Barclays Cuts Atlassian (NASDAQ:TEAM) Price Target to $215.00

Key Points

• Barclays has reduced its target price for Atlassian (NASDAQ:TEAM) from $244.00 to $215.00, while maintaining an "overweight" rating, indicating a potential upside of 27.48% from the current stock price.
• Other analysts have also lowered their price targets for Atlassian, with Morgan Stanley targeting $320.00 and Oppenheimer at $275.00, reflecting a trend in revised expectations across the board.
• Atlassian reported earnings of $0.98 per share in its recent quarterly results, exceeding estimates, but continues to face challenges with a negative net margin of 8.66%.

Atlassian (NASDAQ:TEAM - Get Free Report) had its price objective cut by investment analysts at Barclays from $244.00 to $215.00 in a report released on Friday,Benzinga reports. The firm currently has an "overweight" rating on the technology company's stock. Barclays's price target would suggest a potential upside of 27.93% from the stock's previous close.

Several other analysts also recently commented on TEAM. UBS Group reaffirmed a "hold" rating on shares of Atlassian in a report on Monday, July 7th. Macquarie reduced their target price on shares of Atlassian from $270.00 to $250.00 and set an "outperform" rating for the company in a report on Friday, May 2nd. Canaccord Genuity Group reduced their target price on shares of Atlassian from $300.00 to $255.00 and set a "buy" rating for the company in a report on Friday, May 2nd. KeyCorp reduced their target price on shares of Atlassian from $275.00 to $250.00 and set an "overweight" rating for the company in a report on Thursday, July 17th. Finally, Wells Fargo & Company reduced their target price on shares of Atlassian from $330.00 to $315.00 and set an "overweight" rating for the company in a report on Friday, May 2nd. Five equities research analysts have rated the stock with a hold rating, nineteen have given a buy rating and one has assigned a strong buy 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 $260.67.

Atlassian Stock Performance

Shares of Atlassian stock traded down $2.94 during trading on Friday, hitting $168.06. 7,902,491 shares of the stock were exchanged, compared to its average volume of 2,193,492. The stock has a market capitalization of $44.12 billion, a price-to-earnings ratio of -169.76 and a beta of 0.96. The company has a fifty day moving average price of $199.40 and a 200-day moving average price of $225.85. Atlassian has a 1-year low of $137.27 and a 1-year high of $326.00. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.72.

Atlassian (NASDAQ:TEAM - Get Free Report) last released 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 for the quarter, compared to analyst estimates of $1.36 billion. Atlassian had a negative net margin of 4.92% and a negative return on equity of 15.19%. Atlassian's revenue for the quarter was up 22.3% compared to the same quarter last year. During the same period in the previous year, the business earned $0.66 EPS. As a group, equities analysts predict that Atlassian will post -0.34 EPS for the current fiscal year.

Insiders Place Their Bets

In other Atlassian news, Director Scott Farquhar sold 7,665 shares of the firm's stock in a transaction on Wednesday, August 6th. The shares were sold at an average price of $185.81, for a total value of $1,424,233.65. Following the completion of the sale, the director directly owned 291,270 shares in the company, valued at approximately $54,120,878.70. This trade represents a 2.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Michael Cannon-Brookes sold 7,665 shares of the firm's stock in a transaction on Wednesday, August 6th. The stock was sold at an average price of $185.81, for a total transaction of $1,424,233.65. Following the completion of the sale, the chief executive officer owned 291,270 shares of the company's stock, valued at $54,120,878.70. The trade was a 2.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 522,111 shares of company stock valued at $106,345,639 over the last 90 days. Corporate insiders own 38.55% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in TEAM. Voya Investment Management LLC lifted its stake in shares of Atlassian by 17,941.0% in the fourth quarter. Voya Investment Management LLC now owns 2,172,854 shares of the technology company's stock valued at $528,693,000 after buying an additional 2,160,810 shares in the last quarter. Nuveen LLC bought a new position in shares of Atlassian in the first quarter valued at $327,665,000. Durable Capital Partners LP lifted its stake in shares of Atlassian by 499.7% in the fourth quarter. Durable Capital Partners LP now owns 1,575,546 shares of the technology company's stock valued at $383,456,000 after buying an additional 1,312,820 shares in the last quarter. BNP Paribas Financial Markets bought a new position in shares of Atlassian in the fourth quarter valued at $298,327,000. Finally, AQR Capital Management LLC lifted its stake in shares of Atlassian by 145.6% in the first quarter. AQR Capital Management LLC now owns 1,715,287 shares of the technology company's stock valued at $354,858,000 after buying an additional 1,016,902 shares in the last quarter. 94.45% of the stock is owned by 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.