Atlassian shares reached a 52-week high of $184.22 during Wednesday’s session, trading near $184.13 as the stock climbed almost 7% on the day. The collaboration software company — known for products such as Jira, Confluence, and Trello — saw its market capitalization stand at $46.45 billion, and the shares have gained 124% over the past six months.

The rally followed Atlassian’s fiscal fourth-quarter results, which cover the April-through-June period because the company’s fiscal year ends in June. The quarter showed adjusted earnings per share of $1.87, well above the Street estimate of $1.50. Revenue came in at $1.77 billion, topping the $1.66 billion consensus and rising 28% from the same period a year earlier.

Cloud revenue was a standout, increasing 31% year over year to $1.21 billion, a closely watched figure given Atlassian’s multiyear shift from licensed server and data center products to subscription-based cloud offerings. Remaining performance obligations rose 44% to $4.8 billion, indicating stronger future revenue visibility and customer demand.

The quarter also marked a notable profitability milestone for the company. Atlassian posted its first GAAP operating profit in more than two years, with a 12% operating margin. The company has reported GAAP operating losses in recent years even while posting adjusted profits, a gap driven largely by stock-based compensation, so the return to GAAP profitability reflects a change in the financial profile investors have monitored throughout the cloud transition.

Wall Street Analysts Turn More Positive

Royal Bank of Canada upgraded Atlassian to a “Moderate Buy” rating on Tuesday, adding to a series of bullish analyst revisions. Truist Financial raised its price target from $160 to $185 while keeping a Buy rating. Jefferies set a $200 target, and BMO Capital Markets lifted its forecast from $95 to $175 with an Outperform rating.

Bank of America upgraded the stock to Buy and increased its price target to $175. FBN Securities raised its target to $170 with an Outperform rating, while Robert W. Baird set a $200 price target.

Not all firms are as positive. TD Cowen maintains a Hold rating with a $145 price objective, and Zacks Research downgraded the stock to Hold in June.

At present, 25 analysts rate TEAM as a Buy, four rate it Hold, and one rates it Sell. The consensus price target is $178.63, leaving the average estimate slightly below where the stock now trades even as several individual targets sit at $185 to $200. InvestingPro analysis said the shares are trading below calculated fair value, and 21 analysts have recently raised their earnings estimates. The focus now shifts to whether cloud growth, remaining performance obligations, and the new GAAP profitability hold up when Atlassian reports its fiscal first quarter, which covers the July-through-September period.

Institutional Ownership and Insider Activity

Institutional investors hold 94.45% of Atlassian’s outstanding shares, a level of ownership typical of large-cap software companies. California State Teachers Retirement System, one of the largest U.S. public pension funds, increased its position by more than 7,000% in the second quarter, building a stake of more than 17.5 million shares valued at about $1.38 billion.

AQR Capital Management increased its holding by 291% in the fourth quarter. Morgan Stanley boosted its position by 52.4% over the same period, while Norges Bank opened a new stake worth about $323 million.

On the insider side, CRO Brian Duffy sold 7,617 shares on August 14 at $163.00 per share, reducing his holdings by 3.35%. CFO James Chuong sold 9,054 shares on August 19 at $172.45 each. Both sales were made to satisfy tax withholding obligations tied to vested equity compensation.

CEO and co-founder Mike Cannon-Brookes has also drawn attention with a personal $250 million stock purchase plan, a move that has been noted by analysts including TD Cowen.

Atlassian’s 50-day moving average is $110.69, while its 200-day moving average is $90.71. The 52-week low was $56.01, meaning the stock has more than tripled from that level over the past year.