Atlassian (NASDAQ:TEAM) Shares Down 7.4% – Time to Sell?

Shares of Atlassian Corporation PLC (NASDAQ:TEAM) dropped 7.4% on Thursday. The company traded as low as $200.10 and last traded at $203.92. Approximately 1,030,789 shares changed hands during trading, a decline of 81% from the average session volume of 5,509,652 shares. The stock had previously closed at $220.12.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on TEAM shares. Wells Fargo & Company boosted their price objective on Atlassian from $230.00 to $270.00 and gave the stock an “overweight” rating in a research note on Wednesday. Morgan Stanley boosted their target price on shares of Atlassian from $120.00 to $180.00 and gave the stock an “overweight” rating in a research note on Friday, August 7th. Barclays raised their price target on shares of Atlassian from $172.00 to $222.00 and gave the company an “overweight” rating in a report on Tuesday, October 13th. KeyCorp boosted their price objective on shares of Atlassian from $185.00 to $235.00 and gave the stock an “overweight” rating in a research report on Monday, October 19th. Finally, Wall Street Zen raised Atlassian from a “hold” rating to a “buy” rating in a report on Sunday, September 13th. Twenty-three analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Atlassian has a consensus rating of “Moderate Buy” and an average price target of $215.08.

Atlassian Trading Down 6.1%

The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.78 and a current ratio of 0.78. The company has a market capitalization of $48.53 billion, a price-to-earnings ratio of -1,009.05, a P/E/G ratio of 21.76 and a beta of 1.22. The business’s 50-day simple moving average is $195.23 and its 200-day simple moving average is $118.22.

Atlassian (NASDAQ:TEAM) last issued its earnings results on Friday, August 7th. The technology company reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.50 by $0.37. Atlassian had a negative net margin of 0.82% and a positive return on equity of 20.99%. The company had revenue of $1.77 billion for the quarter, compared to analyst estimates of $1.66 billion. During the same quarter last year, the firm earned $0.98 EPS. The company’s revenue for the quarter was up 27.6% on a year-over-year basis. On average, research analysts expect that Atlassian Corporation PLC will post 0.69 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO James Chuong sold 9,054 shares of the stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $172.45, for a total transaction of $1,561,362.30. Following the completion of the sale, the chief financial officer directly owned 279,218 shares of the company’s stock, valued at approximately $48,151,144.10. This represents a 3.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Brian Duffy sold 7,617 shares of the firm’s stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $163.00, for a total transaction of $1,241,571.00. Following the sale, the executive owned 220,074 shares in the company, valued at $35,872,062. This trade represents a 3.35% 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. Over the last quarter, insiders have sold 22,475 shares of company stock worth $3,822,643. Insiders own 37.63% of the company’s stock.

Institutional Investors Weigh In On Atlassian

Several large investors have recently made changes to their positions in the stock. Activest Wealth Management grew its holdings in Atlassian by 372.4% during the third quarter. Activest Wealth Management now owns 137 shares of the technology company’s stock worth $25,000 after purchasing an additional 108 shares during the period. Reyes Financial Architecture Inc. acquired a new position in Atlassian during the third quarter worth approximately $49,000. Fortitude Family Office LLC raised its stake in Atlassian by 23.0% in the third quarter. Fortitude Family Office LLC now owns 289 shares of the technology company’s stock valued at $52,000 after buying an additional 54 shares during the period. Physician Wealth Advisors Inc. raised its stake in Atlassian by 142.4% in the third quarter. Physician Wealth Advisors Inc. now owns 337 shares of the technology company’s stock valued at $60,000 after buying an additional 198 shares during the period. Finally, Manning & Napier Advisors LLC bought a new stake in Atlassian in the second quarter valued at approximately $27,000. Institutional investors own 94.45% of the company’s stock.

Atlassian Company Profile

Atlassian Corporation develops collaboration, project-management and workflow software for technology, business and service teams. Its products are designed to help organizations plan projects, manage software development, coordinate work and share knowledge across departments.

Its product portfolio includes Jira for project and issue tracking, Confluence for team collaboration and knowledge management, Jira Service Management for IT and enterprise service workflows, Trello for organizing tasks and projects, Loom for video messaging and screen recording, and Bitbucket for source-code management and collaboration.