Atlassian Corporation (NASDAQ: TEAM) stock fell -1.86% on Tuesday to $151.70 against a previous-day closing price of $154.58. With 2.21 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.57 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $153.03 whereas the lowest price it dropped to was $147.04. The 52-week range on TEAM shows that it touched its highest point at $352.92 and its lowest point at $113.86 during that stretch. It currently has a 1-year price target of $191.76. Beta for the stock currently stands at 0.78.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TEAM was down-trending over the past week, with a drop of -0.79%, but this was up by 8.65% over a month. Three-month performance dropped to -21.84% while six-month performance fell -22.62%. The stock lost -46.40% in the past year, while it has gained 17.89% so far this year. A look at the trailing 12-month EPS for TEAM yields -0.90 with Next year EPS estimates of 1.98. For the next quarter, that number is 0.31. This implies an EPS growth rate of 13.10% for this year and 42.22% for next year. EPS is expected to grow by 20.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 31.15%.
Float and Shares Shorts:
At present, 255.17 million TEAM shares are outstanding with a float of 145.37 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.88 million, which was 1.52% higher than short shares on Sep 14, 2022. In addition to Mr. Michael Cannon-Brookes as the firm’s Co-Founder, Co-CEO & Director, Mr. Scott Farquhar serves as its Co-Founder, Co-CEO & Director.
Through their ownership of 92.10% of TEAM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.77% of TEAM, in contrast to 27.98% held by mutual funds. Shares owned by individuals account for 1.14%. As the largest shareholder in TEAM with 12.84% of the stake, T. Rowe Price Associates, Inc. holds 19,036,183 shares worth 19,036,183. A second-largest stockholder of TEAM, Baillie Gifford & Co., holds 7,643,211 shares, controlling over 5.16% of the firm’s shares. Jennison Associates LLC is the third largest shareholder in TEAM, holding 7,134,346 shares or 4.81% stake. With a 3.04% stake in TEAM, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 4,510,535 shares are owned by the mutual fund manager. The T Rowe Price New Horizons Fund, which owns about 3.03% of TEAM stock, is the second-largest Mutual Fund holder. It holds 4,495,107 shares valued at 578.43 million. Vanguard Mid Cap Index Fund holds 2.33% of the stake in TEAM, owning 3,453,288 shares worth 444.37 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TEAM since 27 analysts follow the stock currently. There are 17 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TEAM analysts setting a high price target of $460.00 and a low target of $140.00, the average target price over the next 12 months is $191.76. Based on these targets, TEAM could surge 203.23% to reach the target high and fall by -7.71% to reach the target low. Reaching the average price target will result in a growth of 26.41% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TEAM will report FY 2023 earnings on 07/27/2023. Analysts have provided yearly estimates in a range of $1.79 being high and $1.12 being low. For TEAM, this leads to a yearly average estimate of $1.34. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Atlassian Corporation surprised analysts by -$0.04 when it reported $0.36 EPS against a consensus estimate of $0.40. The surprise factor in the prior quarter was -$0.00. Based on analyst estimates, the high estimate for the next quarter is $0.42 and the low estimate is $0.22. The average estimate for the next quarter is thus $0.29.
Summary of Insider Activity:
Insiders traded TEAM stock several times over the past three months with 11 Buys and 867 Sells. In these transactions, 1,113,176 shares were bought while 895,332 shares were sold. The number of buy transactions has increased to 12 while that of sell transactions has risen to 1,217 over the past year. The total number of shares bought during that period was 1,181,555 while 1,170,980 shares were sold.