Wall Street Zen Downgrades Atlassian (NASDAQ:TEAM) to Buy

Key Points

• Wall Street Zen downgraded Atlassian from “strong-buy” to “buy”, while the broader analyst view remains positive with a consensus rating of Moderate Buy and an average price target of $145.63.
• Atlassian recently reported better-than-expected quarterly results, posting EPS of $1.75 versus estimates of $1.33 and revenue of $1.79 billion, up 31.7% year over year.
• Insider activity showed executive share sales, including CFO James Chuong and CRO Brian Duffy, though the article notes these transactions were made to cover tax withholding obligations tied to equity awards.

Atlassian (NASDAQ:TEAM - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

A number of other research firms also recently commented on TEAM. Barclays increased their price objective on shares of Atlassian from $106.00 to $112.00 and gave the stock an "overweight" rating in a research note on Thursday, May 7th. KeyCorp reduced their price objective on shares of Atlassian from $170.00 to $130.00 and set an "overweight" rating for the company in a research note on Wednesday, April 1st. Weiss Ratings restated a "sell (e+)" rating on shares of Atlassian in a research note on Monday, April 20th. BTIG Research increased their price objective on shares of Atlassian from $120.00 to $130.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Finally, Zacks Research upgraded shares of Atlassian from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Atlassian presently has a consensus rating of "Moderate Buy" and an average price target of $145.63.

Atlassian Price Performance

Shares of NASDAQ TEAM opened at $107.61 on Friday. The firm has a market cap of $27.31 billion, a PE ratio of -129.65, a PEG ratio of 5.29 and a beta of 0.90. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 1.13. Atlassian has a 1-year low of $56.01 and a 1-year high of $222.59. The company has a fifty day moving average price of $75.55 and a 200 day moving average price of $108.19.

Atlassian (NASDAQ:TEAM - Get Free Report) last announced its earnings results on Thursday, April 30th. The technology company reported $1.75 earnings per share for the quarter, topping analysts' consensus estimates of $1.33 by $0.42. Atlassian had a negative net margin of 3.50% and a positive return on equity of 6.22%. The firm had revenue of $1.79 billion during the quarter, compared to analyst estimates of $1.70 billion. During the same period in the prior year, the business earned $0.97 EPS. The company's revenue for the quarter was up 31.7% compared to the same quarter last year. Research analysts predict that Atlassian will post 0.81 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO James Chuong sold 8,838 shares of the firm's stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $87.75, for a total value of $775,534.50. Following the completion of the sale, the chief financial officer directly owned 288,272 shares in the company, valued at approximately $25,295,868. This trade represents a 2.97% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Brian Duffy sold 1,986 shares of the firm's stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $87.75, for a total transaction of $174,271.50. Following the completion of the sale, the executive owned 236,841 shares of the company's stock, valued at $20,782,797.75. This trade represents a 0.83% decrease in their ownership of the stock. 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 a total of 10,891 shares of company stock valued at $955,683 over the last quarter. 36.66% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. MV Capital Management Inc. bought a new position in Atlassian in the 4th quarter valued at about $25,000. Physician Wealth Advisors Inc. increased its holdings in shares of Atlassian by 60.4% during the third quarter. Physician Wealth Advisors Inc. now owns 162 shares of the technology company's stock worth $26,000 after purchasing an additional 61 shares during the period. Geneos Wealth Management Inc. increased its holdings in shares of Atlassian by 447.2% during the first quarter. Geneos Wealth Management Inc. now owns 197 shares of the technology company's stock worth $42,000 after purchasing an additional 161 shares during the period. Atlantic Union Bankshares Corp increased its stake in Atlassian by 19,900.0% in 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 during the last quarter. Finally, Board of the Pension Protection Fund bought a new position in Atlassian in the fourth quarter valued at approximately $32,000. 94.45% of the stock is owned by institutional investors.

About Atlassian

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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