Atlassian (NASDAQ:TEAM) Sets New 1-Year High After Analyst Upgrade

Key Points

• Atlassian shares reached a new 52-week high after Cantor Fitzgerald raised its price target from $175 to $220 and maintained an overweight rating. The stock traded as high as $200 before closing at $191.21.
• Analyst sentiment remains broadly positive, with 25 analysts rating Atlassian a Buy and a consensus rating of “Moderate Buy.” Price targets from major firms range from $200 to $230, above the reported average target of $189.89.
• Atlassian reported quarterly revenue of $1.77 billion, up 27.6% year over year, and EPS of $1.87 versus the $1.50 consensus estimate. Institutional investors own 94.45% of the company, while insiders have recently sold shares primarily to cover tax obligations on equity awards.

Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Tuesday after Cantor Fitzgerald raised their price target on the stock from $175.00 to $220.00. Cantor Fitzgerald currently has an overweight rating on the stock. Atlassian traded as high as $200.00 and last traded at $191.21, with a volume of 222069 shares trading hands. The stock had previously closed at $195.67.

Other equities analysts have also issued research reports about the company. Bank of America lifted their price target on Atlassian from $175.00 to $210.00 and gave the stock a "buy" rating in a research report on Monday, August 31st. Jefferies Financial Group reissued a "buy" rating and set a $200.00 price target on shares of Atlassian in a research report on Friday, August 7th. Citigroup boosted their price objective on shares of Atlassian from $170.00 to $225.00 and gave the stock a "buy" rating in a report on Tuesday, September 1st. Royal Bank Of Canada began coverage on Atlassian in a research report on Tuesday, August 25th. They issued an "outperform" rating and a $215.00 price objective on the stock. Finally, BTIG Research lifted their target price on Atlassian from $180.00 to $230.00 and gave the stock a "buy" rating in a report on Thursday, September 3rd. Twenty-five equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $189.89.

Insiders Place Their Bets

In related news, CFO James Chuong sold 9,054 shares of Atlassian stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $172.45, for a total transaction of $1,561,362.30. Following the transaction, the chief financial officer directly owned 279,218 shares in the company, valued at approximately $48,151,144.10. The trade was a 3.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, 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 7,617 shares of the company's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $163.00, for a total value of $1,241,571.00. Following the completion of the sale, the executive owned 220,074 shares of the company's stock, valued at approximately $35,872,062. The trade was a 3.35% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 22,138 shares of company stock worth $3,751,873. Company insiders own 36.66% of the company's stock.

Hedge Funds Weigh In On Atlassian

Large investors have recently added to or reduced their stakes in the company. Sequoia Financial Advisors LLC raised its position in shares of Atlassian by 61.7% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 13,532 shares of the technology company's stock valued at $1,053,000 after purchasing an additional 5,162 shares during the period. MCF Advisors LLC boosted its holdings in Atlassian by 43.6% in the 2nd quarter. MCF Advisors LLC now owns 8,795 shares of the technology company's stock worth $684,000 after buying an additional 2,669 shares during the period. WINTON GROUP Ltd purchased a new stake in Atlassian in the 2nd quarter worth $373,000. Engineers Gate Manager LP raised its holdings in Atlassian by 37.0% during the second quarter. Engineers Gate Manager LP now owns 77,291 shares of the technology company's stock valued at $6,012,000 after acquiring an additional 20,872 shares during the period. Finally, Integrated Wealth Concepts LLC raised its holdings in Atlassian by 63.3% during the second quarter. Integrated Wealth Concepts LLC now owns 21,922 shares of the technology company's stock valued at $1,705,000 after acquiring an additional 8,500 shares during the period. Hedge funds and other institutional investors own 94.45% of the company's stock.

Atlassian Stock Down 3.1%

The company has a 50-day moving average price of $148.28 and a 200 day moving average price of $104.24. The firm has a market capitalization of $48.11 billion, a PE ratio of -997.22, a P/E/G ratio of 15.09 and a beta of 1.15. The company has a debt-to-equity ratio of 0.93, a current ratio of 0.78 and a quick ratio of 0.78.

Atlassian (NASDAQ:TEAM - Get Free Report) last issued its earnings results on Friday, August 7th. The technology company reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.50 by $0.37. Atlassian had a positive return on equity of 20.99% and a negative net margin of 0.82%.The company had revenue of $1.77 billion for the quarter, compared to the consensus estimate of $1.66 billion. During the same quarter last year, the company earned $0.98 EPS. The firm's quarterly revenue was up 27.6% on a year-over-year basis. Analysts forecast that Atlassian Corporation PLC will post 0.94 earnings per share for the current year.

About Atlassian

Atlassian Corporation develops collaboration, productivity and workflow software for software development, information technology, business and other teams. Its products are designed to help organizations plan projects, manage work, share knowledge, improve service delivery and coordinate across departments.

Its product portfolio includes Jira for project and issue tracking, Confluence for collaboration and knowledge management, Jira Service Management for IT and business service workflows, Trello for organizing tasks and projects, Bitbucket for source-code management, and Loom for video messaging.

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