Atlassian (NASDAQ:TEAM) Stock Price Up 8.4% - Still a Buy?

Key Points

• Stock up 8.4% — Atlassian shares jumped 8.4% to about $64.71 on Wednesday, with roughly 4.27 million shares traded, about 33% below average volume.
• Analysts trimmed price targets but remain broadly positive: consensus is a "Moderate Buy" with an average target of $169 (20 Buys, 6 Holds, 1 Sell).
• Quarterly results beat estimates with revenue up 23.3% and EPS topping forecasts, but the company remains unprofitable (negative net margin and ROE), and insiders have recently sold shares.

Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report)'s share price was up 8.4% on Wednesday . The stock traded as high as $64.19 and last traded at $64.7060. Approximately 4,271,913 shares traded hands during trading, a decline of 33% from the average daily volume of 6,373,657 shares. The stock had previously closed at $59.71.

Analysts Set New Price Targets

TEAM has been the subject of several analyst reports. Citigroup decreased their price objective on shares of Atlassian from $210.00 to $160.00 and set a "buy" rating for the company in a research note on Monday, February 9th. Barclays cut their target price on Atlassian from $215.00 to $165.00 and set an "overweight" rating on the stock in a research note on Friday, February 6th. Wolfe Research reaffirmed an "outperform" rating and set a $100.00 price target on shares of Atlassian in a research report on Thursday, March 12th. Canaccord Genuity Group dropped their price target on Atlassian from $185.00 to $150.00 and set a "buy" rating on the stock in a report on Wednesday. Finally, BNP Paribas Exane began coverage on Atlassian in a research report on Monday, March 16th. They issued an "outperform" rating and a $95.00 price objective on the stock. Twenty investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $169.00.

Atlassian Trading Up 9.0%

The company has a debt-to-equity ratio of 0.62, a current ratio of 0.89 and a quick ratio of 0.89. The stock has a market capitalization of $17.16 billion, a PE ratio of -90.50 and a beta of 0.99. The stock's 50 day simple moving average is $75.67 and its two-hundred day simple moving average is $124.59.

Atlassian (NASDAQ:TEAM - Get Free Report) last issued its quarterly earnings results on Friday, February 6th. The technology company reported $1.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.12 by $0.10. The company had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.54 billion. Atlassian had a negative net margin of 3.29% and a negative return on equity of 6.33%. Atlassian's quarterly revenue was up 23.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.96 EPS. On average, sell-side analysts expect that Atlassian Corporation PLC will post -0.34 EPS for the current year.

Insiders Place Their Bets

In other Atlassian news, CTO Rajeev Bashyam Rajan sold 3,072 shares of the business's stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $81.35, for a total value of $249,907.20. Following the sale, the chief technology officer directly owned 212,916 shares in the company, valued at $17,320,716.60. The trade was a 1.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Joseph Leo Binz sold 1,653 shares of the company's stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $81.35, for a total value of $134,471.55. Following the transaction, the chief financial officer directly owned 208,639 shares in the company, valued at $16,972,782.65. This represents a 0.79% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 143,983 shares of company stock valued at $16,938,095. Company insiders own 36.66% of the company's stock.

Hedge Funds Weigh In On Atlassian

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Physician Wealth Advisors Inc. boosted its position in Atlassian by 60.4% during the third quarter. Physician Wealth Advisors Inc. now owns 162 shares of the technology company's stock worth $26,000 after purchasing an additional 61 shares during the period. GAMMA Investing LLC boosted its position in 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% during the second quarter. Snowden Capital Advisors LLC now owns 4,464 shares of the technology company's stock worth $907,000 after purchasing an additional 71 shares during the period. Financial Perspectives Inc boosted its position in Atlassian by 11.7% during the fourth quarter. Financial Perspectives Inc now owns 718 shares of the technology company's stock worth $116,000 after purchasing an additional 75 shares during the period. Finally, ABN Amro Investment Solutions boosted its position in Atlassian by 3.4% during the third quarter. ABN Amro Investment Solutions now owns 2,452 shares of the technology company's stock worth $392,000 after purchasing an additional 80 shares during the period. 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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