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

Key Points

• TD Cowen cut its price target for Atlassian from $205 to $175 and kept a "hold" rating, a target that implies roughly a 49.4% upside from the current share price while the analyst consensus price target remains $236.15 (Moderate Buy).
• Atlassian beat the latest quarterly EPS estimate ($1.04 vs. $0.83) and reported 20.6% revenue growth to $1.43B, but the company still shows a negative net margin and analysts forecast -$0.34 EPS for the current year.
• Significant insider selling occurred recently: CEO Michael Cannon-Brookes and co-founder Scott Farquhar each sold 7,665 shares at about $120.82, with insiders selling 566,379 shares (~$88.3M) in the last three months while retaining 36.66% ownership.

Atlassian (NASDAQ:TEAM - Get Free Report) had its price objective decreased by equities research analysts at TD Cowen from $205.00 to $175.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm currently has a "hold" rating on the technology company's stock. TD Cowen's price target suggests a potential upside of 49.43% from the stock's current price.

Several other analysts also recently issued reports on the company. Bank of America assumed coverage on Atlassian in a research report on Tuesday, September 23rd. They issued a "neutral" rating and a $200.00 price objective on the stock. Zacks Research upgraded shares of Atlassian from a "strong sell" rating to a "hold" rating in a report on Monday, November 3rd. Wells Fargo & Company initiated coverage on shares of Atlassian in a research report on Tuesday, September 30th. They issued an "overweight" rating and a $216.00 price objective for the company. The Goldman Sachs Group reissued a "buy" rating and set a $260.00 price objective on shares of Atlassian in a research note on Friday, October 31st. Finally, Canaccord Genuity Group reaffirmed a "buy" rating and issued a $230.00 price objective on shares of Atlassian in a research report on Wednesday, October 22nd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $236.15.

Atlassian Price Performance

Shares of TEAM traded down $1.44 during trading hours on Tuesday, reaching $117.12. The company had a trading volume of 3,711,497 shares, compared to its average volume of 4,033,136. The firm has a 50 day simple moving average of $153.03 and a 200-day simple moving average of $165.93. The company has a market capitalization of $30.81 billion, a price-to-earnings ratio of -165.14, a PEG ratio of 18.36 and a beta of 0.88. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.72. Atlassian has a 12-month low of $115.53 and a 12-month high of $326.00.

Atlassian (NASDAQ:TEAM - Get Free Report) last posted its earnings results on Thursday, October 30th. The technology company reported $1.04 EPS for the quarter, topping analysts' consensus estimates of $0.83 by $0.21. Atlassian had a negative return on equity of 7.11% and a negative net margin of 3.38%.The company had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.40 billion. During the same period in the previous year, the business earned $0.77 earnings per share. Atlassian's quarterly revenue was up 20.6% compared to the same quarter last year. Research analysts expect that Atlassian will post -0.34 earnings per share for the current year.

Insider Buying and Selling at Atlassian

In other news, CEO Michael Cannon-Brookes sold 7,665 shares of the stock in a transaction dated Friday, January 16th. The stock was sold at an average price of $120.82, for a total value of $926,085.30. Following the completion of the sale, the chief executive officer owned 383,250 shares in the company, valued at approximately $46,304,265. This trade represents a 1.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Scott Farquhar sold 7,665 shares of the company's stock in a transaction that occurred on Friday, January 16th. The stock was sold at an average price of $120.82, for a total value of $926,085.30. Following the completion of the transaction, the director owned 383,250 shares of the company's stock, valued at approximately $46,304,265. This represents a 1.96% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 566,379 shares of company stock valued at $88,334,729 in the last three months. Company insiders own 36.66% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. raised its position in shares of Atlassian by 6.0% during the 3rd quarter. Vanguard Group Inc. now owns 18,479,561 shares of the technology company's stock worth $2,951,186,000 after purchasing an additional 1,049,483 shares during the period. Artisan Partners Limited Partnership grew its position 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 worth $787,610,000 after purchasing an additional 1,545,546 shares in the last quarter. State Street Corp increased its holdings in shares of Atlassian by 1.9% in the 3rd quarter. State Street Corp now owns 3,867,995 shares of the technology company's stock valued at $617,719,000 after purchasing an additional 73,014 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Atlassian by 18.7% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,867,886 shares of the technology company's stock worth $458,001,000 after purchasing an additional 451,706 shares in the last quarter. Finally, DNB Asset Management AS boosted its stake in shares of Atlassian by 266.6% during 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 buying an additional 2,041,210 shares during the period. Hedge funds and other institutional investors own 94.45% of the company's stock.

Atlassian Company Profile

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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