On May 25, 2023, Michael Cannon-Brookes, Co-Founder, Co-CEO, and 10% Owner of Atlassian Corp (TEAM, Financial), sold 8,614 shares of the company. This move comes amidst a series of insider sell transactions over the past year, with Cannon-Brookes having sold a total of 1,386,854 shares and purchased none.
Who is Michael Cannon-Brookes?
Michael Cannon-Brookes is the Co-Founder and Co-CEO of Atlassian Corp, an Australian software company that specializes in developing products for project management, software development, and content management. Cannon-Brookes, along with his co-founder Scott Farquhar, started the company in 2002. Under their leadership, Atlassian has grown into a global enterprise with a market cap of over $42 billion.
About Atlassian Corp
Atlassian Corp is a leading provider of team collaboration and productivity software. The company's products help teams organize, discuss, and complete their work. Some of its popular products include Jira, Confluence, Bitbucket, and Trello. Atlassian serves a wide range of industries, including software, finance, healthcare, and government, with customers in over 190 countries.
Insider Trends
The insider transaction history for Atlassian Corp reveals that there have been no insider buys over the past year. In contrast, there have been 352 insider sells during the same period. This trend suggests that insiders may be taking advantage of the stock's current valuation to realize gains.
Valuation
On the day of Michael Cannon-Brookes's recent sale, shares of Atlassian Corp were trading at $160.65 apiece, giving the stock a market cap of $42,701.753 million.
With a price of $160.65 and a GuruFocus Value of $396.36, Atlassian Corp has a price-to-GF-Value ratio of 0.41. This indicates that the stock is significantly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
Analysis of Insider Buy/Sell and Relationship with Stock Price
The significant number of insider sells over the past year, coupled with the absence of insider buys, may raise concerns for some investors. However, it is essential to consider the context of these transactions and the overall performance of the company. Atlassian Corp has been experiencing consistent growth, and its stock price has been on an upward trajectory. This could be a reason for insiders to sell and capitalize on their investments.
While the stock is currently undervalued based on its GF Value, it is crucial for investors to conduct their research and consider other factors, such as the company's financial health, growth prospects, and competitive landscape, before making any investment decisions.
In conclusion, Michael Cannon-Brookes's recent sale of 8,614 shares of Atlassian Corp is part of a broader trend of insider sells over the past year. Although the stock is currently undervalued, investors should carefully evaluate the company's performance and prospects before making any investment decisions.
