Atlassian (NASDAQ:TEAM) Upgraded to Hold at Zacks Research

Key Points

• Atlassian has been upgraded from a "strong sell" to a "hold" rating by Zacks Research, reflecting a potential shift in market sentiment towards the company.
• Analysts have varying opinions on the stock, with target prices ranging from $200.00 to $315.00 and a consensus rating of "Moderate Buy" along with an average target price of $256.90.
• The company's recent quarterly earnings report indicated a revenue increase of 22.3% compared to the previous year, with earnings per share exceeding expectations by $0.15.

Atlassian (NASDAQ:TEAM - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Wednesday,Zacks.com reports.

Several other equities research analysts have also commented on TEAM. Wells Fargo & Company cut their target price on Atlassian from $330.00 to $315.00 and set an "overweight" rating on the stock in a research report on Friday, May 2nd. Barclays cut their price target on Atlassian from $244.00 to $215.00 and set an "overweight" rating on the stock in a report on Friday, August 8th. BMO Capital Markets lowered their price objective on shares of Atlassian from $225.00 to $200.00 and set an "outperform" rating for the company in a research note on Friday, August 8th. Capital One Financial lowered shares of Atlassian from an "overweight" rating to an "equal weight" rating and set a $211.00 target price on the stock. in a research note on Wednesday, July 16th. Finally, Stephens decreased their price target on shares of Atlassian from $221.00 to $202.00 and set an "equal weight" rating for the company in a research note on Monday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $256.90.

Atlassian Stock Performance

NASDAQ:TEAM opened at $164.59 on Wednesday. The company has a market capitalization of $43.21 billion, a PE ratio of -166.25 and a beta of 0.96. Atlassian has a fifty-two week low of $154.07 and a fifty-two week high of $326.00. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.26 and a current ratio of 1.22. The company has a 50 day simple moving average of $191.19 and a two-hundred day simple moving average of $219.12.

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

Insiders Place Their Bets

In other Atlassian news, CEO Michael Cannon-Brookes sold 7,948 shares of the firm's stock in a transaction on Tuesday, June 3rd. The shares were sold at an average price of $208.43, for a total value of $1,656,601.64. Following the transaction, the chief executive officer directly owned 23,844 shares of the company's stock, valued at approximately $4,969,804.92. This trade represents a 25.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, President Anutthara Bharadwaj sold 7,728 shares of the business's stock in a transaction dated Thursday, August 14th. The stock was sold at an average price of $163.43, for a total transaction of $1,262,987.04. Following 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 ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 510,134 shares of company stock worth $99,681,446. Insiders own 38.55% of the company's stock.

Hedge Funds Weigh In On Atlassian

Large investors have recently bought and sold shares of the stock. Clean Yield Group lifted its position in shares of Atlassian by 372.0% during the first quarter. Clean Yield Group now owns 118 shares of the technology company's stock valued at $25,000 after purchasing an additional 93 shares in the last quarter. Capco Asset Management LLC purchased a new position in shares of Atlassian in the 2nd quarter worth approximately $25,000. Colonial Trust Co SC grew its holdings in shares of Atlassian by 100.0% in the fourth quarter. Colonial Trust Co SC now owns 138 shares of the technology company's stock valued at $34,000 after acquiring an additional 69 shares in the last quarter. Smithfield Trust Co increased its position in shares of Atlassian by 90.7% during the first quarter. Smithfield Trust Co now owns 164 shares of the technology company's stock valued at $34,000 after acquiring an additional 78 shares during the last quarter. Finally, Geneos Wealth Management Inc. boosted its position in Atlassian by 447.2% in 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 last quarter. 94.45% of the stock is currently owned by institutional investors.

Atlassian Company Profile

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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