Atlassian (NASDAQ:TEAM) Shares Gap Down Following Analyst Downgrade

Key Points

• Atlassian shares gapped down after KeyCorp cut its price target from $130 to $115, opening below the prior close before later trading near $86.
• Despite the downgrade, analyst sentiment remains mostly positive: Atlassian still has an average rating of “Moderate Buy” with a consensus target price of $144.70.
• Recent company activity included insider stock sales by CFO James Chuong and CRO Brian Duffy, while the company’s latest earnings beat estimates with $1.75 EPS on $1.79 billion in revenue.

Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report)'s share price gapped down before the market opened on Thursday after KeyCorp lowered their price target on the stock from $130.00 to $115.00. The stock had previously closed at $85.47, but opened at $81.36. KeyCorp currently has an overweight rating on the stock. Atlassian shares last traded at $86.1430, with a volume of 227,505 shares trading hands.

Several other brokerages have also issued reports on TEAM. Guggenheim set a $115.00 target price on Atlassian in a research note on Thursday, April 9th. Sanford C. Bernstein reiterated an "outperform" rating on shares of Atlassian in a research note on Monday, June 29th. Robert W. Baird set a $120.00 price objective on Atlassian in a report on Friday, May 1st. Zacks Research cut Atlassian from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th. Finally, Barclays upped their price objective on shares of Atlassian from $106.00 to $112.00 and gave the company an "overweight" rating in a report on Thursday, May 7th. Twenty-one analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $144.70.

Insiders Place Their Bets

In other news, CFO James Chuong sold 8,838 shares of Atlassian stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $87.75, for a total transaction of $775,534.50. Following the completion of the sale, the chief financial officer owned 288,272 shares in the company, valued at approximately $25,295,868. This trade represents a 2.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 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 Atlassian stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $89.71, for a total value of $269,130.00. Following the sale, the executive directly owned 227,691 shares of the company's stock, valued at approximately $20,426,159.61. This trade represents a 1.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 20,041 shares of company stock worth $1,801,069 in the last quarter. 36.66% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. GAMMA Investing LLC lifted its holdings in Atlassian by 12.0% in the 4th quarter. GAMMA Investing LLC now owns 615 shares of the technology company's stock worth $100,000 after buying an additional 66 shares during the period. Snowden Capital Advisors LLC raised its holdings in shares of Atlassian by 1.6% during the second quarter. Snowden Capital Advisors LLC now owns 4,464 shares of the technology company's stock valued at $907,000 after acquiring an additional 71 shares in the last quarter. Financial Perspectives Inc lifted its stake in Atlassian by 11.7% in the fourth quarter. Financial Perspectives Inc now owns 718 shares of the technology company's stock worth $116,000 after acquiring an additional 75 shares during the period. Slow Capital Inc. lifted its stake in Atlassian by 0.3% in the fourth quarter. Slow Capital Inc. now owns 33,486 shares of the technology company's stock worth $5,429,000 after acquiring an additional 84 shares during the period. Finally, Verdence Capital Advisors LLC boosted its holdings in Atlassian by 3.0% in the fourth quarter. Verdence Capital Advisors LLC now owns 3,079 shares of the technology company's stock valued at $499,000 after acquiring an additional 89 shares in the last quarter. 94.45% of the stock is owned by hedge funds and other institutional investors.

Atlassian Trading Up 1.4%

The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 1.13. The firm's fifty day moving average is $87.37 and its two-hundred day moving average is $94.88. The firm has a market cap of $22.00 billion, a P/E ratio of -104.21, a PEG ratio of 4.98 and a beta of 1.11.

Atlassian (NASDAQ:TEAM - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The technology company reported $1.75 earnings per share for the quarter, beating the consensus estimate of $1.33 by $0.42. Atlassian had a positive return on equity of 6.22% and a negative net margin of 3.50%.The business had revenue of $1.79 billion for the quarter, compared to analysts' expectations of $1.70 billion. During the same period in the previous year, the firm posted $0.97 EPS. The business's revenue was up 31.7% on a year-over-year basis. Analysts predict that Atlassian Corporation PLC will post 0.81 earnings per share for the current fiscal 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.