Atlassian (NASDAQ:TEAM) Trading Up 6.1% - What's Next?

Key Points

• Atlassian's stock price increased by 6.1%, closing at $168.41, with trading volume rising by 7% compared to the average session.
• Several analysts have downgraded their price targets for Atlassian, with the new average consensus target price at $248.74.
• The company reported quarterly earnings of $0.98 per share, exceeding analyst expectations of $0.83, with revenues up 22.3% year-over-year.

Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report)'s share price traded up 6.1% on Tuesday . The company traded as high as $167.42 and last traded at $168.41. 2,606,075 shares changed hands during trading, an increase of 7% from the average session volume of 2,429,952 shares. The stock had previously closed at $158.79.

Analysts Set New Price Targets

A number of research analysts have commented on the company. BMO Capital Markets lowered their price target on Atlassian from $225.00 to $200.00 and set an "outperform" rating for the company in a research report on Friday, August 8th. Raymond James Financial decreased their target price on Atlassian from $300.00 to $250.00 and set an "outperform" rating for the company in a report on Friday, August 8th. Mizuho dropped their price target on Atlassian from $265.00 to $235.00 and set an "outperform" rating for the company in a research note on Friday, August 8th. Canaccord Genuity Group reduced their price objective on shares of Atlassian from $255.00 to $230.00 and set a "buy" rating on the stock in a research report on Friday, August 8th. Finally, Guggenheim started coverage on shares of Atlassian in a research report on Thursday, September 11th. They issued a "buy" rating and a $225.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Atlassian presently has an average rating of "Moderate Buy" and a consensus target price of $248.74.

Atlassian Stock Up 6.3%

The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.22 and a current ratio of 1.22. The stock's 50-day moving average price is $164.27 and its two-hundred day moving average price is $189.94. The stock has a market capitalization of $44.29 billion, a PE ratio of -170.47 and a beta of 0.92.

Atlassian (NASDAQ:TEAM - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The technology company reported $0.98 earnings per share for the quarter, topping analysts' consensus estimates of $0.83 by $0.15. Atlassian had a negative net margin of 4.92% and a negative return on equity of 14.77%. The business had revenue of $1.38 billion for the quarter, compared to analysts' expectations of $1.36 billion. During the same quarter in the prior year, the company earned $0.66 earnings per share. The business's revenue was up 22.3% compared to the same quarter last year. Atlassian has set its Q1 2026 guidance at EPS. FY 2026 guidance at EPS. As a group, analysts expect that Atlassian Corporation PLC will post -0.34 EPS for the current fiscal year.

Insider Activity

In related news, CEO Michael Cannon-Brookes sold 7,665 shares of the firm's stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $185.43, for a total transaction of $1,421,320.95. Following the completion of the sale, the chief executive officer owned 306,600 shares of the company's stock, valued at $56,852,838. This trade represents a 2.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, President Anutthara Bharadwaj sold 7,728 shares of Atlassian stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $163.43, for a total value of $1,262,987.04. Following the completion of the sale, the president directly owned 182,801 shares of the company's stock, valued at approximately $29,875,167.43. The trade was a 4.06% decrease in their position. The disclosure for this sale can be found here. Insiders sold 566,938 shares of company stock worth $96,312,185 over the last three months. 36.66% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Atlassian

Institutional investors and hedge funds have recently modified their holdings of the company. One Wealth Advisors LLC grew its position in shares of Atlassian by 56.7% during the 2nd quarter. One Wealth Advisors LLC now owns 4,436 shares of the technology company's stock valued at $901,000 after acquiring an additional 1,606 shares during the period. Allianz Asset Management GmbH increased its holdings in shares of Atlassian by 28.6% in the 2nd quarter. Allianz Asset Management GmbH now owns 102,194 shares of the technology company's stock worth $20,755,000 after buying an additional 22,701 shares during the last quarter. Farther Finance Advisors LLC lifted its stake in shares of Atlassian by 37.7% in the 1st quarter. Farther Finance Advisors LLC now owns 369 shares of the technology company's stock valued at $80,000 after purchasing an additional 101 shares during the last quarter. Cambridge Investment Research Advisors Inc. increased its position in Atlassian by 42.2% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 4,240 shares of the technology company's stock valued at $900,000 after acquiring an additional 1,259 shares during the last quarter. Finally, Principal Financial Group Inc. lifted its stake in Atlassian by 350.1% in the first quarter. Principal Financial Group Inc. now owns 51,900 shares of the technology company's stock worth $11,014,000 after purchasing an additional 40,369 shares during the last quarter. 94.45% of the stock is currently owned by hedge funds and other institutional investors.

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.

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