SAN FRANCISCO—Michael Cannon-Brookes, CEO and co-founder of Atlassian Corp (NASDAQ:TEAM), has sold a significant portion of his holdings in the company. According to a recent SEC filing, Cannon-Brookes disposed of shares amounting to approximately $2.03 million on January 21, 2025. The software giant, currently valued at $67.85 billion, has demonstrated impressive business fundamentals with an 81.55% gross profit margin, according to InvestingPro data.
The transactions involved the sale of 8,948 shares of Atlassian's Class A common stock. The shares were sold at prices ranging from $252.83 to $257.20 per share. Following these transactions, Cannon-Brookes holds 381,504 shares indirectly through a trust. The stock has shown strong momentum, trading near its 52-week high of $287.97.
These sales were executed under a pre-established Rule 10b5-1 trading plan, which Cannon-Brookes adopted in February 2024. The transactions were broken into multiple trades throughout the day, with specific prices and quantities available upon request from the SEC or Atlassian. Based on InvestingPro's Fair Value analysis, the stock appears to be trading above its intrinsic value. Investors can access detailed valuation metrics and 10+ additional ProTips through InvestingPro's comprehensive research platform.
In other recent news, Atlassian Corporation has seen significant developments. Analysts from Oppenheimer and Piper Sandler have raised their stock price targets for the company, reflecting a high level of confidence in Atlassian's growth potential. Oppenheimer has increased the price target to $300 from $270, maintaining an Outperform rating, while Piper Sandler has raised the target to $310 from $265, keeping an Overweight rating.
Atlassian's strong performance in the fiscal year 2025, marked by a 31% surge in cloud revenue, exceeding the projected 27%, has been a key factor in these adjustments. The company's successful integration of AI capabilities across its cloud platform has been instrumental in driving this growth.
Atlassian has also announced significant changes to its board of directors. Jay Parikh, a long-standing board member, will retire at the end of December 2024, and Christian Smith will join the board in January 2025. Smith, currently the Senior Vice President and Chief Revenue Officer at Splunk Inc (NASDAQ:SPLK)., brings over 25 years of experience in the commercial business sector.
Macquarie has initiated coverage on Atlassian with a Neutral rating, noting a balance of upside and downside risks in the company's outlook. The firm highlights potential near-term revenue and earnings per share upside from Atlassian's conservative guidance but expresses concerns about the company's seat-based model and the declining trend in software developer employment.
These are recent developments and investors should continue to monitor Atlassian's performance and the broader market landscape.
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