Capital International Investors Sells 1,614,158 Shares of Atlassian Corporation PLC $TEAM

Key Points

• Capital International Investors cut its Atlassian stake by 45.3% in the fourth quarter, selling 1,614,158 shares and leaving it with 1,946,366 shares valued at about $315.6 million.
• Despite that sale, institutional ownership remains very high, with hedge funds and asset managers holding 94.45% of Atlassian’s stock. Several firms, including Vanguard and Pictet, also increased their positions.
• Atlassian reported strong quarterly results, with earnings of $1.75 per share and revenue of $1.79 billion, both beating estimates. However, analysts still have a mixed but generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $145.63.

Capital International Investors lowered its holdings in Atlassian Corporation PLC (NASDAQ:TEAM - Free Report) by 45.3% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,946,366 shares of the technology company's stock after selling 1,614,158 shares during the period. Capital International Investors owned about 0.74% of Atlassian worth $315,618,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also added to or reduced their stakes in TEAM. DNB Asset Management AS grew its position in Atlassian by 266.6% in the third quarter. DNB Asset Management AS now owns 2,806,888 shares of the technology company's stock valued at $448,260,000 after purchasing an additional 2,041,210 shares in the last quarter. Norges Bank bought a new position in Atlassian in the fourth quarter valued at $323,526,000. Pictet Asset Management Holding SA grew its position in Atlassian by 38.1% in the fourth quarter. Pictet Asset Management Holding SA now owns 3,950,852 shares of the technology company's stock valued at $640,628,000 after purchasing an additional 1,090,787 shares in the last quarter. Vanguard Group Inc. grew its position in Atlassian by 6.0% in the third quarter. Vanguard Group Inc. now owns 18,479,561 shares of the technology company's stock valued at $2,951,186,000 after purchasing an additional 1,049,483 shares in the last quarter. Finally, Voyager Global Management LP grew its position in Atlassian by 181.8% in the third quarter. Voyager Global Management LP now owns 1,550,000 shares of the technology company's stock valued at $247,535,000 after purchasing an additional 1,000,000 shares in the last quarter. Institutional investors own 94.45% of the company's stock.

Analysts Set New Price Targets

A number of research analysts recently weighed in on TEAM shares. Citigroup decreased their target price on shares of Atlassian from $160.00 to $110.00 and set a "buy" rating for the company in a research report on Friday, May 1st. BNP Paribas Exane assumed coverage on shares of Atlassian in a research report on Monday, March 16th. They issued an "outperform" rating and a $95.00 price objective for the company. TD Cowen lifted their price objective on shares of Atlassian from $85.00 to $105.00 and gave the company a "hold" rating in a research report on Friday, May 1st. Wolfe Research reissued an "outperform" rating and issued a $100.00 price objective on shares of Atlassian in a research report on Thursday, March 12th. Finally, Robert W. Baird set a $120.00 price objective on shares of Atlassian in a research report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Atlassian has a consensus rating of "Moderate Buy" and an average price target of $145.63.

Atlassian Stock Performance

Shares of TEAM opened at $99.47 on Monday. The firm has a 50-day moving average of $78.95 and a 200-day moving average of $106.17. Atlassian Corporation PLC has a one year low of $56.01 and a one year high of $222.59. The company has a market cap of $25.24 billion, a PE ratio of -119.84, a price-to-earnings-growth ratio of 5.64 and a beta of 1.07. The company has a debt-to-equity ratio of 1.13, a current ratio of 0.70 and a quick ratio of 0.70.

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

Insider Activity

In related news, CFO James Chuong sold 8,838 shares of Atlassian stock in a transaction dated 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 sale, the chief financial officer owned 288,272 shares of the company's stock, valued at approximately $25,295,868. The trade was a 2.97% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Brian Duffy sold 1,986 shares of Atlassian stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $87.75, for a total transaction of $174,271.50. Following the sale, the executive directly owned 236,841 shares of the company's stock, valued at $20,782,797.75. The trade was a 0.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 10,891 shares of company stock valued at $955,683 in the last ninety days. 36.66% of the stock is currently owned by insiders.

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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