On May 26, 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 transactions over the past year, with Cannon-Brookes selling a total of 1,386,854 shares and purchasing 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 software developers, project managers, and content management. Cannon-Brookes co-founded the company with Scott Farquhar in 2002, and since then, Atlassian has grown to become a global leader in its industry.
Atlassian Corp's Business Description
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 teams to collaborate, plan, track, and manage their work. Atlassian serves a wide range of industries, including technology, finance, healthcare, and government, with customers in over 190 countries.
Insider Buy/Sell Analysis and Relationship with Stock Price
Over the past year, there have been no insider buys for Atlassian Corp, while there have been 352 insider sells. This trend could indicate that insiders believe the stock is overvalued or that they are taking profits after a period of growth. However, it is essential to consider other factors, such as the company's financial performance and market conditions, before drawing any conclusions.
On the day of Michael Cannon-Brookes's recent sale, Atlassian Corp's shares were trading at $166.01, giving the stock a market cap of $42,701.753 million. With a GuruFocus Value of $397.42, the stock has a price-to-GF-Value ratio of 0.42, indicating that it 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.
Despite the recent insider selling activity, the stock's undervaluation suggests that there may still be potential for growth. Investors should consider the company's financial performance, industry trends, and overall market conditions before making any investment decisions.
Conclusion
Michael Cannon-Brookes's recent sale of 8,614 shares of Atlassian Corp is part of a broader trend of insider selling over the past year. While this may raise concerns for some investors, it is crucial to consider the stock's current undervaluation and other factors before making any investment decisions. As always, thorough research and analysis are essential for making informed decisions in the stock market.
