Atlassian (NASDAQ:TEAM) Trading Down 6.5% After Analyst Downgrade

Atlassian Corporation PLC (NASDAQ:TEAM) was down 6.5% on Thursday after BMO Capital Markets lowered their price target on the stock from $105.00 to $95.00. BMO Capital Markets currently has an outperform rating on the stock. Atlassian traded as low as $76.33 and last traded at $76.2110. Approximately 2,773,642 shares traded hands during mid-day trading, a decline of 59% from the average daily volume of 6,786,564 shares. The stock had previously closed at $81.55.

Several other analysts have also recently commented on TEAM. KeyCorp decreased their price target on shares of Atlassian from $170.00 to $130.00 and set an “overweight” rating on the stock in a research note on Wednesday, April 1st. TD Cowen boosted their price objective on shares of Atlassian from $85.00 to $105.00 and gave the stock a “hold” rating in a research report on Friday, May 1st. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $295.00 price objective on shares of Atlassian in a report on Friday, May 1st. Oppenheimer increased their price objective on Atlassian from $100.00 to $110.00 and gave the company an “outperform” rating in a research report on Monday, May 11th. Finally, Wall Street Zen cut Atlassian from a “strong-buy” rating to a “buy” rating in a research note on Saturday, May 30th. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $145.26.

Insider Buying and Selling

In related news, CFO James Chuong sold 8,838 shares of the stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $87.75, for a total value of $775,534.50. Following the transaction, the chief financial officer directly owned 288,272 shares in the company, valued at $25,295,868. This represents a 2.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Brian Duffy sold 3,000 shares of the firm’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $89.71, for a total transaction of $269,130.00. Following the completion of the transaction, the executive directly owned 227,691 shares in the company, valued at approximately $20,426,159.61. The trade was a 1.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 20,041 shares of company stock valued at $1,801,069. 36.66% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Atlassian

A number of institutional investors and hedge funds have recently added to or reduced their stakes in TEAM. Vanguard Group Inc. boosted its holdings in Atlassian by 0.3% during the fourth quarter. Vanguard Group Inc. now owns 18,541,267 shares of the technology company’s stock worth $3,006,281,000 after buying an additional 61,706 shares during the last quarter. Baillie Gifford & Co. increased its stake in shares of Atlassian by 3.9% in the 4th quarter. Baillie Gifford & Co. now owns 8,431,802 shares of the technology company’s stock valued at $1,367,132,000 after acquiring an additional 316,276 shares during the last quarter. AQR Capital Management LLC increased its stake in shares of Atlassian by 291.4% in the 4th quarter. AQR Capital Management LLC now owns 7,749,694 shares of the technology company’s stock valued at $1,256,535,000 after acquiring an additional 5,769,788 shares during the last quarter. Pictet Asset Management Holding SA raised its position in shares of Atlassian by 27.4% in the 1st quarter. Pictet Asset Management Holding SA now owns 5,031,413 shares of the technology company’s stock valued at $343,344,000 after acquiring an additional 1,080,561 shares during the period. Finally, Morgan Stanley raised its position in shares of Atlassian by 52.4% in the 4th quarter. Morgan Stanley now owns 4,822,007 shares of the technology company’s stock valued at $781,841,000 after acquiring an additional 1,657,309 shares during the period. Institutional investors own 94.45% of the company’s stock.

Atlassian Stock Down 6.5%

The firm has a market cap of $19.35 billion, a P/E ratio of -91.76, a price-to-earnings-growth ratio of 4.61 and a beta of 1.07. The firm’s 50 day moving average is $84.69 and its two-hundred day moving average is $100.47. 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 (NASDAQ:TEAM) last issued its earnings results on Thursday, April 30th. The technology company reported $1.75 EPS for the quarter, beating the consensus estimate of $1.33 by $0.42. The firm had revenue of $1.79 billion during the quarter, compared to the consensus estimate of $1.70 billion. Atlassian had a negative net margin of 3.50% and a positive return on equity of 6.22%. The business’s quarterly revenue was up 31.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.97 earnings per share. As a group, research analysts anticipate that Atlassian Corporation PLC will post 0.81 EPS for the current fiscal year.

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.