Atlassian (NASDAQ:TEAM) Upgraded by Bank of America to “Buy” Rating

Bank of America upgraded shares of Atlassian (NASDAQ:TEAM) from a neutral rating to a buy rating in a research report report published on Friday, Marketbeat reports. The firm currently has $175.00 target price on the technology company’s stock.

Other equities analysts have also issued reports about the company. Wall Street Zen lowered Atlassian from a “strong-buy” rating to a “buy” rating in a research note on Saturday, May 30th. Piper Sandler reduced their price objective on Atlassian from $200.00 to $175.00 and set an “overweight” rating on the stock in a research note on Friday, May 1st. Citigroup decreased their price objective on Atlassian from $160.00 to $110.00 and set a “buy” rating on the stock in a report on Friday, May 1st. Morgan Stanley lowered their target price on Atlassian from $290.00 to $120.00 and set an “overweight” rating for the company in a research report on Thursday, April 16th. Finally, Wells Fargo & Company raised their target price on shares of Atlassian from $140.00 to $180.00 and gave the company an “overweight” rating in a report on Friday. Twenty-three analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $172.88.

Atlassian Stock Performance

TEAM opened at $149.07 on Friday. The company has a debt-to-equity ratio of 1.13, a quick ratio of 0.70 and a current ratio of 0.70. The stock has a market capitalization of $37.83 billion, a price-to-earnings ratio of -784.58, a PEG ratio of 7.91 and a beta of 1.05. The company has a fifty day moving average of $93.01 and a 200 day moving average of $86.92. Atlassian has a fifty-two week low of $56.01 and a fifty-two week high of $184.00.

Atlassian (NASDAQ:TEAM) last announced its quarterly earnings results on Thursday, August 6th. The technology company reported $1.87 EPS for the quarter, topping 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 20.07%. The business had revenue of $1.77 billion for the quarter, compared to analysts’ expectations of $1.66 billion. During the same quarter in the previous year, the company earned $0.98 EPS. The business’s quarterly revenue was up 27.6% compared to the same quarter last year. As a group, sell-side analysts forecast that Atlassian will post 0.67 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO James Chuong sold 8,838 shares of Atlassian stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $87.75, for a total value of $775,534.50. Following the completion of the transaction, the chief financial officer owned 288,272 shares in the company, valued at approximately $25,295,868. The trade was a 2.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Brian Duffy sold 3,000 shares of the business’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $89.71, for a total value of $269,130.00. Following the transaction, the executive directly owned 227,691 shares in the company, valued at approximately $20,426,159.61. This represents a 1.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 20,041 shares of company stock worth $1,801,069. Company insiders own 36.66% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Baillie Gifford & Co. lifted its holdings in shares of Atlassian by 3.9% in the 4th quarter. Baillie Gifford & Co. now owns 8,431,802 shares of the technology company’s stock worth $1,367,132,000 after acquiring an additional 316,276 shares during the last quarter. Exane Asset Management grew its holdings in Atlassian by 419.9% during the 4th quarter. Exane Asset Management now owns 31,363 shares of the technology company’s stock valued at $5,085,000 after purchasing an additional 25,330 shares during the last quarter. Nicholas Company Inc. grew its holdings in Atlassian by 8.7% during the 4th quarter. Nicholas Company Inc. now owns 306,819 shares of the technology company’s stock valued at $49,748,000 after purchasing an additional 24,490 shares during the last quarter. Fisher Funds Management LTD raised its position in Atlassian by 11.1% in the 4th quarter. Fisher Funds Management LTD now owns 334,011 shares of the technology company’s stock worth $54,440,000 after purchasing an additional 33,485 shares during the period. Finally, Merit Financial Group LLC raised its position in Atlassian by 339.8% in the 4th quarter. Merit Financial Group LLC now owns 31,565 shares of the technology company’s stock worth $5,118,000 after purchasing an additional 24,388 shares during the period. Institutional investors own 94.45% of the company’s stock.

Trending Headlines about Atlassian

Here are the key news stories impacting Atlassian this week:

• Positive Sentiment: Results exceeded expectations: Atlassian reported adjusted earnings of $1.87 per share, versus the $1.50 consensus estimate, while revenue rose 27.6% year over year to $1.77 billion, ahead of the $1.66 billion forecast. Atlassian beats quarterly estimates on strong cloud demand
• Positive Sentiment: Cloud and enterprise momentum supported the rally: Cloud revenue grew 31% to $1.21 billion, Data Center revenue topped estimates, and the company cited record large enterprise contracts, strong subscription demand and rising adoption of its AI-powered Rovo platform. TEAM Q4 Earnings Call Highlights AI and Enterprise Momentum
• Positive Sentiment: Fiscal 2027 guidance was viewed favorably: Management’s cloud revenue outlook exceeded expectations, and first-quarter revenue guidance of approximately $1.7 billion was above or in line with consensus, reinforcing confidence in continued growth. Atlassian earnings beat drives 30% stock surge
• Positive Sentiment: Analyst support strengthened: Bank of America upgraded TEAM to Buy with a $175 target, while BMO raised its target to $175 and Oppenheimer lifted its target to $200 with an Outperform rating. Unusually heavy call-option activity also reflected bullish near-term positioning.
• Neutral Sentiment: Atlassian’s results were interpreted as a potential turning point for software stocks broadly, suggesting investors may again be rewarding solid fundamentals despite AI-disruption concerns. Software Stocks Trade Like It’s 2022 After Atlassian Leads Earnings Rally
• Negative Sentiment: The company still faces external uncertainty, and the sharp rebound leaves TEAM trading near the upper end of its recent range, increasing the risk of profit-taking if cloud growth or AI adoption slows.

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.