Atlassian Corp (NASDAQ:TEAM) Co-CEO and Co-Founder Michael Cannon-Brookes has sold a portion of his holdings in the company, according to a recent filing with the Securities and Exchange Commission. The transactions, which occurred on March 18, 2024, involved the sale of Class A Common Stock totaling over $1.6 million.
The SEC filing revealed that Cannon-Brookes sold a total of 6,241 shares at prices ranging from $195.7204 to $198.1972. The sales were conducted through a series of transactions throughout the day, and the prices reported are the weighted averages of these trades.
Specifically, the executive sold 625 shares at an average price of $198.1972, 4,004 shares at $197.6383, 550 shares at $195.7204, and 3,062 shares at an average price of $196.812. Following these transactions, Cannon-Brookes still holds a substantial amount of Atlassian stock, with the latest reported figures indicating ownership of 65,928 shares.
The filing also notes that the shares are held by CBC Co Pty Limited as trustee for the Cannon-Brookes Head Trust. This indicates that the transactions were made indirectly through a trust.
These sales were executed in accordance with a pre-arranged Rule 10b5-1 trading plan, which Cannon-Brookes had adopted on February 21, 2023. Such plans allow company insiders to establish predetermined trading arrangements for selling stocks at a time when they are not in possession of material non-public information, providing a defense against potential accusations of insider trading.
The SEC document was signed on behalf of Cannon-Brookes by Veena Bhatia, Attorney-in-Fact, on March 19, 2024. The filing provides transparency into the trading activities of company insiders and is a routine disclosure for public companies and their executives.
InvestingPro Insights
As Atlassian Corp's (NASDAQ:TEAM) Co-CEO and Co-Founder Michael Cannon-Brookes adjusts his holdings, investors may be keen to understand the company's current financial health and market performance. Here are some insights from InvestingPro that might offer a clearer picture of Atlassian's standing:
Despite recent insider selling, Atlassian boasts an impressive Gross Profit Margin of 81.97% for the last twelve months as of Q2 2024. This indicates a strong ability to manage costs and maximize profit from their revenues. Moreover, while the company has been operating at a loss, with an Operating Income Margin of -4.7%, analysts predict that Atlassian will be profitable this year, as per an InvestingPro Tip. This projection could signal a potential turnaround in the company's financial trajectory.
However, the stock has experienced significant volatility, with a 1 Week Price Total Return of -9.36% as of Y2024.D79. This aligns with another InvestingPro Tip that notes the stock has taken a big hit over the last week. Such fluctuations may be of interest to investors looking for entry points or considering the timing of their investments.
Atlassian's Market Cap stands at 50.96B USD, reflecting its significant presence in the market despite recent price movements. With a Price / Book ratio of 56.31, the company is trading at a high valuation relative to its book value, which might suggest investor confidence in its future growth or the premium quality of its assets and market position.
For those interested in a deeper analysis, InvestingPro offers additional InvestingPro Tips on Atlassian Corp, which can be accessed through their platform. To enhance your research experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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