Atlassian CEO Cannon-Brookes sells over $1.2 million in company stock

Atlassian Corp (NASDAQ:TEAM ) reported that its CEO and Co-Founder, Michael Cannon-Brookes, sold a significant portion of his holdings in the company. The transactions, which took place on September 18, 2024, involved the sale of Class A Common Stock totaling over $1.2 million.

The sales were executed in multiple trades with prices ranging from $156.905 to $163.07. The stock sold by Cannon-Brookes, which is held by CBC Co Pty Limited as trustee for the Cannon-Brookes Head Trust, included several separate transactions. The largest single batch of shares sold at the weighted-average price of $160.5717, while other portions were sold at various prices within the stated range.

Following the sales, the CEO still retains a substantial amount of Atlassian stock, with the filings indicating post-transaction ownership of 63,584 shares, all of which are indirectly owned by the trust.

The transactions were carried out in accordance with a Rule 10b5-1 trading plan, which was adopted by Cannon-Brookes earlier in the year on February 8, 2024. This trading plan allows company insiders to set up a predetermined schedule for buying and selling securities to avoid any accusations of insider trading.

Atlassian, known for its collaboration and productivity software, has not made any official statement regarding these transactions. Investors and analysts often monitor insider sales for insights into executives' perspectives on their company's prospects, but such sales can also be part of routine financial planning and diversification strategies.

As of the last trade, Atlassian Corp's stock was trading on the NASDAQ exchange, reflecting the dynamic nature of the market and the ongoing activities of its executives.



"In other recent news, Atlassian Corporation reported robust financial results for the fourth quarter of fiscal year 2024, with revenues reaching $4.4 billion and free cash flow exceeding $1.4 billion. The company has also announced price adjustments to its cloud-based products, including Jira Software, Confluence, and Jira Service Management. Mizuho Securities maintains its Outperform rating on Atlassian, citing the company's pricing power and the expected significant migrations from Data Center to Cloud platforms in the coming years.

In other recent developments, Atlassian's co-CEO Scott Farquhar will be transitioning to a board member and special advisory position. The company's acquisition of Loom is expected to boost cloud revenue growth in FY25. Atlassian is also committed to a three-year 20%+ compound annual growth rate in revenue, even though cloud revenue growth is anticipated to decelerate in FY25.

These recent developments highlight Atlassian's strategic focus on cloud-based services and its confidence in achieving over $10 billion in annual revenue despite macroeconomic uncertainties and anticipated pressure on paid seat expansion in FY25."
InvestingPro Insights


Atlassian Corp's (NASDAQ:TEAM) recent insider transactions come at a time when the company is navigating through a challenging financial landscape. According to InvestingPro data, Atlassian boasts an impressive gross profit margin of 81.57% for the last twelve months as of Q4 2024. This indicates the company's ability to maintain profitability in its core operations despite broader market conditions. In line with the optimistic view on profitability, one of the InvestingPro Tips suggests that analysts predict the company will be profitable this year, providing a potential upside to investors considering the stock's future.

The company's market capitalization stands at $42.35 billion, reflecting its significant presence in the productivity software market. However, it's worth noting that Atlassian is trading at a high Price / Book multiple of 40.65, which could suggest that the stock is priced at a premium compared to its book value. This aligns with another InvestingPro Tip highlighting that the company is trading at a high revenue valuation multiple, a factor that value-focused investors may consider when evaluating the stock.

For investors looking to understand the company's stock performance, Atlassian has experienced a 1-week price total return of -3.53%, and a more positive 3-month price total return of 4.35%. These short-term movements may be of interest to traders and those looking to capitalize on market volatility. For more detailed analysis and additional InvestingPro Tips, interested parties can explore further at https://www.investing.com/pro/TEAM, where 12 additional tips are available to help inform investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com