Atlassian (NASDAQ:TEAM) Shares Down 7.4% - Here's What Happened

Key Points

• Atlassian shares fell 7.4% to about $203.92 in mid-day trading, with volume down 81% from the average session.
• Analyst sentiment remains broadly positive: 24 analysts rate the stock Buy, four Hold and one Sell, producing a “Moderate Buy” consensus and a $214.88 price target.
• Atlassian recently exceeded quarterly earnings and revenue expectations, reporting $1.87 in EPS and $1.77 billion in revenue, up 27.6% year over year; insiders have sold shares primarily to cover tax obligations on vested equity awards.

Shares of Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report) dropped 7.4% during mid-day trading on Thursday. The stock traded as low as $200.10 and last traded at $203.92. 1,030,789 shares traded hands during mid-day trading, a decline of 81% from the average session volume of 5,509,652 shares. The stock had previously closed at $220.12.

Analyst Ratings Changes

A number of research firms have commented on TEAM. Morgan Stanley lifted their target price on Atlassian from $120.00 to $180.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Atlassian in a report on Thursday, October 15th. Cantor Fitzgerald upped their price target on Atlassian from $175.00 to $220.00 and gave the company an "overweight" rating in a report on Monday, September 21st. Raymond James Financial set a $180.00 price objective on Atlassian in a research report on Friday, August 7th. Finally, FBN Securities reiterated an "outperform" rating and issued a $170.00 price objective on shares of Atlassian in a report on Monday, August 10th. Twenty-four investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Atlassian currently has an average rating of "Moderate Buy" and a consensus price target of $214.88.

Atlassian Stock Performance

The company has a market cap of $51.33 billion, a PE ratio of -1,067.17, a PEG ratio of 24.27 and a beta of 1.22. The company has a debt-to-equity ratio of 0.93, a current ratio of 0.78 and a quick ratio of 0.78. The business has a 50-day moving average of $194.29 and a 200 day moving average of $117.71.

Atlassian (NASDAQ:TEAM - Get Free Report) last released its earnings results on Friday, August 7th. The technology company reported $1.87 EPS for the quarter, topping analysts' consensus estimates of $1.50 by $0.37. The company had revenue of $1.77 billion for the quarter, compared to analysts' expectations of $1.66 billion. Atlassian had a negative net margin of 0.82% and a positive return on equity of 20.99%. The firm's revenue was up 27.6% compared to the same quarter last year. During the same quarter last year, the business earned $0.98 EPS. Equities research analysts anticipate that Atlassian Corporation PLC will post 0.69 EPS for the current fiscal year.

Insider Buying and Selling at Atlassian

In related news, CRO Brian Duffy sold 7,617 shares of the stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $163.00, for a total value of $1,241,571.00. Following the completion of the transaction, the executive owned 220,074 shares of the company's stock, valued at approximately $35,872,062. This trade represents a 3.35% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO James Chuong sold 9,054 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $172.45, for a total transaction of $1,561,362.30. Following the completion of the transaction, the chief financial officer directly owned 279,218 shares of the company's stock, valued at approximately $48,151,144.10. The trade was a 3.14% 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 sold 22,475 shares of company stock worth $3,822,643 over the last 90 days. 37.63% of the stock is owned by insiders.

Institutional Investors Weigh In On Atlassian

Several large investors have recently added to or reduced their stakes in TEAM. Austin Asset Management Co Inc acquired a new position in shares of Atlassian during the third quarter worth $201,000. Mirae Asset Global Investments Co. Ltd. purchased a new position in Atlassian during the 3rd quarter worth $12,655,000. Vise Technologies Inc. acquired a new position in Atlassian during the 3rd quarter valued at about $2,916,000. Americana Partners LLC acquired a new position in Atlassian during the 3rd quarter valued at about $403,000. Finally, Left Brain Wealth Management LLC purchased a new stake in Atlassian in the third quarter valued at about $269,000. 94.45% of the stock is owned by institutional investors.

About Atlassian

Atlassian Corporation develops collaboration, project-management and workflow software for technology, business and service teams. Its products are designed to help organizations plan projects, manage software development, coordinate work and share knowledge across departments.

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

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