Atlassian (NASDAQ:TEAM) Stock Price Down 5% - Here's Why

Key Points

• Atlassian shares fell 5% in mid-day trading, hitting as low as $92.36 after closing at $96.43 the prior session, with trading volume far below average.
• Analyst sentiment remains mostly positive despite recent price-target cuts from firms like KeyCorp, Bank of America and UBS; the stock still carries a “Moderate Buy” consensus and an average target of $138.50.
• Recent quarterly results beat expectations, with EPS of $1.75 versus $1.33 expected and revenue of $1.79 billion, up 31.7% year over year, while insiders also sold shares in recent months.

Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report)'s stock price dropped 5% during mid-day trading on Tuesday . The company traded as low as $92.36 and last traded at $91.5650. 627,233 shares were traded during trading, a decline of 90% from the average session volume of 6,396,168 shares. The stock had previously closed at $96.43.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on TEAM. KeyCorp dropped their price target on shares of Atlassian from $130.00 to $115.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 8th. Bank of America reduced their price objective on Atlassian from $110.00 to $105.00 and set a "neutral" rating for the company in a research report on Thursday, July 16th. Raymond James Financial set a $130.00 target price on Atlassian in a research report on Friday, May 1st. Sanford C. Bernstein reaffirmed an "outperform" rating on shares of Atlassian in a research note on Monday, June 29th. Finally, UBS Group reduced their price target on Atlassian from $105.00 to $95.00 and set a "neutral" rating for the company in a report on Friday, May 1st. Twenty-one investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Atlassian currently has an average rating of "Moderate Buy" and an average price target of $138.50.

Atlassian Stock Performance

The company has a market cap of $22.88 billion, a P/E ratio of -108.82, a P/E/G ratio of 6.08 and a beta of 1.11. The firm has a 50 day moving average price of $88.92 and a 200-day moving average price of $90.93. The company has a debt-to-equity ratio of 1.13, a quick ratio of 0.70 and a current ratio of 0.70.

Atlassian (NASDAQ:TEAM - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The technology company reported $1.75 EPS for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $1.70 billion. During the same quarter in the prior year, the firm posted $0.97 EPS. The firm's revenue for the quarter was up 31.7% on a year-over-year basis. On average, research analysts predict that Atlassian Corporation PLC will post 0.81 EPS for the current year.

Insider Buying and Selling

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 value of $775,534.50. Following the completion of the sale, the chief financial officer directly owned 288,272 shares in the company, valued at approximately $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 can be accessed 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 the company's stock in a transaction on Friday, June 12th. The stock was sold at an average price of $89.71, for a total transaction of $269,130.00. Following the sale, the executive directly owned 227,691 shares of the company's stock, valued at approximately $20,426,159.61. This represents a 1.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In 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.

Hedge Funds Weigh In On Atlassian

Large investors have recently made changes to their positions in the business. E. Ohman J or Asset Management AB grew its holdings in Atlassian by 30.0% in the 2nd quarter. E. Ohman J or Asset Management AB now owns 6,059 shares of the technology company's stock valued at $471,000 after buying an additional 1,400 shares during the last quarter. Fluent Financial LLC bought a new stake in shares of Atlassian in the second quarter valued at approximately $2,239,000. FNY Investment Advisers LLC boosted its position in shares of Atlassian by 1,503.1% in the second quarter. FNY Investment Advisers LLC now owns 10,420 shares of the technology company's stock valued at $810,000 after acquiring an additional 9,770 shares during the period. Elevation Wealth Partners LLC acquired a new stake in shares of Atlassian in the second quarter worth $39,000. Finally, PensionDanmark Pensionsforsikringsaktieselskab grew its stake in shares of Atlassian by 4.7% in the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 65,441 shares of the technology company's stock worth $5,091,000 after acquiring an additional 2,908 shares during the last quarter. 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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