Atlassian (NASDAQ:TEAM) Trading Up 8.1% - What's Next?

Key Points

• Atlassian shares rose 8.1% on Friday, trading as high as $101.19 after closing at $93.29 the prior day, though volume was well below average.
• Analyst sentiment remains mostly positive despite some target cuts: the stock has a consensus “Moderate Buy” rating with an average price target of $145.63.
• Recent earnings were stronger than expected, with EPS of $1.75 and revenue of $1.79 billion, both beating estimates and rising 31.7% year over year.

Shares of Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report) were up 8.1% during trading on Friday . The stock traded as high as $101.19 and last traded at $100.8480. Approximately 2,862,376 shares changed hands during trading, a decline of 59% from the average daily volume of 6,968,875 shares. The stock had previously closed at $93.29.

Wall Street Analyst Weigh In

Several analysts have commented on TEAM shares. Wells Fargo & Company dropped their target price on shares of Atlassian from $155.00 to $120.00 and set an "overweight" rating on the stock in a report on Tuesday, March 17th. Jefferies Financial Group set a $150.00 target price on shares of Atlassian in a report on Friday, February 6th. Weiss Ratings restated a "sell (e+)" rating on shares of Atlassian in a report on Monday, April 20th. Cantor Fitzgerald raised their target price on shares of Atlassian from $98.00 to $107.00 and gave the stock an "overweight" rating in a report on Friday, May 1st. Finally, Oppenheimer raised their target price on shares of Atlassian from $100.00 to $110.00 and gave the stock an "outperform" rating in a report on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $145.63.

Atlassian Price Performance

The company's fifty day moving average is $74.87 and its 200 day moving average is $108.19. The firm has a market cap of $26.49 billion, a price-to-earnings ratio of -125.75, a PEG ratio of 5.05 and a beta of 0.90. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 1.13.

Atlassian (NASDAQ:TEAM - Get Free Report) last announced its earnings results on Thursday, April 30th. The technology company reported $1.75 EPS for the quarter, topping the consensus estimate of $1.33 by $0.42. Atlassian had a negative net margin of 3.50% and a positive return on equity of 6.22%. The business had revenue of $1.79 billion during the quarter, compared to analysts' expectations of $1.70 billion. During the same quarter in the prior year, the company posted $0.97 earnings per share. The firm's revenue was up 31.7% on a year-over-year basis. On average, equities research analysts predict that Atlassian Corporation PLC will post 0.81 EPS for the current year.

Insider Buying and Selling at Atlassian

In related news, CRO Brian Duffy sold 1,986 shares of the firm's stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $87.75, for a total value of $174,271.50. Following the completion of the transaction, the executive directly owned 236,841 shares of the company's stock, valued at approximately $20,782,797.75. This trade represents a 0.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO James Chuong sold 8,838 shares of the firm's stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $87.75, for a total transaction of $775,534.50. Following the completion of the transaction, the chief financial officer directly owned 288,272 shares of the company's stock, valued at $25,295,868. This represents a 2.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 10,891 shares of company stock valued at $955,683 over the last three months. 36.66% of the stock is owned by company insiders.

Hedge Funds Weigh In On Atlassian

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TEAM. NewEdge Advisors LLC boosted its position in Atlassian by 71.6% during the first quarter. NewEdge Advisors LLC now owns 5,432 shares of the technology company's stock worth $1,153,000 after purchasing an additional 2,267 shares during the period. Empowered Funds LLC boosted its position in Atlassian by 39.5% during the first quarter. Empowered Funds LLC now owns 4,689 shares of the technology company's stock worth $995,000 after purchasing an additional 1,328 shares during the period. Focus Partners Wealth boosted its position in Atlassian by 32.6% during the first quarter. Focus Partners Wealth now owns 4,122 shares of the technology company's stock worth $875,000 after purchasing an additional 1,014 shares during the period. Geneos Wealth Management Inc. boosted its position in Atlassian by 447.2% during the first quarter. Geneos Wealth Management Inc. now owns 197 shares of the technology company's stock worth $42,000 after purchasing an additional 161 shares during the period. Finally, Sivia Capital Partners LLC boosted its position in Atlassian by 27.5% during the second quarter. Sivia Capital Partners LLC now owns 1,873 shares of the technology company's stock worth $380,000 after purchasing an additional 404 shares during the period. 94.45% of the stock is owned by institutional investors.

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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