticed a surge in bullish activity with a write-up on 7/16.

Since that post ASAN shares have doubled and the calls have gained way more. Options flow is a great way to see whether a name that rallied still has further upside based on the timeframe and strike positioning.

This was our 7/16 post:

Asana (ASAN) shares have seen a massive rally since putting in a strong reversal candle on 5/11 and shares now up 127% YTD. ASAN continues to attract nothing but bullish flow with the January $50 calls bought on 7/13 1000X for $2.32M and follows some buyers in November OTM calls, the November $55 calls 1000X for $1.4M on 7/1, December $52.5 and $55 calls bought on 7/1 and 2275 February $52.50 puts sold to open on 7/2. ASAN has strong momentum and currently flagging under the $70 level. ASAN was featured as a top name in our collaborative work thematic write-up in December. Asana is a work management platform that helps teams orchestrate work, from daily tasks to cross-functional strategic initiatives. Its platform adds structure to unstructured work, creating clarity, transparency, and accountability to everyone within an organization—individuals, team leads, and executives—so they understand exactly who is doing what, by when. ASAN now has a market cap of $10.7B and trades 32.5X EV/Sales for FY21 and 25X for FY22 with revenues seen rising 49% and 29% respectively. ASAN’s dollar-based net retention rate within organizations spending $5,000 or more on an annualized basis was 125%, consisting of 10,174 customers while dollar-based net retention rate within organizations spending $50,000 or more on an annualized basis was over 140%, consisting of 397 customers. ASAN sees targeting a $32B opportunity for 2023 with collaborative applications and project/portfolio management software as it aims at the 1.25B global information workers with current user penetration less than 3%. ASAN operates with best-in-class 90% gross margins. Analysts have an average target of $50 and short interest is 10% of the float. KeyBanc raised its target to $75 from $48 this week. Jefferies raised its target to $65 on 6/18 noting the CEO and co-founder recently bought 1.55M shares for over $67M and sees it a good indication of the future as ASAN has accelerated growth the last two quarters. Hedge Fund ownership surged 30% last quarter.”