Atlassian (NASDAQ:TEAM) Shares Up 9.7% - Here's Why

Key Points

• Atlassian shares jumped 9.7% intraday to about $80 after the company beat quarterly estimates, reporting $1.22 EPS (vs. $1.12 expected) and revenue of $1.59B, up 23.3% year‑over‑year.
• Analysts have trimmed some price targets recently, but the stock holds a consensus "Moderate Buy" rating with an average target of $189.32 (20 Buys, 5 Holds, 2 Sells).
• Insiders have been net sellers—CEO Michael Cannon‑Brookes and others sold shares, with 435,781 shares (~$62.8M) sold in the last three months—while institutional ownership remains very high at 94.45%.

Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report) shares rose 9.7% during trading on Thursday . The stock traded as high as $78.59 and last traded at $80.2590. Approximately 1,284,624 shares were traded during trading, a decline of 79% from the average daily volume of 6,214,059 shares. The stock had previously closed at $73.19.

Analysts Set New Price Targets

TEAM has been the topic of a number of recent research reports. KeyCorp dropped their price target on Atlassian from $210.00 to $170.00 and set an "overweight" rating on the stock in a research report on Friday, February 6th. Zacks Research cut shares of Atlassian from a "hold" rating to a "strong sell" rating in a report on Wednesday, February 11th. Canaccord Genuity Group set a $185.00 target price on shares of Atlassian in a research report on Friday, February 6th. Morgan Stanley lowered their price target on shares of Atlassian from $320.00 to $290.00 and set an "overweight" rating for the company in a research report on Friday, February 6th. Finally, TD Cowen dropped their price objective on shares of Atlassian from $205.00 to $175.00 and set a "hold" rating on the stock in a research note on Tuesday, January 20th. Twenty analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Atlassian has a consensus rating of "Moderate Buy" and an average target price of $189.32.

Atlassian Trading Up 6.5%

The company's 50 day simple moving average is $124.37 and its two-hundred day simple moving average is $148.30. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 0.62. The company has a market capitalization of $20.56 billion, a price-to-earnings ratio of -108.32, a P/E/G ratio of 59.42 and a beta of 0.88.

Atlassian (NASDAQ:TEAM - Get Free Report) last issued its quarterly earnings data on Thursday, February 5th. The technology company reported $1.22 EPS for the quarter, beating the consensus estimate of $1.12 by $0.10. Atlassian had a negative return on equity of 6.33% and a negative net margin of 3.29%.The firm had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.54 billion. During the same quarter in the prior year, the business posted $0.96 EPS. The business's revenue for the quarter was up 23.3% compared to the same quarter last year. As a group, research analysts anticipate that Atlassian Corporation PLC will post -0.34 earnings per share for the current fiscal year.

Insider Buying and Selling at Atlassian

In other Atlassian news, CEO Michael Cannon-Brookes sold 7,665 shares of the company's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $94.81, for a total transaction of $726,718.65. Following the transaction, the chief executive officer owned 275,940 shares in the company, valued at approximately $26,161,871.40. This represents a 2.70% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CRO Brian Duffy sold 1,222 shares of the firm's stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $81.35, for a total transaction of $99,409.70. Following the completion of the transaction, the executive directly owned 124,332 shares of the company's stock, valued at approximately $10,114,408.20. This represents a 0.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 435,781 shares of company stock valued at $62,755,235. Insiders own 36.66% of the company's stock.

Hedge Funds Weigh In On Atlassian

Hedge funds have recently made changes to their positions in the company. Physician Wealth Advisors Inc. grew its stake in Atlassian by 60.4% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 162 shares of the technology company's stock valued at $26,000 after purchasing an additional 61 shares during the last quarter. GAMMA Investing LLC lifted its holdings in shares of Atlassian by 12.0% during the fourth quarter. GAMMA Investing LLC now owns 615 shares of the technology company's stock worth $100,000 after purchasing an additional 66 shares during the period. Snowden Capital Advisors LLC boosted its position in Atlassian by 1.6% in the second quarter. Snowden Capital Advisors LLC now owns 4,464 shares of the technology company's stock valued at $907,000 after buying an additional 71 shares during the last quarter. Financial Perspectives Inc boosted its position in Atlassian by 11.7% in the fourth quarter. Financial Perspectives Inc now owns 718 shares of the technology company's stock valued at $116,000 after buying an additional 75 shares during the last quarter. Finally, Cetera Investment Advisers increased its holdings in Atlassian by 0.3% in the 2nd quarter. Cetera Investment Advisers now owns 24,808 shares of the technology company's stock worth $5,038,000 after buying an additional 79 shares during the period. 94.45% of the stock is owned by institutional investors and hedge funds.

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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