Zacks Research Downgrades Atlassian (NASDAQ:TEAM) to Strong Sell

Atlassian (NASDAQ:TEAM) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Wednesday,Zacks.com reports.

A number of other brokerages have also recently issued reports on TEAM. BMO Capital Markets set a $130.00 price objective on shares of Atlassian and gave the company an “outperform” rating in a report on Friday, February 6th. Truist Financial set a $210.00 price target on shares of Atlassian in a research report on Friday, October 31st. Barclays decreased their price objective on Atlassian from $215.00 to $165.00 and set an “overweight” rating for the company in a report on Friday, February 6th. Mizuho lowered their price objective on Atlassian from $225.00 to $205.00 and set an “outperform” rating for the company in a research note on Friday, February 6th. Finally, UBS Group reaffirmed a “neutral” rating and set a $105.00 target price on shares of Atlassian in a research report on Friday, February 6th. Twenty investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $189.32.

Atlassian Trading Down 0.6%

NASDAQ TEAM opened at $86.48 on Wednesday. The company has a market cap of $22.75 billion, a price-to-earnings ratio of -120.11, a P/E/G ratio of 72.60 and a beta of 0.88. Atlassian has a 52 week low of $83.17 and a 52 week high of $320.88. The business has a 50 day moving average price of $139.28 and a 200-day moving average price of $155.36. The company has a quick ratio of 1.26, a current ratio of 0.89 and a debt-to-equity ratio of 0.62.

Atlassian (NASDAQ:TEAM) last issued its earnings results on Thursday, February 5th. The technology company reported $1.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.12 by $0.10. Atlassian had a negative return on equity of 6.33% and a negative net margin of 3.29%.The company had revenue of $1.59 billion for the quarter, compared to analysts’ expectations of $1.54 billion. During the same period last year, the business earned $0.96 EPS. Atlassian’s quarterly revenue was up 23.3% compared to the same quarter last year. As a group, equities analysts expect that Atlassian will post -0.34 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Michael Cannon-Brookes sold 7,665 shares of Atlassian stock in a transaction on Friday, February 6th. The stock was sold at an average price of $94.81, for a total transaction of $726,718.65. Following the sale, the chief executive officer directly owned 275,940 shares in the company, valued at approximately $26,161,871.40. This trade represents a 2.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Scott Farquhar sold 7,665 shares of the business’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $94.81, for a total value of $726,718.65. Following the completion of the transaction, the director directly owned 275,940 shares in the company, valued at approximately $26,161,871.40. This represents a 2.70% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 513,177 shares of company stock valued at $74,514,517 over the last ninety days. 36.66% of the stock is currently owned by company insiders.

Institutional Trading of Atlassian

Hedge funds have recently added to or reduced their stakes in the stock. Advisors Asset Management Inc. grew its position in shares of Atlassian by 121.9% during the 4th quarter. Advisors Asset Management Inc. now owns 6,414 shares of the technology company’s stock valued at $1,040,000 after acquiring an additional 3,523 shares during the period. Northwest & Ethical Investments L.P. bought a new stake in shares of Atlassian in the 4th quarter worth approximately $375,000. Federation des caisses Desjardins du Quebec lifted its stake in Atlassian by 428.7% in the fourth quarter. Federation des caisses Desjardins du Quebec now owns 36,096 shares of the technology company’s stock valued at $5,852,000 after purchasing an additional 29,269 shares during the last quarter. DRW Securities LLC purchased a new position in Atlassian in the fourth quarter valued at approximately $390,000. Finally, Orion Porfolio Solutions LLC bought a new position in Atlassian during the fourth quarter valued at $805,000. 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.