Atlassian (NASDAQ:TEAM) Stock Price Up 7.1% - Should You Buy?

Key Points

• Shares of Atlassian jumped 7.1% on Monday to about $95.16, trading as high as $95.54 on roughly 5.6 million shares (about 19% below average volume).
• Atlassian beat the quarter’s expectations with $1.75 EPS vs. $1.33 expected and revenue of $1.79B vs. $1.70B (revenue +31.7% YoY), though the company still posts a negative net margin and a negative P/E.
• Analysts are broadly positive—the consensus rating is a “Moderate Buy” with a $144.67 consensus target (21 Buys, 6 Holds, 1 Sell)—but firm targets and recent revisions vary, including Morgan Stanley cutting its target to $120.

Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report)'s share price traded up 7.1% during trading on Monday . The stock traded as high as $95.54 and last traded at $95.1630. 5,603,100 shares were traded during trading, a decline of 19% from the average session volume of 6,948,800 shares. The stock had previously closed at $88.88.

Analyst Ratings Changes

Several equities research analysts recently commented on the company. Wolfe Research reaffirmed an "outperform" rating and set a $100.00 target price on shares of Atlassian in a research note on Thursday, March 12th. TD Cowen increased their price target on Atlassian from $85.00 to $105.00 and gave the stock a "hold" rating in a report on Friday. BTIG Research set a $120.00 price objective on shares of Atlassian and gave the stock a "buy" rating in a research report on Friday. Morgan Stanley lowered their price objective on shares of Atlassian from $290.00 to $120.00 and set an "overweight" rating for the company in a research note on Thursday, April 16th. Finally, Cantor Fitzgerald boosted their target price on shares of Atlassian from $98.00 to $107.00 and gave the company an "overweight" rating in a research report on Friday. 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 company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $144.67.

Atlassian Trading Up 4.9%

The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.89 and a current ratio of 0.89. The business has a 50 day moving average of $70.97 and a two-hundred day moving average of $117.63. The firm has a market capitalization of $24.60 billion, a price-to-earnings ratio of -112.38 and a beta of 0.90.

Atlassian (NASDAQ:TEAM - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The technology company reported $1.75 EPS for the quarter, beating the consensus estimate of $1.33 by $0.42. Atlassian had a positive return on equity of 5.62% and a negative net margin of 3.50%.The firm had revenue of $1.79 billion during the quarter, compared to the consensus estimate of $1.70 billion. During the same quarter in the previous year, the company posted $0.97 earnings per share. The company's quarterly revenue was up 31.7% on a year-over-year basis. Equities analysts predict that Atlassian Corporation PLC will post -0.01 EPS for the current year.

Insider Buying and Selling at Atlassian

In other news, CRO Brian Duffy sold 1,222 shares of Atlassian stock in a transaction dated Thursday, February 19th. The shares were 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 in the company, valued at $10,114,408.20. This trade represents a 0.97% 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. Also, CEO Michael Cannon-Brookes sold 7,665 shares of the business's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $94.81, for a total transaction of $726,718.65. Following the sale, the chief executive officer directly owned 275,940 shares of the company's stock, valued at approximately $26,161,871.40. The trade was a 2.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 36,673 shares of company stock worth $3,554,392 in the last ninety days. 36.66% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Atlassian

Large investors have recently added to or reduced their stakes in the business. SBI Securities Co. Ltd. boosted its holdings in Atlassian by 50.7% during the 3rd quarter. SBI Securities Co. Ltd. now owns 40,546 shares of the technology company's stock worth $6,475,000 after acquiring an additional 13,643 shares during the last quarter. OFI Invest Asset Management raised its holdings in shares of Atlassian by 16.3% in the fourth quarter. OFI Invest Asset Management now owns 254,551 shares of the technology company's stock valued at $41,273,000 after purchasing an additional 35,682 shares during the last quarter. Baillie Gifford & Co. raised its holdings in shares of Atlassian by 3.9% in the fourth quarter. Baillie Gifford & Co. now owns 8,431,802 shares of the technology company's stock valued at $1,367,132,000 after purchasing an additional 316,276 shares during the last quarter. Exane Asset Management lifted its position in shares of Atlassian by 419.9% during the fourth quarter. Exane Asset Management now owns 31,363 shares of the technology company's stock valued at $5,085,000 after purchasing an additional 25,330 shares in the last quarter. Finally, Intech Investment Management LLC lifted its position in shares of Atlassian by 180.3% during the third quarter. Intech Investment Management LLC now owns 140,984 shares of the technology company's stock valued at $22,515,000 after purchasing an additional 90,692 shares in the last quarter. Institutional investors own 94.45% of the company's stock.

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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