On September 8, 2023, Michael Cannon-Brookes, Co-CEO, Co-Founder, and 10% Owner of Atlassian Corp (TEAM, Financial), sold 8,241 shares of the company. This move is part of a larger trend for the insider, who over the past year has sold a total of 1,965,589 shares and purchased none.
Michael Cannon-Brookes is a renowned figure in the tech industry. He co-founded Atlassian Corp, a leading provider of team collaboration and productivity software, with Scott Farquhar in 2002. The company's products help teams organize, discuss, and complete their work, serving over 170,000 customers globally. Atlassian's suite of products includes JIRA, Confluence, Bitbucket, and Trello, among others.
The insider's recent sell-off comes amidst a broader trend within Atlassian Corp. Over the past year, there have been 512 insider sells and no insider buys. This trend is illustrated in the following chart:
On the day of the insider's recent sell, Atlassian Corp's shares were trading at $206.17, giving the company a market cap of $55.09 billion. Despite the insider's sell-off, the stock appears to be significantly undervalued based on its GuruFocus Value of $404.41, resulting in a price-to-GF-Value ratio of 0.51.
The GF Value is a proprietary estimate of intrinsic value developed by GuruFocus, based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts. The following factors are considered:
- 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.
The insider's sell-off, coupled with the broader trend of insider selling at Atlassian Corp, may raise eyebrows among investors. However, the stock's significant undervaluation according to its GF Value suggests that there may still be substantial upside potential. Investors should keep a close eye on Atlassian Corp's insider transactions and GF Value in the coming months.
