Atlassian (NASDAQ:TEAM) Shares Up 6.8% - Here's Why

Key Points

• Atlassian shares rose 6.8% after trading as high as $85.63, though volume was well below average at about 1.95 million shares.
• Analyst sentiment remains constructive overall: several firms adjusted ratings and price targets, and the stock carries a Moderate Buy consensus with an average target of $138.50.
• The company’s latest earnings beat expectations, with EPS of $1.75 versus $1.33 expected and revenue of $1.79 billion, up 31.7% year over year.

Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report)'s share price was up 6.8% on Friday . The stock traded as high as $85.63 and last traded at $85.6150. Approximately 1,945,063 shares traded hands during mid-day trading, a decline of 69% from the average session volume of 6,342,486 shares. The stock had previously closed at $80.15.

Analyst Upgrades and Downgrades

A number of research firms have commented on TEAM. Truist Financial upped their price target on Atlassian from $90.00 to $100.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Citizens Jmp reissued a "market perform" rating on shares of Atlassian in a research note on Wednesday, July 1st. Zacks Research cut Atlassian from a "strong-buy" rating to a "hold" rating in a report on Monday, June 29th. Mizuho reduced their price target on shares of Atlassian from $185.00 to $145.00 and set an "outperform" rating on the stock in a research report on Tuesday, April 14th. Finally, Robert W. Baird set a $120.00 price objective on shares of Atlassian in a research note on Friday, May 1st. Twenty-one research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $138.50.

Atlassian Price Performance

The company has a 50 day moving average of $89.11 and a 200 day moving average of $89.36. The company has a debt-to-equity ratio of 1.13, a quick ratio of 0.70 and a current ratio of 0.70. The stock has a market capitalization of $21.92 billion, a price-to-earnings ratio of -104.10, a PEG ratio of 5.97 and a beta of 1.11.

Atlassian (NASDAQ:TEAM - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The technology company reported $1.75 earnings per share (EPS) 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 during the quarter, compared to analysts' expectations of $1.70 billion. During the same quarter last year, the business posted $0.97 EPS. The business's quarterly revenue was up 31.7% compared to the same quarter last year. As a group, equities research analysts anticipate that Atlassian Corporation PLC will post 0.81 EPS for the current year.

Insider Buying and Selling

In related news, CFO James Chuong sold 8,838 shares of the stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $87.75, for a total value of $775,534.50. Following the transaction, the chief financial officer owned 288,272 shares of the company's stock, valued at $25,295,868. This represents a 2.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, 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 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 $20,426,159.61. This trade represents a 1.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 20,041 shares of company stock worth $1,801,069. Insiders own 36.66% of the company's stock.

Institutional Investors Weigh In On Atlassian

Hedge funds and other institutional investors have recently made changes to their positions in the business. MV Capital Management Inc. purchased a new position in Atlassian in the fourth quarter valued at approximately $25,000. MassMutual Private Wealth & Trust FSB lifted its position in shares of Atlassian by 139.2% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 378 shares of the technology company's stock worth $29,000 after buying an additional 220 shares during the last quarter. Western Wealth Management LLC purchased a new stake in shares of Atlassian during the 1st quarter worth approximately $30,000. State of Wyoming boosted its holdings in shares of Atlassian by 65.7% in the 1st quarter. State of Wyoming now owns 449 shares of the technology company's stock valued at $31,000 after buying an additional 178 shares in the last quarter. Finally, Basepoint Wealth LLC purchased a new position in shares of Atlassian in the 4th quarter valued at $32,000. Institutional investors and hedge funds own 94.45% of the company's stock.

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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