Mizuho Has Lowered Expectations for Atlassian (NASDAQ:TEAM) Stock Price

Key Points

• Mizuho cut its price target on Atlassian to $225 (from $245) but kept an "outperform" rating, a target that implies roughly a 90.6% upside from the recent close.
• Analyst coverage is broadly positive with a consensus rating of Moderate Buy and a $235.38 consensus target (individual targets range ~ $200–$262), while TEAM trades near $118, well below its 52‑week high of $326 and shows negative margins and a negative P/E.
• Insider selling has been notable: founders Michael Cannon‑Brookes and Scott Farquhar each sold 7,665 shares at about $120.82 on Jan. 16, part of 551,049 shares (~$85.7M) sold by insiders in the last 90 days, though insiders still own ~36.66% of the company.

Atlassian (NASDAQ:TEAM - Get Free Report) had its price objective decreased by investment analysts at Mizuho from $245.00 to $225.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has an "outperform" rating on the technology company's stock. Mizuho's price target points to a potential upside of 90.58% from the company's previous close.

A number of other research analysts also recently issued reports on the stock. Jefferies Financial Group set a $262.00 target price on shares of Atlassian in a research report on Thursday, January 15th. KeyCorp dropped their price target on shares of Atlassian from $250.00 to $210.00 and set an "overweight" rating for the company in a research note on Thursday, October 23rd. Bank of America began coverage on shares of Atlassian in a report on Tuesday, September 23rd. They issued a "neutral" rating and a $200.00 price objective on the stock. Wells Fargo & Company started coverage on shares of Atlassian in a report on Tuesday, September 30th. They set an "overweight" rating and a $216.00 target price for the company. Finally, The Goldman Sachs Group reiterated a "buy" rating and set a $260.00 target price on shares of Atlassian in a research report on Friday, October 31st. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $235.38.

Atlassian Price Performance

NASDAQ:TEAM opened at $118.06 on Wednesday. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.26 and a current ratio of 1.26. The company has a 50-day moving average of $152.24 and a 200-day moving average of $165.25. Atlassian has a 52 week low of $115.53 and a 52 week high of $326.00. The company has a market capitalization of $31.06 billion, a price-to-earnings ratio of -166.28, a PEG ratio of 18.36 and a beta of 0.88.

Atlassian (NASDAQ:TEAM - Get Free Report) last announced its earnings results on Thursday, October 30th. The technology company reported $1.04 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.83 by $0.21. Atlassian had a negative net margin of 3.38% and a negative return on equity of 7.11%. The business had revenue of $1.43 billion during the quarter, compared to analysts' expectations of $1.40 billion. During the same quarter last year, the company posted $0.77 EPS. The firm's revenue for the quarter was up 20.6% on a year-over-year basis. As a group, equities research analysts anticipate that Atlassian will post -0.34 earnings per share for the current fiscal year.

Insider Activity at Atlassian

In other Atlassian news, CEO Michael Cannon-Brookes sold 7,665 shares of the firm's stock in a transaction that occurred on Friday, January 16th. The shares were sold at an average price of $120.82, for a total transaction of $926,085.30. Following the completion of the sale, the chief executive officer directly owned 383,250 shares in the company, valued at $46,304,265. This trade represents a 1.96% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Scott Farquhar sold 7,665 shares of Atlassian stock in a transaction that occurred on Friday, January 16th. The shares were sold at an average price of $120.82, for a total transaction of $926,085.30. Following the completion of the sale, the director owned 383,250 shares of the company's stock, valued at approximately $46,304,265. The trade was a 1.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 551,049 shares of company stock worth $85,741,506 in the last 90 days. Corporate insiders own 36.66% of the company's stock.

Institutional Trading of Atlassian

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. DNB Asset Management AS lifted its stake in shares of Atlassian by 266.6% in the 3rd quarter. DNB Asset Management AS now owns 2,806,888 shares of the technology company's stock valued at $448,260,000 after acquiring an additional 2,041,210 shares during the last quarter. Norges Bank purchased a new position in shares of Atlassian in the second quarter valued at about $377,794,000. Artisan Partners Limited Partnership increased its holdings in Atlassian by 66.3% during the 2nd quarter. Artisan Partners Limited Partnership now owns 3,878,133 shares of the technology company's stock valued at $787,610,000 after purchasing an additional 1,545,546 shares during the period. Vanguard Group Inc. boosted its holdings 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 acquiring an additional 1,049,483 shares in the last quarter. Finally, Voyager Global Management LP lifted its holdings 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 worth $247,535,000 after buying an additional 1,000,000 shares during the period. Institutional investors and hedge funds 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.

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