On May 23, 2023, Michael Cannon-Brookes, Co-CEO, Co-Founder, and 10% Owner of Atlassian Corp (TEAM, Financial), sold 8,614 shares of the company. This recent transaction is part of a broader trend of insider selling at Atlassian Corp, with 350 insider sells over the past year and no insider buys during the same period.
Who is Michael Cannon-Brookes?
Michael Cannon-Brookes is the Co-CEO and Co-Founder 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 $42,701.753 million.
About Atlassian Corp
Atlassian Corp is a leading provider of collaboration, development, and issue tracking software for teams. The company's products include Jira, Confluence, Bitbucket, and Trello, which help organizations manage projects, track issues, and collaborate more effectively. Atlassian serves a wide range of industries, including technology, finance, healthcare, and government, with customers in over 190 countries.
Insider Trading Analysis
Over the past year, Michael Cannon-Brookes has sold a total of 1,378,240 shares and purchased 0 shares. This pattern of insider selling is consistent with the broader trend at Atlassian Corp, which has seen 350 insider sells and 0 insider buys over the past year. This could indicate that insiders believe the stock is overvalued or that they are taking profits after a period of strong performance.
It is important for investors to consider insider trading activity when evaluating a stock, as it can provide valuable insights into the sentiment of company insiders. However, it is also crucial to analyze other factors, such as the company's financial performance, industry trends, and overall market conditions, before making investment decisions.
Stock Valuation
On the day of Michael Cannon-Brookes's recent sale, shares of Atlassian Corp were trading at $160.46 apiece, giving the stock a market cap of $42,701.753 million. With a GuruFocus Value of $396.36, Atlassian Corp has a price-to-GF-Value ratio of 0.4, indicating that the stock is significantly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus, which is 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.
While the recent insider selling activity at Atlassian Corp may raise concerns for some investors, the stock's current valuation suggests that it could still be an attractive investment opportunity. Investors should carefully consider the company's financial performance, industry trends, and overall market conditions, in addition to insider trading activity, before making any investment decisions.
