Atlassian (NASDAQ:TEAM) Stock Falls 6.3% - Should You Sell?

Key Points

• Atlassian shares fell 6.3% to about $175.88, while trading volume was roughly 92% below the average daily level.
• Analysts maintain a generally positive outlook, with 25 Buy ratings, four Holds and one Sell; the consensus rating is “Moderate Buy” with a $191.56 target price.
• The company exceeded quarterly expectations, reporting $1.87 in EPS and $1.77 billion in revenue, with revenue rising 27.6% year over year. Insiders sold shares recently, but institutional investors own 94.45% of the stock.

Shares of Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report) dropped 6.3% during trading on Monday. The company traded as low as $173.50 and last traded at $175.8750. 473,106 shares changed hands during trading, a decline of 92% from the average daily volume of 5,885,006 shares. The stock had previously closed at $187.74.

Analyst Ratings Changes

A number of research analysts have recently issued reports on TEAM shares. UBS Group lifted their price objective on shares of Atlassian from $95.00 to $160.00 and gave the company a "neutral" rating in a report on Friday, August 7th. Citizens Jmp restated a "market perform" rating on shares of Atlassian in a report on Wednesday, July 1st. TD Cowen raised their price target on shares of Atlassian from $105.00 to $145.00 and gave the company a "hold" rating in a research report on Friday, August 7th. Robert W. Baird lifted their price target on Atlassian from $200.00 to $245.00 and gave the company an "outperform" rating in a research note on Monday. Finally, Royal Bank Of Canada began coverage on Atlassian in a report on Tuesday, August 25th. They set an "outperform" rating and a $215.00 price objective for the company. Twenty-five equities research 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. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $191.56.

Atlassian Stock Performance

The company's 50-day simple moving average is $156.23 and its 200 day simple moving average is $107.33. The stock has a market cap of $45.25 billion, a P/E ratio of -941.09, a PEG ratio of 14.75 and a beta of 1.15. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 0.93.

Atlassian (NASDAQ:TEAM - Get Free Report) last issued its quarterly earnings results on Friday, August 7th. The technology company reported $1.87 EPS for the quarter, beating analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $1.66 billion. During the same period last year, the business posted $0.98 earnings per share. Atlassian's revenue was up 27.6% on a year-over-year basis. As a group, sell-side analysts expect that Atlassian Corporation PLC will post 0.94 EPS for the current fiscal year.

Insider Transactions at Atlassian

In related news, CAO Gene Liu sold 1,125 shares of Atlassian stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $175.00, for a total value of $196,875.00. Following the completion of the transaction, the chief accounting officer directly owned 56,807 shares in the company, valued at approximately $9,941,225. The trade was a 1.94% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CRO Brian Duffy sold 7,617 shares of the business's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $163.00, for a total transaction of $1,241,571.00. Following the sale, the executive directly owned 220,074 shares in the company, valued at $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. Insiders sold 22,138 shares of company stock worth $3,751,873 over the last quarter. Corporate insiders own 36.66% of the company's stock.

Hedge Funds Weigh In On Atlassian

A number of large investors have recently made changes to their positions in TEAM. Sequoia Financial Advisors LLC lifted its holdings in Atlassian by 61.7% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 13,532 shares of the technology company's stock worth $1,053,000 after purchasing an additional 5,162 shares in the last quarter. MCF Advisors LLC grew its holdings in Atlassian by 43.6% during the 2nd quarter. MCF Advisors LLC now owns 8,795 shares of the technology company's stock valued at $684,000 after buying an additional 2,669 shares in the last quarter. WINTON GROUP Ltd bought a new stake in shares of Atlassian during the second quarter valued at about $373,000. Engineers Gate Manager LP increased its position in shares of 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 buying an additional 20,872 shares during the period. Finally, Integrated Wealth Concepts LLC boosted its position in shares of Atlassian by 63.3% in 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. 94.45% of the stock is owned by institutional investors.

Atlassian Company Profile

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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