I'm sure you saw ... Moskovitz buys 500k shares @ $64.70 per share 1/13 ... $32,350,000 when we getting back in ?
Dustin Moskovitz and his co-founder, Justin Rosenstein have enough money to buy their own company outright. ASAN has a $10 billion market cap, and those two can cover that cost easily.
Insiders buy for only one reason, and that is they think their company will be worth more in the future. They are likely to be proven right in due time. The question you must ask yourself is how long of a time frame do you have?
That company was founded in 2008 and went public in October of 2020. The two co-founders have been working on that companies success for 14 years, and it has been public for only 16 months. In other words, they have a long time frame.
The stock broke out of its IPO base in June of 2021 at $46. It is not unreasonable to think it may return to its pivot area. A round trip for any stock is not abnormal. Maybe that would be a good time to buy for someone trying to pick a bottom?
I like to buy strength, and would not touch this stock until I see some institutional support. That is just my style. If you want start buying now and dollar cost average into this stock then that is your style.
The daily chart show no signs of support just yet, and the stock is trading 30% below its 200sma. The past two days it has been selling off with strong volumeThe weekly chart shows a relative strength line in decline. The stock has sold off for four consecutive weeks with no buyers in sight (except the CEO). It looks like it wants to return to its IPO pivot area around $46.
Their story is fantastic as they both left Facebook and want to prove themselves with another company. I understand their products are really good from the people who use them (I do not!). It is a story that I like. But, I cannot buy any stock until I see some institutional support.
The monthly chart shows three consecutive months of decline. We also see that institutional support is increasing every quarter, and Lord Abbett owns a 1.27% stake in this company.The question is how much pain can you take while it is in a downtrend? Do you have the patience to wait for it to stabilize and start a new uptrend? Do you want to employ the strategy of dollar cost averaging? You must answer those questions.
I may buy this stock back if it starts to trend higher and trades through its moving averages.
I hope this answers your question!