Atlassian (NASDAQ:TEAM) Stock Price Crosses Below 50-Day Moving Average - Time to Sell?

Key Points

• Atlassian shares fell below their 50-day moving average, trading as low as $188.43 and last changing hands at $191.72, versus the $195.23 average.
• Despite the technical weakness, analysts remain broadly positive: 23 rate the stock Buy, four Hold and one Sell, producing a “Moderate Buy” consensus and an average price target of $215.08.
• The company reported quarterly revenue of $1.77 billion, up 27.6% year over year, and EPS of $1.87 versus the $1.50 consensus estimate. Insiders sold $3.82 million of stock over the past 90 days, while institutional investors own 94.45% of shares.

Atlassian Corporation PLC (NASDAQ:TEAM - Get Free Report)'s share price passed below its 50-day moving average during trading on Friday. The stock has a 50-day moving average of $195.23 and traded as low as $188.43. Atlassian shares last traded at $191.72, with a volume of 4,234,033 shares changing hands.

Analyst Ratings Changes

Several equities research analysts have commented on the stock. Wall Street Zen raised shares of Atlassian from a "hold" rating to a "buy" rating in a report on Sunday, September 13th. Jefferies Financial Group reiterated a "buy" rating and issued a $200.00 target price on shares of Atlassian in a research note on Friday, August 7th. BMO Capital Markets reissued an "outperform" rating and issued a $225.00 price target on shares of Atlassian in a research report on Friday. Weiss Ratings restated a "sell (e+)" rating on shares of Atlassian in a research note on Thursday, October 15th. Finally, FBN Securities reiterated an "outperform" rating and issued a $170.00 price objective on shares of Atlassian in a research note on Monday, August 10th. Twenty-three equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $215.08.

Atlassian Price Performance

The business has a fifty day moving average of $195.23 and a 200-day moving average of $118.22. The firm has a market cap of $48.53 billion, a PE ratio of -1,009.05, a PEG ratio of 21.76 and a beta of 1.22. 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 earnings results on Friday, August 7th. The technology company reported $1.87 EPS for the quarter, topping 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 business had revenue of $1.77 billion during 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 revenue was up 27.6% compared to the same quarter last year. As a group, research analysts predict that Atlassian Corporation PLC will post 0.69 earnings per share for the current year.

Insider Activity

In related news, CAO Gene Liu sold 1,125 shares of the business's stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $175.00, for a total transaction of $196,875.00. Following the completion of the transaction, the chief accounting officer owned 56,807 shares of the company's stock, valued at approximately $9,941,225. The trade was a 1.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CRO Brian Duffy sold 7,617 shares of the business's stock in a transaction that occurred 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 transaction, the executive directly owned 220,074 shares of the company's stock, valued at approximately $35,872,062. This represents a 3.35% 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. Over the last ninety days, insiders sold 22,475 shares of company stock worth $3,822,643. 37.63% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Carmignac Gestion increased its stake in Atlassian by 115.8% in the first quarter. Carmignac Gestion now owns 2,603,770 shares of the technology company's stock valued at $177,707,000 after acquiring an additional 1,397,402 shares during the last quarter. First Trust Advisors LP lifted its stake in Atlassian by 48.4% during the first quarter. First Trust Advisors LP now owns 2,349,842 shares of the technology company's stock worth $160,377,000 after purchasing an additional 766,922 shares during the last quarter. KBC Group NV lifted its stake in Atlassian by 1,691.2% during the first quarter. KBC Group NV now owns 1,440,019 shares of the technology company's stock worth $98,281,000 after purchasing an additional 1,359,624 shares during the last quarter. Assenagon Asset Management S.A. lifted its stake in Atlassian by 111.7% during the third quarter. Assenagon Asset Management S.A. now owns 469,100 shares of the technology company's stock worth $84,105,000 after purchasing an additional 247,540 shares during the last quarter. Finally, Artemis Investment Management LLP boosted its holdings in shares of Atlassian by 53.0% in the 3rd quarter. Artemis Investment Management LLP now owns 461,537 shares of the technology company's stock worth $82,749,000 after purchasing an additional 159,884 shares in the last quarter. 94.45% of the stock is currently owned by hedge funds and other 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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