In a recent move, Atlassian Corp's (NASDAQ:TEAM) Co-CEO and Co-Founder, Michael Cannon-Brookes, sold a significant amount of company stock, totaling over $1.6 million. The transactions were executed on April 15, 2024, and involved the sale of Class A Common Stock at prices ranging from $192.11 to $208.77.
Cannon-Brookes, who also serves as a director and a ten percent owner of the company, reported these sales through a Form 4 filing with the Securities and Exchange Commission (SEC). According to the filing, the sales were conducted in multiple trades throughout the day, with the prices of the shares varying within the reported range.
The total value of the non-derivative securities sold by Cannon-Brookes amounted to approximately $1,627,275. This series of transactions has adjusted his ownership in the company to 424,137 shares following the sales.
The SEC filing included footnotes indicating that these transactions were made pursuant to a Rule 10b5-1 trading plan, which was adopted by Cannon-Brookes on February 21, 2023. A Rule 10b5-1 trading plan allows insiders of publicly traded corporations to set up a trading plan for selling stocks they own, enabling them to avoid accusations of insider trading by scheduling the transactions ahead of time.
Atlassian, known for its collaboration, development, and issue-tracking software for teams, has its Class A Common Stock listed under the ticker symbol TEAM on the NASDAQ exchange.
The filing was signed on behalf of Michael Cannon-Brookes by Veena Bhatia, Attorney-in-Fact, as of April 16, 2024. The transactions were disclosed in accordance with federal securities laws, and the reporting person has undertaken to provide full information regarding the number of shares and the prices at which the transactions were effected upon request by the SEC staff, the issuer, or a security holder of the issuer.
InvestingPro Insights
In light of the recent stock sales by Atlassian Corp's (NASDAQ:TEAM) Co-CEO Michael Cannon-Brookes, potential investors and current shareholders may find the following InvestingPro data and tips particularly informative. As of the last twelve months leading up to Q2 2024, Atlassian boasts a robust gross profit margin of 81.97%, suggesting efficient management and a strong market position for its collaboration and development software. This aligns with one of the InvestingPro Tips, which highlights the company's impressive gross profit margins.
Despite not being profitable over the last twelve months, with a net income growth expectation for this year, Atlassian is trading at a high revenue valuation multiple, indicating investor confidence in the company's future growth prospects. This is further supported by the fact that analysts predict the company will turn a profit this year, as per another InvestingPro Tip. The market capitalization adjusted for the same period stands at $50.55 billion, reflecting the company's significant presence in the market.
However, Atlassian is currently trading at a high Price / Book multiple of 55.86, which suggests that the stock may be valued richly in terms of its net assets. For those considering an investment, it's worth noting that Atlassian does not pay a dividend to shareholders, which may be a consideration for income-focused investors. For a deeper dive into Atlassian's financial health and future prospects, interested parties can access additional tips on InvestingPro, which lists a total of 9 InvestingPro Tips for TEAM. To enhance your investing strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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