Adversity is less terrifying than hope: Atlassian Corporation (TEAM)

Atlassian Corporation (NASDAQ: TEAM) stock jumped 0.91% on Monday to $204.88 against a previous-day closing price of $203.03. With 1.12 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.52 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $208.59 whereas the lowest price it dropped to was $202.01. The 52-week range on TEAM shows that it touched its highest point at $248.20 and its lowest point at $113.86 during that stretch. It currently has a 1-year price target of $225.39. Beta for the stock currently stands at 0.71.

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 -4.28%, but this was up by 10.54% over a month. Three-month performance surged to 15.23% while six-month performance rose 29.47%. The stock lost -18.98% in the past year, while it has gained 59.22% so far this year. A look at the trailing 12-month EPS for TEAM yields -1.90 with Next year EPS estimates of 2.88. For the next quarter, that number is 0.54. This implies an EPS growth rate of 7.40% for this year and 31.81% for next year. EPS is expected to grow by 23.70% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -46.00%.

Float and Shares Shorts:

At present, 257.38 million TEAM shares are outstanding with a float of 152.63 million shares on hand for trading. On Aug 30, 2023, short shares totaled 3.08 million, which was 1.20% higher than short shares on Jul 30, 2023. 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.

Institutional Ownership:

Through their ownership of 94.24% of TEAM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.72% of TEAM, in contrast to 40.32% held by mutual funds. Shares owned by individuals account for 0.82%. As the largest shareholder in TEAM with 9.49% of the stake, The Vanguard Group, Inc. holds 14,410,347 shares worth 14,410,347. A second-largest stockholder of TEAM, T. Rowe Price Associates, Inc., holds 11,925,795 shares, controlling over 7.85% of the firm’s shares. WCM Investment Management LLC is the third largest shareholder in TEAM, holding 9,503,488 shares or 6.26% stake. With a 3.12% stake in TEAM, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 4,735,189 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.32% of TEAM stock, is the second-largest Mutual Fund holder. It holds 3,519,599 shares valued at 718.21 million. T Rowe Price New Horizons Fund holds 1.96% of the stake in TEAM, owning 2,972,948 shares worth 606.66 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, TEAM reported revenue of $759.84M and operating income of -$63.25M. The EBITDA in the recently reported quarter was -$37.64M and diluted EPS was -$0.41.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TEAM since 0 analysts follow the stock currently. 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 $420.00 and a low target of $170.00, the average target price over the next 12 months is $226.55. Based on these targets, TEAM could surge 105.0% to reach the target high and fall by -17.02% to reach the target low. Reaching the average price target will result in a growth of 10.58% 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.

Summary of Insider Activity:

Insiders traded TEAM stock several times over the past three months with 2 Buys and 680 Sells. In these transactions, 1,038,366 shares were bought while 823,002 shares were sold. The number of buy transactions has increased to 19 while that of sell transactions has risen to 3,545 over the past year. The total number of shares bought during that period was 3,362,094 while 3,967,071 shares were sold.