Rakuten Investment Management Inc. Makes New Investment in Atlassian Corporation PLC $TEAM

Key Points

• Rakuten Investment Management opened a new Atlassian position, purchasing 10,379 shares valued at approximately $1.83 million in the third quarter. Institutional investors collectively own 94.45% of the company’s stock.
• Atlassian’s fiscal Q1 revenue grew 23.7% year over year to $1.77 billion, and adjusted EPS of $1.65 beat the $1.39 consensus. Cloud revenue rose 30.5%, with AI-related product adoption also gaining momentum.
• Investors face concerns about slowing cloud growth: Atlassian forecast 27% growth next quarter, below Q1’s 30.5%, while several analysts cut price targets despite retaining positive ratings.

Rakuten Investment Management Inc. bought a new position in Atlassian Corporation PLC (NASDAQ:TEAM - Free Report) in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 10,379 shares of the technology company's stock, valued at approximately $1,826,000.

Other large investors have also recently added to or reduced their stakes in the company. Provenance Wealth Advisors LLC raised its position in Atlassian by 5,921.4% in the 3rd quarter. Provenance Wealth Advisors LLC now owns 843 shares of the technology company's stock valued at $151,000 after buying an additional 829 shares during the last quarter. GRIMES & Co WEALTH MANAGEMENT LLC lifted its stake in Atlassian by 7.9% in the 3rd quarter. GRIMES & Co WEALTH MANAGEMENT LLC now owns 59,407 shares of the technology company's stock valued at $10,651,000 after acquiring an additional 4,345 shares in the last quarter. Trek Financial LLC acquired a new position in Atlassian during the 3rd quarter worth approximately $3,747,000. Greenleaf Trust boosted its position in Atlassian by 3.7% during the 3rd quarter. Greenleaf Trust now owns 3,225 shares of the technology company's stock worth $578,000 after acquiring an additional 114 shares during the last quarter. Finally, Austin Asset Management Co Inc bought a new position in shares of Atlassian during the 3rd quarter worth approximately $201,000. Institutional investors own 94.45% of the company's stock.

Key Atlassian News

Here are the key news stories impacting Atlassian this week:

• Positive Sentiment: Fiscal Q1 revenue rose 23.7% year over year to $1.77 billion, while adjusted EPS of $1.65 topped the $1.39 consensus. Cloud revenue grew 30.5%, and the company reported stronger margins and free cash flow. Atlassian Q1 results
• Positive Sentiment: AI-related adoption showed momentum: Teamwork Collection customers grew sevenfold year over year, and remaining performance obligations increased 44%. Atlassian also guided to $7.5 billion in FY2027 revenue, above the $7.4 billion consensus. Q1 earnings call highlights
• Positive Sentiment: Piper Sandler raised its price target to $190 and kept an “overweight” rating, signaling continued optimism despite the post-earnings concerns. Piper Sandler target update
• Negative Sentiment: The main concern is deceleration: Atlassian expects next-quarter cloud growth of 27%, below Q1’s 30.5%, and increased its full-year cloud growth outlook only modestly, from 25.5% to 26%. Management cited timing-related Data Center revenue effects, dampening the impact of the quarterly beat. Cloud growth outlook
• Negative Sentiment: Several firms cut price targets, including Truist ($250 to $200), Wells Fargo ($270 to $200), and Oppenheimer ($275 to $240), though they maintained positive ratings. These reductions underscore investor concerns about growth expectations after the results. Truist rating update

Insider Activity

In related news, CAO Gene Liu sold 337 shares of the firm's stock in a transaction on Monday, October 12th. The shares were sold at an average price of $210.00, for a total value of $70,770.00. Following the completion of the transaction, the chief accounting officer directly owned 55,531 shares of the company's stock, valued at approximately $11,661,510. This trade represents a 0.60% 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. Also, CRO Brian Duffy sold 1,851 shares of the business's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $172.45, for a total transaction of $319,204.95. Following the transaction, the executive owned 218,223 shares in the company, valued at approximately $37,632,556.35. The trade was a 0.84% decrease in their ownership of the stock. 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. In the last 90 days, insiders sold 22,475 shares of company stock valued at $3,822,643. 37.63% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on TEAM shares. Wells Fargo & Company lowered their price objective on shares of Atlassian from $270.00 to $200.00 and set an "overweight" rating on the stock in a report on Friday. Raymond James Financial set a $180.00 target price on shares of Atlassian in a report on Friday, August 7th. Truist Financial reaffirmed a "buy" rating and issued a $200.00 target price (down from $250.00) on shares of Atlassian in a research report on Friday. KeyCorp lifted their price target on shares of Atlassian from $185.00 to $235.00 and gave the company an "overweight" rating in a research note on Monday, October 19th. Finally, Royal Bank Of Canada lifted their price target on shares of Atlassian from $215.00 to $235.00 and gave the company an "outperform" rating in a research note on Monday, October 12th. Twenty-four equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $210.96.

Atlassian Stock Performance

Shares of NASDAQ TEAM opened at $153.68 on Friday. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.78 and a current ratio of 0.78. The stock has a 50 day moving average price of $196.05 and a 200 day moving average price of $119.57. The stock has a market capitalization of $38.90 billion, a PE ratio of 426.90, a price-to-earnings-growth ratio of 16.39 and a beta of 1.16. Atlassian Corporation PLC has a 52 week low of $56.01 and a 52 week high of $229.96.

Atlassian (NASDAQ:TEAM - Get Free Report) last posted its quarterly earnings results on Thursday, November 5th. The technology company reported $1.65 earnings per share for the quarter, topping the consensus estimate of $1.39 by $0.26. The firm had revenue of $1.77 billion for the quarter, compared to analyst estimates of $1.71 billion. Atlassian had a return on equity of 31.64% and a net margin of 1.28%. The business's quarterly revenue was up 23.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.04 EPS. Analysts predict that Atlassian Corporation PLC will post 0.66 earnings per share for the current fiscal year.

Atlassian Profile

Atlassian Corporation develops collaboration and productivity software for software, IT and business teams. Its products help organizations plan and track work, manage software development and support services, and share information across teams.

Its product portfolio includes Jira for project and issue tracking, Confluence for team documentation and collaboration, Jira Service Management for IT and other service teams, Trello for visual work management, and Bitbucket for code collaboration.

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