Wall Street Zen Downgrades Atlassian (NASDAQ:TEAM) to Hold

Key Points

• Atlassian's stock rating has been downgraded from "buy" to "hold" by Wall Street Zen.
• BMO Capital Markets has lowered its price target for the company from $225.00 to $200.00, while Zacks has upgraded it to a "hold" rating.
• Despite the downgrade, Atlassian reported strong quarterly earnings with a 22.3% increase in revenue year-over-year, amounting to $1.38 billion.

Wall Street Zen downgraded shares of Atlassian (NASDAQ:TEAM - Free Report) from a buy rating to a hold rating in a research report sent to investors on Friday.

Several other analysts have also recently weighed in on the stock. Truist Financial set a $230.00 price objective on shares of Atlassian in a research note on Friday, August 8th. Citigroup decreased their price objective on shares of Atlassian from $300.00 to $240.00 and set a "buy" rating on the stock in a research note on Monday, August 18th. Raymond James Financial decreased their price objective on shares of Atlassian from $300.00 to $250.00 and set an "outperform" rating on the stock in a research note on Friday, August 8th. UBS Group reissued a "hold" rating on shares of Atlassian in a research note on Monday, July 7th. Finally, Mizuho decreased their price target on shares of Atlassian from $265.00 to $235.00 and set an "outperform" rating on the stock in a research note on Friday, August 8th. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, Atlassian presently has a consensus rating of "Moderate Buy" and a consensus price target of $256.90.

Atlassian Price Performance

Shares of Atlassian stock traded up $9.66 during trading on Friday, hitting $182.36. 3,624,122 shares of the company's stock traded hands, compared to its average volume of 2,396,498. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.22 and a quick ratio of 1.22. The firm's fifty day moving average price is $185.03 and its 200 day moving average price is $206.04. Atlassian has a twelve month low of $154.07 and a twelve month high of $326.00. The company has a market cap of $47.84 billion, a PE ratio of -184.20 and a beta of 0.95.

Atlassian (NASDAQ:TEAM - Get Free Report) last issued its earnings results on Thursday, August 7th. The technology company reported $0.98 earnings per share for the quarter, beating the consensus estimate of $0.83 by $0.15. The business had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.36 billion. Atlassian had a negative net margin of 4.92% and a negative return on equity of 14.77%. The firm's revenue was up 22.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.66 EPS. Atlassian has set its Q1 2026 guidance at EPS. FY 2026 guidance at EPS. Analysts forecast that Atlassian will post -0.34 earnings per share for the current year.

Insiders Place Their Bets

In other Atlassian news, Director Scott Farquhar sold 7,665 shares of the stock in a transaction on Friday, September 5th. The shares were sold at an average price of $171.90, for a total value of $1,317,613.50. Following the sale, the director directly owned 130,305 shares in the company, valued at approximately $22,399,429.50. This trade represents a 5.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Scott Belsky bought 1,455 shares of the business's stock in a transaction on Thursday, August 28th. The stock was purchased at an average price of $173.00 per share, for a total transaction of $251,715.00. Following the completion of the acquisition, the director owned 1,455 shares of the company's stock, valued at approximately $251,715. This trade represents a ∞ increase in their position. The disclosure for this purchase can be found here. Over the last three months, insiders have sold 520,948 shares of company stock worth $98,346,783. Company insiders own 38.55% of the company's stock.

Institutional Investors Weigh In On Atlassian

Several hedge funds have recently bought and sold shares of the company. Osaic Holdings Inc. raised its holdings in Atlassian by 12.8% in the second quarter. Osaic Holdings Inc. now owns 8,082 shares of the technology company's stock worth $1,641,000 after purchasing an additional 916 shares during the period. Orion Porfolio Solutions LLC lifted its position in Atlassian by 27.2% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 4,460 shares of the technology company's stock valued at $906,000 after acquiring an additional 953 shares in the last quarter. Stance Capital LLC bought a new stake in Atlassian in the 2nd quarter valued at $1,329,000. Marex Group plc bought a new stake in Atlassian in the 2nd quarter valued at $309,000. Finally, State of Wyoming lifted its position in Atlassian by 59.7% in the 2nd quarter. State of Wyoming now owns 444 shares of the technology company's stock valued at $90,000 after acquiring an additional 166 shares in the last quarter. 94.45% of the stock is currently owned by institutional investors and hedge funds.

About Atlassian

Atlassian Corporation, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. Its product portfolio includes Jira Software and Jira Work Management, a project management system that connects technical and business teams so they can better plan, organize, track and manage their work and projects; Confluence, a connected workspace that organizes knowledge across all teams to move work forward; and Trello, a collaboration and organization product that captures and adds structure to fluid and fast-forming work for teams.