Atlassian (NASDAQ:TEAM) Shares Down 6.5% After Analyst Downgrade

Key Points

• Atlassian shares fell 6.5% after BMO Capital Markets cut its price target from $105 to $95, though the firm kept an outperform rating.
• Analyst sentiment remains mixed overall: Atlassian has a consensus Moderate Buy rating, with an average target price of $145.26, but some firms have recently trimmed targets or maintained sell views.
• Recent insider activity included stock sales by CFO James Chuong and CRO Brian Duffy, while Atlassian’s latest earnings beat expectations with EPS of $1.75 and revenue of $1.79 billion, up 31.7% year over year.

Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report)'s stock price traded down 6.5% during mid-day trading on Thursday after BMO Capital Markets lowered their price target on the stock from $105.00 to $95.00. BMO Capital Markets currently has an outperform rating on the stock. Atlassian traded as low as $76.33 and last traded at $76.2110. Approximately 2,773,642 shares changed hands during mid-day trading, a decline of 59% from the average session volume of 6,786,564 shares. The stock had previously closed at $81.55.

A number of other research analysts have also commented on TEAM. Sanford C. Bernstein reiterated an "outperform" rating and set a $295.00 price target on shares of Atlassian in a report on Friday, May 1st. KeyCorp dropped their target price on shares of Atlassian from $170.00 to $130.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 1st. Weiss Ratings reiterated a "sell (e+)" rating on shares of Atlassian in a research note on Monday, April 20th. Truist Financial increased their price target on shares of Atlassian from $90.00 to $100.00 and gave the company a "buy" rating in a report on Friday, May 1st. Finally, Zacks Research upgraded shares of Atlassian from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $145.26.

Insider Buying and Selling at Atlassian

In other news, CFO James Chuong sold 8,838 shares of the company's stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $87.75, for a total value of $775,534.50. Following the sale, the chief financial officer owned 288,272 shares of the company's stock, valued at approximately $25,295,868. This represents a 2.97% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Brian Duffy sold 3,000 shares of the stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $89.71, for a total transaction of $269,130.00. Following the sale, the executive owned 227,691 shares of the company's stock, valued at $20,426,159.61. This trade represents a 1.30% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 20,041 shares of company stock valued at $1,801,069 over the last quarter. Corporate insiders own 36.66% of the company's stock.

Institutional Trading of Atlassian

Hedge funds have recently modified their holdings of the company. Carmignac Gestion grew its position in Atlassian by 115.8% during the 1st quarter. Carmignac Gestion now owns 2,603,770 shares of the technology company's stock worth $177,707,000 after acquiring an additional 1,397,402 shares during the last quarter. Western Wealth Management LLC acquired a new stake in Atlassian during the 1st quarter valued at $30,000. Ariadne Wealth Management LP bought a new position in Atlassian in the 1st quarter valued at $202,000. Oddo BHF Asset Management Sas raised its position in Atlassian by 171.3% in the 1st quarter. Oddo BHF Asset Management Sas now owns 289,808 shares of the technology company's stock valued at $19,779,000 after purchasing an additional 182,973 shares during the last quarter. Finally, Bull Harbor Capital LLC acquired a new position in Atlassian in the first quarter worth $614,000. Institutional investors and hedge funds own 94.45% of the company's stock.

Atlassian Trading Down 6.5%

The business has a 50 day simple moving average of $84.69 and a 200 day simple moving average of $100.47. The company has a debt-to-equity ratio of 1.13, a current ratio of 0.70 and a quick ratio of 0.70. The company has a market cap of $19.35 billion, a price-to-earnings ratio of -91.76, a price-to-earnings-growth ratio of 4.61 and a beta of 1.07.

Atlassian (NASDAQ:TEAM - Get Free Report) last announced its earnings results on Thursday, April 30th. The technology company reported $1.75 earnings per share for the quarter, beating analysts' consensus estimates of $1.33 by $0.42. The company had revenue of $1.79 billion during the quarter, compared to analyst estimates of $1.70 billion. Atlassian had a positive return on equity of 6.22% and a negative net margin of 3.50%.The firm's quarterly revenue was up 31.7% compared to the same quarter last year. During the same period last year, the company posted $0.97 earnings per share. As a group, equities analysts forecast that Atlassian Corporation PLC will post 0.81 EPS for the current year.

Atlassian Company Profile

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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