Atlassian (NASDAQ:TEAM) Reaches New 12-Month High Following Analyst Upgrade

On February 1st, 2025, shares of Atlassian Co. (NASDAQ:TEAM) reached a new 52-week high during trading sessions after UBS Group raised their price target on the stock from $275.00 to $330.00. Currently, UBS Group holds a neutral rating on the stock. During trading, Atlassian peaked at $324.37 before settling at $314.66, with a trading volume of 2,005,053 shares. The stock had closed at $266.95 on the previous trading session.

In addition to UBS, several other research analysts have provided updates on Atlassian. Mizuho increased their price target for the company from $285.00 to $355.00 while assigning an “outperform” rating in their recent report. Similarly, Morgan Stanley raised their price objective for Atlassian from $315.00 to $370.00 and marked the company with an “overweight” rating. Furthermore, Canaccord Genuity Group adjusted their price target from $255.00 to $285.00, labeling the stock as a “buy” in their December 20th report. BMO Capital Markets also upgraded Atlassian from “market perform” to “outperform,” increasing their target price from $255.00 to $292.00 in their January 10th research note. Lastly, Raymond James reaffirmed an “outperform” rating with a revised price objective of $330.00 after raising it from $250.00 previously.

Overall, nine equities research analysts rated Atlassian with a hold rating while sixteen analysts issued buy ratings. According to MarketBeat, the current consensus rating for Atlassian is “Moderate Buy,” with an average target price of $307.00.

Insider Transactions at Atlassian

In insider news, Atlassian's CEO Michael Cannon-Brookes sold 7,948 shares of the company on December 5th. This sale occurred at an average price of $278.79, amounting to a total of approximately $2,215,822.92. After this transaction, the CEO holds 135,116 shares, now valued at about $37,668,989.64, reflecting a 5.56% decrease in ownership. The details of this transaction have been disclosed in a legal filing with the Securities & Exchange Commission.

Additionally, CAO Gene Liu sold 785 shares on November 11th at an average price of $240.00 for a total value of $188,400.00, resulting in a 1.34% decrease in their ownership, leaving them with 57,938 shares valued at $13,905,120. Over the last quarter, company insiders have sold 257,156 shares totaling approximately $65,313,573, with insiders currently owning about 38.55% of Atlassian's stock.

Institutional Investor Activity

Several large institutional investors have recently made changes to their stakes in Atlassian. Thrivent Financial for Lutherans added a new position worth approximately $677,000 in the second quarter. Similarly, Susquehanna Fundamental Investments LLC invested $407,000 in a new position in the same quarter. Quarry LP significantly increased its holdings, raising its position by 143.8%, now owning 373 shares valued at $66,000 after adding 220 shares in the last quarter.

Truist Financial Corp also grew its Atlassian holdings by 2.5% during the second quarter, now owning 84,358 shares worth $14,921,000 after an acquisition of 2,050 shares. Another addition came from Sanctuary Advisors LLC, which bought a new position valued at around $1,022,000 in the second quarter. Currently, institutional investors own approximately 94.45% of Atlassian's total shares.

Atlassian's Financial Performance

Atlassian has a quick ratio of 1.18 and a current ratio of 1.18, with a debt-to-equity ratio of 0.96. The company boasts a market capitalization of approximately $79.89 billion, a price-to-earnings (P/E) ratio of -201.83, and a beta of 0.83. The stock has a fifty-day moving average of $260.51 and a 200-day moving average of $208.06.

Atlassian recently reported its quarterly earnings on January 30th, revealing earnings of ($0.12) per share, falling short of analysts' consensus estimates of $0.73 by $0.85. The company recorded a negative net margin of 8.59% and a negative return on equity of 23.35%. Analysts predict that Atlassian will post an earnings per share (EPS) of -0.55 for the current year.

About Atlassian

Atlassian Corporation, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. Its product lineup includes Jira Software and Jira Work Management, which helps teams plan and manage projects effectively. The company also offers Confluence, a collaborative workspace that organizes knowledge, and Trello, a tool that aids collaboration and organization for teams.

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