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Summary

  • EODHD/Others data suggests that of the 27 analysts that have covered Atlassian stock, 10 recommend holding it.
  • Atlassian reported a 24% year-on-year growth in revenue to US$ 915 million for the quarter ended March 31, 2023.
  • The consensus price target on the stock is US$ 186.95 as on July 3, 2023.

Analysts remain Neutral on Atlassian despite the software company reporting revenue growth in the first quarter of fiscal 2023. Of the 27 analysts who cover the stock, majority have recommended holding it.

Atlassian is a software producer that aims at developing systems for more efficient and effective teamwork. Its products include project planning and IT help desk solutions which are offered to clients through subscriptions, licenses, and agreements. It also owns some well-known brands such as Jira, Confluence and Trello.

For the quarter ended March 31, 2023, Atlassian reported a 24% year-on-year growth in revenue to US$ 915 million. Meanwhile, the mean recommendation rating on the stock is 2 on a scale of one to five, as on July 3, 2023. Here, one represents a ‘Strong Buy’ rating and five represents a ‘Strong Sell’ rating.

EODHD/Others data suggests that nine analysts have given TEAM a ‘Strong Buy’ rating, eight analysts have given it a ‘Buy’ rating. At the same time, ten analysts have given it a ‘Hold’ rating and none of the analysts have given it a ‘Sell’ or ‘Strong Sell’ rating.

Analysts bearish on Atlassian stock

Data on EODHD/Others suggests that analysts have turned bearish on TEAM over the past one month. The consensus price target on the stock is US$ 186.95, which is 11.41% higher than Friday’s closing price of US$167.81.

EODHD/Others data from early June suggests that brokers had revised their ratings to ‘Neutral’ on the stock. Among these was Piper Sandler that downgraded TEAM to a ‘Neutral’ rating on June 8, 2023.

However, more recently, analyst recommendations indicate a mixed view on the Atlassian stock. Berenberg gave a ‘Hold’ rating on June 29, 2023, while Wells Fargo upgraded to an ‘Overweight’ rating on June 30, 2023.

Berenberg’s price target on TEAM is US$ 150, which is 10.61% lower than its closing price on Friday.

TEAM Price Chart; Image Source: TEAM EODHD/Others

TEAM closed at US$ 167.81 on Friday, June 30, 2023. The stock hit its 52-week high of US$ 300.29 on August 10, 2022.

Insiders selling Atlassian shares

Over the previous quarter, many Atlassian insiders have sold company shares, SEC filings data suggest. Insider Gene Liu sold 275 shares of the company on May 19, 2023, at an average price of US$ 146.11. The total value of the sale was US$ 40,180.25.

Altassian insiders have filed a series of Form 4 and 144 filings over the past three months, drawing attention to the stock. The company’s co-founders Mike Cannon-Brookes and Scott Farquhar have both issued Form 4 filings to the SEC.

Form 4 is filed when an affiliate or an insider trades control stock. Both Co-CEOs and Co-Founders have sold shares of Class A common stock, with the latest filing dated June 30, 2023. Following the transaction, their ownership stands at 8,241 shares each.