Atlassian (NASDAQ:TEAM) Trading Up 7.3% - Here's Why

Key Points

• Atlassian shares jumped 7.3% intraday to $82.38 (from $76.81) on Thursday, trading slightly below average volume and remaining well under its 50‑day ($115.77) and 200‑day ($145.30) moving averages.
• The company beat quarterly estimates with $1.22 EPS vs. $1.12 expected and revenue of $1.59B (up 23.3% YoY), but still reported a negative net margin and ROE and analysts forecast a fiscal‑year EPS of -0.34.
• Analyst sentiment is mixed: there are 20 Buys, 5 Holds and 2 Sells with a consensus rating of Moderate Buy and a consensus target of $189.32, even as several major firms recently cut price targets.

Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report) shot up 7.3% during mid-day trading on Thursday . The company traded as high as $84.10 and last traded at $82.38. 6,049,452 shares traded hands during mid-day trading, a decline of 6% from the average session volume of 6,451,307 shares. The stock had previously closed at $76.81.

Analyst Ratings Changes

TEAM has been the topic of several research reports. Zacks Research downgraded Atlassian from a "hold" rating to a "strong sell" rating in a research report on Wednesday, February 11th. Citigroup cut their price objective on Atlassian from $210.00 to $160.00 and set a "buy" rating on the stock in a report on Monday, February 9th. Morgan Stanley decreased their target price on Atlassian from $320.00 to $290.00 and set an "overweight" rating for the company in a report on Friday, February 6th. Mizuho dropped their target price on Atlassian from $225.00 to $205.00 and set an "outperform" rating on the stock in a research report on Friday, February 6th. Finally, UBS Group reissued a "neutral" rating and set a $105.00 price target on shares of Atlassian in a research report on Friday, February 6th. Twenty equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $189.32.

Atlassian Price Performance

The stock has a market capitalization of $21.57 billion, a PE ratio of -113.57, a P/E/G ratio of 310.48 and a beta of 0.94. 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's fifty day moving average is $115.77 and its 200-day moving average is $145.30.

Atlassian (NASDAQ:TEAM - Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The technology company reported $1.22 earnings per share for the quarter, beating analysts' consensus estimates of $1.12 by $0.10. Atlassian had a negative net margin of 3.29% and a negative return on equity of 6.33%. The company had revenue of $1.59 billion during the quarter, compared to analysts' expectations of $1.54 billion. During the same quarter in the previous year, the company earned $0.96 earnings per share. The firm's revenue for the quarter was up 23.3% on a year-over-year basis. As a group, equities analysts predict that Atlassian Corporation PLC will post -0.34 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Scott Farquhar sold 7,665 shares of the stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $94.81, for a total transaction of $726,718.65. Following the transaction, the director owned 275,940 shares in the company, valued at $26,161,871.40. This trade represents a 2.70% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Michael Cannon-Brookes sold 7,665 shares of the business's stock in a transaction on Friday, February 6th. The stock was sold at an average price of $94.81, for a total transaction of $726,718.65. Following the completion of 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 position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 405,121 shares of company stock valued at $58,076,519. 36.66% of the stock is owned by insiders.

Institutional Investors Weigh In On Atlassian

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC boosted its position in Atlassian by 291.4% during the fourth quarter. AQR Capital Management LLC now owns 7,749,694 shares of the technology company's stock worth $1,256,535,000 after acquiring an additional 5,769,788 shares during the last quarter. DNB Asset Management AS lifted its stake in Atlassian by 266.6% in the 3rd quarter. DNB Asset Management AS now owns 2,806,888 shares of the technology company's stock worth $448,260,000 after purchasing an additional 2,041,210 shares in the last quarter. Norges Bank acquired a new position in shares of Atlassian during the 4th quarter worth approximately $323,526,000. Morgan Stanley grew its position in shares of Atlassian by 52.4% in the fourth quarter. Morgan Stanley now owns 4,822,007 shares of the technology company's stock valued at $781,841,000 after purchasing an additional 1,657,309 shares in the last quarter. Finally, Artisan Partners Limited Partnership grew its position in shares of Atlassian by 66.3% in the second quarter. Artisan Partners Limited Partnership now owns 3,878,133 shares of the technology company's stock valued at $787,610,000 after purchasing an additional 1,545,546 shares in 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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