Atlassian (NASDAQ:TEAM) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Key Points

• Royal Bank of Canada raised Atlassian’s price target to $235 from $215 and maintained an “outperform” rating, implying 12.18% upside from the prior close.
• Analyst sentiment remains positive: 25 analysts rate the stock a Buy, with a consensus “Moderate Buy” rating and average price target of $192.30.
• Atlassian’s latest quarterly results exceeded expectations, with EPS of $1.87 versus $1.50 expected and revenue of $1.77 billion, up 27.6% year over year.

Atlassian (NASDAQ:TEAM - Get Free Report) had its target price hoisted by Royal Bank Of Canada from $215.00 to $235.00 in a report issued on Monday, Benzinga reports. The brokerage currently has an "outperform" rating on the technology company's stock. Royal Bank Of Canada's target price suggests a potential upside of 12.18% from the stock's previous close.

Several other brokerages have also recently issued reports on TEAM. Wall Street Zen upgraded shares of Atlassian from a "hold" rating to a "buy" rating in a research report on Sunday, September 13th. Raymond James Financial set a $180.00 price target on shares of Atlassian in a report on Friday, August 7th. Bank of America boosted their price objective on shares of Atlassian from $175.00 to $210.00 and gave the stock a "buy" rating in a research note on Monday, August 31st. Cantor Fitzgerald increased their price objective on Atlassian from $175.00 to $220.00 and gave the company an "overweight" rating in a report on Monday, September 21st. Finally, BTIG Research upped their price target on Atlassian from $180.00 to $230.00 and gave the company a "buy" rating in a research report on Thursday, September 3rd. Twenty-five investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Atlassian currently has a consensus rating of "Moderate Buy" and an average price target of $192.30.

Atlassian Stock Performance

Atlassian stock opened at $209.49 on Monday. The business has a 50 day moving average of $175.62 and a 200-day moving average of $115.49. Atlassian has a 1 year low of $56.01 and a 1 year high of $208.79. The company has a debt-to-equity ratio of 0.93, a current ratio of 0.78 and a quick ratio of 0.78. The company has a market capitalization of $53.16 billion, a P/E ratio of -1,106.87, a P/E/G ratio of 16.25 and a beta of 1.22.

Atlassian (NASDAQ:TEAM - Get Free Report) last issued its quarterly earnings data on Friday, August 7th. The technology company reported $1.87 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.50 by $0.37. Atlassian had a negative net margin of 0.82% and a positive return on equity of 20.99%. The business had revenue of $1.77 billion during the quarter, compared to analyst estimates of $1.66 billion. During the same quarter last year, the business earned $0.98 EPS. The firm's quarterly revenue was up 27.6% on a year-over-year basis. On average, equities research analysts predict that Atlassian will post 0.94 earnings per share for the current year.

Insider Activity at Atlassian

In other Atlassian news, CRO Brian Duffy sold 1,851 shares of Atlassian stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $172.45, for a total value of $319,204.95. Following the completion of the sale, the executive directly owned 218,223 shares in the company, valued at approximately $37,632,556.35. The trade was a 0.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Gene Liu sold 939 shares of Atlassian stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $190.00, for a total value of $178,410.00. Following the completion of the sale, the chief accounting officer owned 55,868 shares of the company's stock, valued at approximately $10,614,920. The trade was a 1.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 22,138 shares of company stock worth $3,751,873 in the last 90 days. Corporate insiders own 36.66% of the company's stock.

Hedge Funds Weigh In On Atlassian

Institutional investors and hedge funds have recently modified their holdings of the business. Pictet Asset Management Holding SA raised its holdings in shares of Atlassian by 27.4% in the 1st quarter. Pictet Asset Management Holding SA now owns 5,031,413 shares of the technology company's stock worth $343,344,000 after acquiring an additional 1,080,561 shares during the last quarter. Carmignac Gestion boosted its stake in Atlassian by 115.8% during the 1st quarter. Carmignac Gestion now owns 2,603,770 shares of the technology company's stock valued at $177,707,000 after purchasing an additional 1,397,402 shares during the last quarter. First Trust Advisors LP boosted its stake in Atlassian by 48.4% during the 1st quarter. First Trust Advisors LP now owns 2,349,842 shares of the technology company's stock valued at $160,377,000 after purchasing an additional 766,922 shares during the last quarter. KBC Group NV increased its holdings in Atlassian by 1,691.2% during the 1st quarter. KBC Group NV now owns 1,440,019 shares of the technology company's stock worth $98,281,000 after purchasing an additional 1,359,624 shares in the last quarter. Finally, SG Americas Securities LLC increased its holdings in Atlassian by 1,516.7% during the 1st quarter. SG Americas Securities LLC now owns 905,629 shares of the technology company's stock worth $61,809,000 after purchasing an additional 849,613 shares in the last quarter. 94.45% of the stock is currently owned by institutional investors.

Atlassian Company Profile

Atlassian Corporation develops collaboration, productivity and workflow-management software for technology, business and enterprise teams. Its products are designed to help organizations plan projects, manage software development, document and share knowledge, provide IT and customer support, and coordinate work across distributed teams.

Its product portfolio includes Jira for project and issue management, Confluence for team collaboration and knowledge sharing, Jira Service Management for IT service and support operations, and Trello for organizing tasks and projects.

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