Weiss Ratings Reiterates "Sell (E+)" Rating for Atlassian (NASDAQ:TEAM)

Key Points

• Weiss Ratings has reaffirmed a "Sell (E+)" rating for Atlassian (NASDAQ: TEAM) following a recent research report.
• Several analysts have adjusted their price targets for Atlassian, with Stephens lowering theirs from $221.00 to $202.00, and a consensus target price now standing at $248.74.
• Atlassian's stock has struggled, trading at $149.52, significantly below its 52-week high of $326.00, despite a 22.3% year-over-year revenue increase.

Atlassian (NASDAQ:TEAM - Get Free Report)'s stock had its "sell (e+)" rating reaffirmed by analysts at Weiss Ratings in a research report issued to clients and investors on Wednesday,Weiss Ratings reports.

A number of other equities research analysts have also recently weighed in on the company. Stephens lowered their price target on Atlassian from $221.00 to $202.00 and set an "equal weight" rating on the stock in a report on Monday, August 11th. KeyCorp lowered their price target on Atlassian from $275.00 to $250.00 and set an "overweight" rating on the stock in a report on Thursday, July 17th. Zacks Research upgraded Atlassian from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 20th. Raymond James Financial lowered their price target on Atlassian from $300.00 to $250.00 and set an "outperform" rating on the stock in a report on Friday, August 8th. Finally, Truist Financial set a $230.00 price target on Atlassian in a report on Friday, August 8th. One analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $248.74.

Atlassian Stock Performance

Shares of Atlassian stock traded down $0.60 on Wednesday, hitting $149.52. The stock had a trading volume of 2,251,185 shares, compared to its average volume of 2,412,194. Atlassian has a 52-week low of $146.16 and a 52-week high of $326.00. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.73. The stock has a market cap of $39.22 billion, a price-to-earnings ratio of -151.03 and a beta of 0.92. The company's 50 day moving average price is $169.64 and its 200 day moving average price is $194.33.

Atlassian (NASDAQ:TEAM - Get Free Report) last posted its earnings results on Thursday, August 7th. The technology company reported $0.98 earnings per share for the quarter, beating the consensus estimate of $0.83 by $0.15. The business had revenue of $1.38 billion during the quarter, compared to the consensus estimate of $1.36 billion. Atlassian had a negative return on equity of 14.77% and a negative net margin of 4.92%.The business's quarterly revenue was up 22.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.66 EPS. Atlassian has set its Q1 2026 guidance at EPS. FY 2026 guidance at EPS. On average, research analysts anticipate that Atlassian will post -0.34 EPS for the current year.

Insider Buying and Selling

In related news, Director Scott Farquhar sold 7,665 shares of the stock in a transaction on Monday, July 21st. The stock was sold at an average price of $194.98, for a total value of $1,494,521.70. Following the completion of the sale, the director directly owned 383,250 shares in the company, valued at approximately $74,726,085. This represents a 1.96% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Michael Cannon-Brookes sold 7,665 shares of the stock in a transaction on Wednesday, July 23rd. The shares were sold at an average price of $202.78, for a total value of $1,554,308.70. Following the completion of the sale, the chief executive officer owned 367,920 shares of the company's stock, valued at approximately $74,606,817.60. This represents a 2.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 551,608 shares of company stock valued at $97,185,382. 38.55% of the stock is currently owned by company insiders.

Institutional Trading of Atlassian

Large investors have recently added to or reduced their stakes in the stock. Capco Asset Management LLC acquired a new position in Atlassian in the second quarter worth about $25,000. Smithfield Trust Co grew its stake in Atlassian by 90.7% in the first quarter. Smithfield Trust Co now owns 164 shares of the technology company's stock worth $34,000 after purchasing an additional 78 shares in the last quarter. Geneos Wealth Management Inc. grew its stake in Atlassian by 447.2% in 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 in the last quarter. First Horizon Advisors Inc. grew its stake in Atlassian by 25.9% in the first quarter. First Horizon Advisors Inc. now owns 267 shares of the technology company's stock worth $57,000 after purchasing an additional 55 shares in the last quarter. Finally, State of Wyoming grew its stake in Atlassian by 20.3% in the first quarter. State of Wyoming now owns 278 shares of the technology company's stock worth $59,000 after purchasing an additional 47 shares in the last quarter. 94.45% of the stock is currently owned by institutional investors and hedge funds.

Atlassian Company Profile

Atlassian Corporation, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. Its product portfolio includes Jira Software and Jira Work Management, a project management system that connects technical and business teams so they can better plan, organize, track and manage their work and projects; Confluence, a connected workspace that organizes knowledge across all teams to move work forward; and Trello, a collaboration and organization product that captures and adds structure to fluid and fast-forming work for teams.

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