Atlassian (NASDAQ:TEAM) Shares Down 3.1% on Insider Selling

Key Points

• Atlassian shares fell 3.1% to $169.49 after insiders sold stock, with trading volume down 95% from the average. The sales included executives Gene Liu, Brian Duffy and James Chuong, with some transactions made to cover tax obligations on vested equity awards.
• Wall Street remains broadly optimistic: 24 analysts rate Atlassian a Buy, four a Hold and one a Sell, producing a “Moderate Buy” consensus and an average price target of $177.23.
• Atlassian reported stronger-than-expected quarterly results, with earnings of $1.87 per share versus the $1.50 consensus and revenue of $1.77 billion versus $1.66 billion expected. Revenue increased 27.6% year over year.

Shares of Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report) fell 3.1% during mid-day trading on Friday after an insider sold shares in the company. The company traded as low as $168.01 and last traded at $169.49. 336,050 shares changed hands during mid-day trading, a decline of 95% from the average daily volume of 6,261,089 shares. The stock had previously closed at $174.91.

Specifically, CAO Gene Liu sold 1,125 shares of Atlassian stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $175.00, for a total value of $196,875.00. Following the completion of the transaction, the chief accounting officer owned 56,807 shares in the company, valued at approximately $9,941,225. The trade was a 1.94% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CRO Brian Duffy sold 1,851 shares of the business's stock in a transaction 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 transaction, the executive directly owned 218,223 shares in the company, valued at approximately $37,632,556.35. This represents a 0.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In other news, CFO James Chuong sold 9,054 shares of the stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $172.45, for a total transaction of $1,561,362.30. Following the sale, the chief financial officer owned 279,218 shares in the company, valued at approximately $48,151,144.10. This represents a 3.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Wall Street Analysts Forecast Growth

TEAM has been the subject of a number of research analyst reports. UBS Group lifted their price target on Atlassian from $95.00 to $160.00 and gave the company a "neutral" rating in a report on Friday, August 7th. Cantor Fitzgerald restated an "overweight" rating and issued a $126.00 price objective on shares of Atlassian in a research report on Monday, August 3rd. Guggenheim boosted their target price on shares of Atlassian from $115.00 to $165.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Wall Street Zen lowered shares of Atlassian from a "strong-buy" rating to a "buy" rating in a research report on Saturday, May 30th. Finally, Morgan Stanley increased their price target on shares of Atlassian from $120.00 to $180.00 and gave the company an "overweight" rating in a research note on Friday, August 7th. Twenty-four analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $177.23.

Atlassian Stock Performance

The firm has a fifty day moving average of $104.18 and a 200-day moving average of $88.91. The company has a quick ratio of 0.70, a current ratio of 0.78 and a debt-to-equity ratio of 0.93. The firm has a market cap of $43.22 billion, a P/E ratio of -896.42, a PEG ratio of 13.69 and a beta of 1.05.

Atlassian (NASDAQ:TEAM - Get Free Report) last announced its quarterly earnings data on Friday, August 7th. The technology company reported $1.87 earnings per share for the quarter, topping the consensus estimate of $1.50 by $0.37. The firm had revenue of $1.77 billion during the quarter, compared to analysts' expectations of $1.66 billion. Atlassian had a positive return on equity of 20.99% and a negative net margin of 0.82%.The company's quarterly revenue was up 27.6% compared to the same quarter last year. During the same period in the previous year, the business posted $0.98 EPS. Research analysts predict that Atlassian Corporation PLC will post 0.94 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Atlassian

Several large investors have recently bought and sold shares of the business. MV Capital Management Inc. bought a new stake in shares of Atlassian during the 4th quarter valued at $25,000. Manning & Napier Advisors LLC bought a new position in shares of Atlassian in the 2nd quarter worth $27,000. MassMutual Private Wealth & Trust FSB boosted its position in shares of Atlassian by 139.2% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 378 shares of the technology company's stock worth $29,000 after purchasing an additional 220 shares during the last quarter. Western Wealth Management LLC acquired a new stake in shares of Atlassian during the first quarter worth $30,000. Finally, State of Wyoming grew its stake in shares of Atlassian by 65.7% during the first quarter. State of Wyoming now owns 449 shares of the technology company's stock worth $31,000 after purchasing an additional 178 shares during the period. 94.45% of the stock is currently owned by institutional investors and hedge funds.

About Atlassian

Atlassian Corporation Plc is a software company headquartered in Sydney, Australia, best known for developing collaboration, project management and software development tools. Founded in 2002 by Mike Cannon-Brookes and Scott Farquhar, Atlassian grew from a small engineering-focused team into a publicly traded company after its initial public offering in 2015. The company serves a global customer base that spans small teams to large enterprises across technology, financial services, government and other sectors.

Atlassian's product portfolio centers on tools designed to help teams plan, build and support software and business processes.

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