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

Key Points

• TD Cowen cut its price target on Atlassian from $140 to $85 and maintained a "hold" rating, implying roughly a 28.8% upside from the current share price.
• Despite that cut, the consensus remains a Moderate Buy (20 Buys, 6 Holds, 1 Sell) with an average analyst price target of $165.67, though several firms have recently lowered their targets.
• Shares trade near $66 (12‑month range $56–$242) with negative net margin and expected negative EPS for the year; insiders sold about 143,983 shares (~$16.9M) last quarter and the company has a market cap of ~$17.4B.

Atlassian (NASDAQ:TEAM - Get Free Report) had its target price decreased by equities research analysts at TD Cowen from $140.00 to $85.00 in a research note issued on Thursday,Benzinga reports. The brokerage presently has a "hold" rating on the technology company's stock. TD Cowen's target price indicates a potential upside of 28.79% from the company's current price.

TEAM has been the subject of a number of other reports. Oppenheimer lowered their price objective on shares of Atlassian from $275.00 to $150.00 and set an "outperform" rating for the company in a research report on Friday, February 6th. Barclays decreased their price objective on shares of Atlassian from $215.00 to $165.00 and set an "overweight" rating for the company in a research report on Friday, February 6th. Wall Street Zen raised shares of Atlassian from a "hold" rating to a "buy" rating in a research note on Monday, March 23rd. UBS Group reissued a "neutral" rating and set a $105.00 target price on shares of Atlassian in a research note on Friday, February 6th. Finally, Wolfe Research reaffirmed an "outperform" rating and issued a $100.00 price objective on shares of Atlassian in a research note on Thursday, March 12th. Twenty analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Atlassian currently has a consensus rating of "Moderate Buy" and an average price target of $165.67.

Atlassian Price Performance

Shares of NASDAQ:TEAM opened at $66.00 on Thursday. The firm has a 50 day moving average of $74.89 and a 200-day moving average of $124.18. The stock has a market capitalization of $17.41 billion, a PE ratio of -91.67 and a beta of 0.99. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 0.62. Atlassian has a 12 month low of $56.01 and a 12 month high of $242.00.

Atlassian (NASDAQ:TEAM - Get Free Report) last released its quarterly earnings data on Friday, February 6th. The technology company reported $1.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.12 by $0.10. The business had revenue of $1.59 billion during the quarter, compared to analysts' expectations of $1.54 billion. Atlassian had a negative net margin of 3.29% and a negative return on equity of 6.33%. The firm's quarterly revenue was up 23.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.96 EPS. On average, equities research analysts predict that Atlassian will post -0.34 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Scott Farquhar sold 7,665 shares of Atlassian stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $94.81, for a total value of $726,718.65. Following the completion of the transaction, the director owned 275,940 shares in the company, valued at $26,161,871.40. This trade represents a 2.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CTO Rajeev Bashyam Rajan sold 3,072 shares of Atlassian stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $81.35, for a total transaction of $249,907.20. Following the completion of the transaction, the chief technology officer owned 212,916 shares of the company's stock, valued at $17,320,716.60. The trade was a 1.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 143,983 shares of company stock valued at $16,938,095. Company insiders own 36.66% of the company's stock.

Hedge Funds Weigh In On Atlassian

Hedge funds have recently bought and sold shares of the company. MV Capital Management Inc. purchased a new position in Atlassian during the fourth quarter valued at approximately $25,000. Physician Wealth Advisors Inc. grew its stake in Atlassian by 60.4% during the third quarter. Physician Wealth Advisors Inc. now owns 162 shares of the technology company's stock valued at $26,000 after acquiring an additional 61 shares in the last quarter. Atlantic Union Bankshares Corp grew its stake in Atlassian by 19,900.0% during the third quarter. Atlantic Union Bankshares Corp now owns 200 shares of the technology company's stock valued at $32,000 after acquiring an additional 199 shares in the last quarter. Board of the Pension Protection Fund purchased a new position in Atlassian during the fourth quarter valued at approximately $32,000. Finally, Basepoint Wealth LLC purchased a new position in Atlassian during the fourth quarter valued at approximately $32,000. 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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