Atlassian (NASDAQ:TEAM) Upgraded to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Atlassian from "hold" to "buy", joining many analysts (20 Buys, 5 Holds, 2 Sells) and contributing to a MarketBeat consensus of "Moderate Buy" with an average price target of $189.32.
• Atlassian beat quarterly estimates (EPS $1.22 vs. $1.12; revenue $1.59B, +23.3% YoY) but still reports a negative net margin and negative return on equity, while the stock trades around $83.62—well below its 52‑week high of $251.
• Company insiders have sold roughly 389,791 shares (~$55.6M) in the last three months, reducing their holdings, though insiders still own about 36.66% of the company.

Atlassian (NASDAQ:TEAM - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday.

A number of other equities research analysts have also issued reports on TEAM. KeyCorp reduced their target price on Atlassian from $210.00 to $170.00 and set an "overweight" rating on the stock in a research note on Friday, February 6th. Oppenheimer cut their price target on Atlassian from $275.00 to $150.00 and set an "outperform" rating for the company in a report on Friday, February 6th. BMO Capital Markets set a $130.00 price objective on Atlassian and gave the company an "outperform" rating in a research report on Friday, February 6th. Robert W. Baird set a $140.00 price objective on Atlassian in a research note on Friday, February 6th. Finally, Wells Fargo & Company dropped their price objective on Atlassian from $216.00 to $155.00 and set an "overweight" rating for the company in a research report on Friday, February 6th. Twenty research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Atlassian currently has a consensus rating of "Moderate Buy" and an average price target of $189.32.

Atlassian Price Performance

Shares of NASDAQ TEAM opened at $83.62 on Friday. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 0.62. The company's 50-day moving average price is $112.62 and its 200 day moving average price is $144.27. Atlassian has a 52 week low of $67.85 and a 52 week high of $251.00. The stock has a market cap of $22.05 billion, a price-to-earnings ratio of -116.14, a PEG ratio of 326.84 and a beta of 0.94.

Atlassian (NASDAQ:TEAM - Get Free Report) last announced its quarterly earnings results on Thursday, February 5th. The technology company reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate 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 for the quarter, compared to the consensus estimate of $1.54 billion. During the same quarter in the prior year, the firm earned $0.96 earnings per share. The company's revenue for the quarter was up 23.3% compared to the same quarter last year. As a group, research analysts forecast that Atlassian will post -0.34 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Scott Farquhar sold 7,665 shares of the company's stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $161.79, for a total value of $1,240,120.35. Following the completion of the transaction, the director directly owned 99,645 shares in the company, valued at approximately $16,121,564.55. This represents a 7.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Michael Cannon-Brookes sold 7,665 shares of the stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $161.79, for a total value of $1,240,120.35. Following the transaction, the chief executive officer owned 107,310 shares in the company, valued at $17,361,684.90. This trade represents a 6.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 389,791 shares of company stock worth $55,616,361. Corporate insiders own 36.66% of the company's stock.

Institutional Trading of Atlassian

Several hedge funds and other institutional investors have recently added to or reduced their stakes in TEAM. Physician Wealth Advisors Inc. boosted its position in shares of Atlassian by 60.4% in the third quarter. Physician Wealth Advisors Inc. now owns 162 shares of the technology company's stock worth $26,000 after acquiring an additional 61 shares during the last quarter. GAMMA Investing LLC boosted its holdings in shares of Atlassian by 12.0% in the 4th quarter. GAMMA Investing LLC now owns 615 shares of the technology company's stock valued at $100,000 after purchasing an additional 66 shares during the last quarter. Snowden Capital Advisors LLC grew its stake in shares of Atlassian by 1.6% during the 2nd quarter. Snowden Capital Advisors LLC now owns 4,464 shares of the technology company's stock valued at $907,000 after buying an additional 71 shares during the period. Financial Perspectives Inc grew its stake in shares of Atlassian by 11.7% during the 4th quarter. Financial Perspectives Inc now owns 718 shares of the technology company's stock valued at $116,000 after buying an additional 75 shares during the period. Finally, Cetera Investment Advisers increased its holdings in shares of Atlassian by 0.3% during the 2nd quarter. Cetera Investment Advisers now owns 24,808 shares of the technology company's stock worth $5,038,000 after buying an additional 79 shares during the last quarter. Hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.