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

Key Points

• Atlassian shares gapped up ahead of trading, opening at $114.18 after closing at $107.61, and were last trading near $111.73 on heavy volume.
• Recent analyst action was mixed but generally positive: several firms maintained or adjusted Buy/Outperform-type ratings, and the consensus target price is about $145.63.
• The company’s latest earnings beat expectations, with $1.75 EPS versus $1.33 expected and 31.7% revenue growth year over year, though insiders have recently sold shares and the stock still carries a negative net margin.

Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report)'s share price gapped up prior to trading on Monday . The stock had previously closed at $107.61, but opened at $114.18. Atlassian shares last traded at $111.7280, with a volume of 2,524,962 shares changing hands.

Analysts Set New Price Targets

Several analysts have recently weighed in on the company. BNP Paribas Exane started coverage on Atlassian in a research report on Monday, March 16th. They set an "outperform" rating and a $95.00 target price for the company. TD Cowen raised their price target on shares of Atlassian from $85.00 to $105.00 and gave the stock a "hold" rating in a research note on Friday, May 1st. Mizuho decreased their price objective on shares of Atlassian from $185.00 to $145.00 and set an "outperform" rating for the company in a report on Tuesday, April 14th. Piper Sandler lowered their price objective on shares of Atlassian from $200.00 to $175.00 and set an "overweight" rating for the company in a research report on Friday, May 1st. Finally, Wall Street Zen lowered shares of Atlassian from a "strong-buy" rating to a "buy" rating in a research report on Saturday. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $145.63.

Atlassian Price Performance

The company has a market cap of $29.03 billion, a PE ratio of -137.76, a price-to-earnings-growth ratio of 6.10 and a beta of 1.07. 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 has a 50 day simple moving average of $75.55 and a 200-day simple moving average of $107.83.

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 the consensus estimate of $1.33 by $0.42. The company had revenue of $1.79 billion during the quarter, compared to the consensus estimate of $1.70 billion. Atlassian had a negative net margin of 3.50% and a positive return on equity of 6.22%. Atlassian's revenue was up 31.7% compared to the same quarter last year. During the same period last year, the firm earned $0.97 earnings per share. As a group, research analysts predict that Atlassian Corporation PLC will post 0.81 earnings per share for the current fiscal year.

Insider Buying and Selling at Atlassian

In other news, CFO James Chuong sold 8,838 shares of the business's stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $87.75, for a total transaction of $775,534.50. Following the sale, the chief financial officer directly owned 288,272 shares of the company's stock, valued at $25,295,868. The trade was a 2.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Brian Duffy sold 1,986 shares of the company's stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $87.75, for a total value of $174,271.50. Following the completion of the transaction, the executive directly owned 236,841 shares in the company, valued at approximately $20,782,797.75. The trade was a 0.83% decrease in their ownership of the stock. 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. Insiders have sold 10,891 shares of company stock valued at $955,683 over the last quarter. Insiders own 36.66% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of TEAM. Vanguard Group Inc. increased its holdings in Atlassian by 0.3% in the 4th quarter. Vanguard Group Inc. now owns 18,541,267 shares of the technology company's stock worth $3,006,281,000 after buying an additional 61,706 shares during the period. Baillie Gifford & Co. boosted its holdings in shares of Atlassian by 3.9% in the 4th quarter. Baillie Gifford & Co. now owns 8,431,802 shares of the technology company's stock valued at $1,367,132,000 after acquiring an additional 316,276 shares during the last quarter. AQR Capital Management LLC boosted its holdings in shares of Atlassian by 291.4% in the 4th quarter. AQR Capital Management LLC now owns 7,749,694 shares of the technology company's stock valued at $1,256,535,000 after acquiring an additional 5,769,788 shares during the last quarter. Pictet Asset Management Holding SA increased its stake in shares of Atlassian by 27.4% in the first 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 period. Finally, Morgan Stanley raised its stake in shares of Atlassian by 52.4% during the 4th quarter. Morgan Stanley now owns 4,822,007 shares of the technology company's stock valued at $781,841,000 after buying an additional 1,657,309 shares during the last quarter. 94.45% of the stock is currently owned by hedge funds and other institutional investors.

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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