SAN FRANCISCO—Michael Cannon-Brookes, CEO and Co-Founder of Atlassian Corp (NASDAQ:TEAM), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Cannon-Brookes sold shares valued at approximately $1.5 million. The transactions occurred on October 23, 2024, with prices ranging from $187.68 to $192.59 per share.
The sales were conducted through a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling shares. Following these transactions, Cannon-Brookes still owns 376,056 shares of Atlassian, held indirectly by CBC Co Pty Limited as a trustee for the Cannon-Brookes Head Trust.
Atlassian, known for its collaboration and productivity software, continues to be a key player in the tech industry, with its stock trading under the symbol TEAM on the NASDAQ. Investors and market watchers will be keeping an eye on any further transactions from the company's executives.
In other recent news, Atlassian Corporation has reported robust financial results for the fourth quarter of fiscal year 2024, with revenues totaling $4.4 billion and a free cash flow exceeding $1.4 billion. The company's strategic acquisition of Loom is projected to enhance cloud revenue growth in FY25. Analyst firms have recognized Atlassian's performance, with Morgan Stanley positioning the company as their 'Top Pick' and projecting approximately 25% free cash flow growth.
Citi and Goldman Sachs have reaffirmed their Buy ratings, while Piper Sandler maintains an Overweight rating on Atlassian shares. Wolfe Research increased Atlassian's price target to $240 due to positive customer response to the company's AI product, Rovo, and price increases for data center and cloud products.
Atlassian's recent advancements include the general availability of Rovo and Guard Premium, which were released faster than expected. The company's increased in-product Atlassian Intelligence capabilities and enhancements to the Jira platform are also noteworthy. In other recent developments, Atlassian's co-CEO Scott Farquhar will transition to a board member and special advisory position, and the company's cloud security capabilities are reportedly attracting government and defense customers.
InvestingPro Insights
To provide additional context to Michael Cannon-Brookes' recent stock sale, let's delve into some key financial metrics and insights for Atlassian Corp (NASDAQ:TEAM).
According to InvestingPro data, Atlassian boasts a market capitalization of $49.45 billion, reflecting its significant presence in the tech industry. The company's revenue for the last twelve months as of Q4 2024 stood at $4.36 billion, with an impressive revenue growth of 23.31% over the same period. This growth trajectory aligns with Atlassian's position as a leading player in the collaboration software market.
One of the standout metrics is Atlassian's gross profit margin of 81.57% for the last twelve months as of Q4 2024. This high margin is indicative of the company's efficient cost management and the value of its software offerings. An InvestingPro Tip highlights this strength, noting Atlassian's "impressive gross profit margins."
Despite strong top-line performance, it's worth noting that Atlassian is currently not profitable over the last twelve months, with an operating income of -$117.08 million. However, another InvestingPro Tip suggests that "analysts predict the company will be profitable this year," which could signal a potential turnaround in the near future.
For investors considering Atlassian's stock, it's important to note that the company is trading at a high Price / Book multiple of 47.8. This valuation metric, combined with the recent insider sale by the CEO, may warrant careful consideration.
These insights are just a snapshot of the comprehensive analysis available on InvestingPro. In fact, there are 11 additional InvestingPro Tips for Atlassian that could provide further valuable insights for investors looking to make informed decisions about this dynamic tech company.
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