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

Key Points

• Atlassian shares opened at $183.95 after closing at $172.70, reflecting a significant pre-market movement before trading at $179.60.
• Multiple analysts have revised their price targets downward, with Barclays setting a new target of $215.00, while the average target across analysts stands at $256.90.
• The company reported quarterly earnings of $0.98 per share, surpassing estimates and indicating 22.3% revenue growth year-over-year.

Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $172.70, but opened at $183.95. Atlassian shares last traded at $179.60, with a volume of 1,150,173 shares.

Analyst Upgrades and Downgrades

TEAM has been the subject of a number of recent analyst reports. Guggenheim initiated coverage on shares of Atlassian in a research note on Thursday. They issued a "buy" rating and a $225.00 price objective for the company. Cantor Fitzgerald decreased their price objective on shares of Atlassian from $256.00 to $240.00 and set an "overweight" rating for the company in a research note on Friday, August 8th. KeyCorp decreased their target price on shares of Atlassian from $275.00 to $250.00 and set an "overweight" rating for the company in a research note on Thursday, July 17th. Wall Street Zen lowered shares of Atlassian from a "buy" rating to a "hold" rating in a research note on Friday, September 5th. Finally, BMO Capital Markets decreased their target price on shares of Atlassian from $225.00 to $200.00 and set an "outperform" rating for the company in a research note on Friday, August 8th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, Atlassian has a consensus rating of "Moderate Buy" and a consensus target price of $255.45.

Atlassian Stock Performance

The firm has a market cap of $45.87 billion, a price-to-earnings ratio of -176.63 and a beta of 0.95. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.22 and a current ratio of 1.22. The firm's 50 day moving average is $182.36 and its 200-day moving average is $204.16.

Atlassian (NASDAQ:TEAM - Get Free Report) last announced its earnings results on Thursday, August 7th. The technology company reported $0.98 EPS for the quarter, topping the consensus estimate of $0.83 by $0.15. The firm had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.36 billion. Atlassian had a negative net margin of 4.92% and a negative return on equity of 14.77%. The business's quarterly revenue was up 22.3% on a year-over-year basis. During the same quarter last year, the firm posted $0.66 EPS. Atlassian has set its Q1 2026 guidance at EPS. FY 2026 guidance at EPS. Sell-side analysts anticipate that Atlassian Corporation PLC will post -0.34 earnings per share for the current fiscal year.

Insider Transactions at Atlassian

In other news, President Anutthara Bharadwaj sold 7,728 shares of the business's stock in a transaction dated Thursday, August 14th. The shares were sold at an average price of $163.43, for a total transaction of $1,262,987.04. Following the transaction, the president owned 182,801 shares in the company, valued at approximately $29,875,167.43. The trade was a 4.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Scott Farquhar sold 7,665 shares of the company's stock in a transaction dated Wednesday, June 25th. The shares were sold at an average price of $199.71, for a total transaction of $1,530,777.15. Following the completion of the sale, the director directly owned 22,995 shares in the company, valued at approximately $4,592,331.45. The trade was a 25.00% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 536,278 shares of company stock worth $100,612,557. 38.55% of the stock is currently owned by company insiders.

Institutional Trading of Atlassian

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Norges Bank acquired a new position in Atlassian in the second quarter valued at about $377,794,000. Artisan Partners Limited Partnership boosted its position in Atlassian by 66.3% in the second quarter. Artisan Partners Limited Partnership now owns 3,878,133 shares of the technology company's stock valued at $787,610,000 after buying an additional 1,545,546 shares in the last quarter. Nuveen LLC acquired a new position in Atlassian in the first quarter valued at about $327,665,000. AQR Capital Management LLC boosted its position in Atlassian by 145.6% in the first quarter. AQR Capital Management LLC now owns 1,715,287 shares of the technology company's stock valued at $354,858,000 after buying an additional 1,016,902 shares in the last quarter. Finally, DNB Asset Management AS boosted its position in Atlassian by 2,676.8% in the second quarter. DNB Asset Management AS now owns 765,678 shares of the technology company's stock valued at $155,502,000 after buying an additional 738,104 shares in the last quarter. Institutional investors own 94.45% of the company's stock.

About Atlassian

Atlassian Corporation, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. Its product portfolio includes Jira Software and Jira Work Management, a project management system that connects technical and business teams so they can better plan, organize, track and manage their work and projects; Confluence, a connected workspace that organizes knowledge across all teams to move work forward; and Trello, a collaboration and organization product that captures and adds structure to fluid and fast-forming work for teams.