Atlassian (NASDAQ:TEAM) Shares Gap Up - Should You Buy?

Key Points

• Atlassian shares gapped up premarket from $66.00 to $69.78 and last traded near $68.63 on volume of about 1.76 million shares, giving the company a market cap of roughly $18.0 billion.
• Analyst consensus is a Moderate Buy (20 Buys, 6 Holds, 1 Sell) with an average price target of $159.37, although several firms recently trimmed their targets (e.g., KeyCorp, BTIG, Oppenheimer).
• The company beat quarterly estimates (EPS $1.22 vs $1.12; revenue $1.59B, +23.3% y/y) but still shows negative net margin and a projected -0.34 EPS for the fiscal year, while insiders have sold roughly 143,983 shares in the last 90 days.

Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report) gapped up prior to trading on Thursday . The stock had previously closed at $66.00, but opened at $69.78. Atlassian shares last traded at $68.6320, with a volume of 1,757,239 shares traded.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. KeyCorp decreased their price objective on Atlassian from $170.00 to $130.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 1st. BTIG Research decreased their price objective on Atlassian from $220.00 to $140.00 and set a "buy" rating on the stock in a research note on Friday, February 6th. UBS Group reissued a "neutral" rating and set a $105.00 target price on shares of Atlassian in a research note on Friday, February 6th. BMO Capital Markets set a $130.00 target price on Atlassian and gave the company an "outperform" rating in a research note on Friday, February 6th. Finally, Oppenheimer decreased their target price on Atlassian from $275.00 to $150.00 and set an "outperform" rating on the stock in a research note on Friday, February 6th. Twenty analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Atlassian currently has an average rating of "Moderate Buy" and an average price target of $159.37.

Atlassian Price Performance

The firm has a market cap of $18.01 billion, a PE ratio of -94.57 and a beta of 0.99. The firm has a fifty day simple moving average of $74.89 and a two-hundred day simple moving average of $124.18. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.89 and a current ratio of 0.89.

Atlassian (NASDAQ:TEAM - Get Free Report) last released its quarterly earnings results on Friday, February 6th. The technology company reported $1.22 earnings per share for the quarter, beating the consensus estimate of $1.12 by $0.10. The business had revenue of $1.59 billion during the quarter, compared to analysts' expectations of $1.54 billion. Atlassian had a negative return on equity of 6.33% and a negative net margin of 3.29%.The firm's revenue for the quarter was up 23.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.96 EPS. Equities analysts predict that Atlassian Corporation PLC will post -0.34 EPS for the current fiscal year.

Insider Activity at Atlassian

In other Atlassian news, CEO Michael Cannon-Brookes sold 7,665 shares of the firm's stock in a transaction that occurred on Wednesday, January 28th. The stock was sold at an average price of $135.44, for a total transaction of $1,038,147.60. Following the completion of the transaction, the chief executive officer owned 321,930 shares in the company, valued at $43,602,199.20. This trade represents a 2.33% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Scott Farquhar sold 7,665 shares of the firm's stock in a transaction that occurred on Friday, January 30th. The shares were sold at an average price of $119.15, for a total value of $913,284.75. Following the transaction, the director owned 314,265 shares of the company's stock, valued at $37,444,674.75. This represents a 2.38% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 143,983 shares of company stock valued at $16,938,095 in the last 90 days. 36.66% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Atlassian

A number of institutional investors and hedge funds have recently modified their holdings of the stock. BI Asset Management Fondsmaeglerselskab A S boosted its holdings in shares of Atlassian by 22.6% in the 1st quarter. BI Asset Management Fondsmaeglerselskab A S now owns 13,081 shares of the technology company's stock worth $893,000 after purchasing an additional 2,414 shares during the period. Rockefeller Capital Management L.P. boosted its holdings in shares of Atlassian by 29.1% in the 4th quarter. Rockefeller Capital Management L.P. now owns 8,056 shares of the technology company's stock worth $1,306,000 after purchasing an additional 1,818 shares during the period. DUTCH ASSET Corp purchased a new position in shares of Atlassian in the 4th quarter worth approximately $448,000. Larry Mathis Financial Planning LLC purchased a new position in shares of Atlassian in the 4th quarter worth approximately $364,000. Finally, Corient Private Wealth LLC boosted its holdings in shares of Atlassian by 4.2% in the 4th quarter. Corient Private Wealth LLC now owns 8,602 shares of the technology company's stock worth $1,395,000 after purchasing an additional 344 shares during the period. Hedge funds and other institutional investors own 94.45% of the company's stock.

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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