Atlassian (TEAM) — the Sydney-founded software company behind developer and workplace-collaboration tools such as Jira, Confluence, Trello and Loom — climbed to a 52-week high of $184.22 on Wednesday, trading near $184.13 and lifting its market capitalization to $46.45 billion. The stock rose roughly 7% on the day and has surged 124% over the past six months.

The rally follows a strong fiscal fourth-quarter report. Atlassian’s fiscal year ends in June, so the quarter covered the April-through-June period. The company posted adjusted earnings of $1.87 per share, well above the consensus estimate of $1.50. Revenue reached $1.77 billion, beating forecasts of $1.66 billion and marking 28% year-over-year growth.

Cloud revenue was the standout, rising 31% to $1.21 billion. Cloud is now Atlassian’s largest revenue source, the result of a years-long push to move customers off its legacy server software, whose support ended in February 2024. Remaining performance obligations — contracted revenue that has been sold but not yet recognized — jumped 44% to $4.8 billion, a figure that points to strong forward demand. The quarter also delivered Atlassian’s first GAAP operating profit in more than two years, with a 12% operating margin — a milestone that drew Wall Street’s attention, given the company has historically reported GAAP losses driven largely by heavy stock-based compensation.

Analyst Upgrades Roll In

Royal Bank of Canada upgraded Atlassian to “Moderate Buy” on Tuesday, the latest in a string of positive analyst moves. Truist Financial raised its price target from $160 to $185 and kept a Buy rating, while Jefferies set a $200 target. BMO Capital Markets lifted its objective from $95 to $175 with an Outperform rating, and Bank of America upgraded the stock to Buy with a $175 target. FBN Securities raised its target to $170 with an Outperform rating, and Robert W. Baird set a $200 target.

Not everyone is bullish. TD Cowen holds a Hold rating with a $145 target, and Zacks downgraded the stock to Hold back in June. Overall, 25 analysts rate TEAM a Buy, four say Hold, and one has a Sell rating. The consensus price target stands at $178.63 — slightly below where the stock now trades, although several individual objectives, including the $200 targets from Jefferies and Robert W. Baird, sit above current levels. According to InvestingPro, the stock is currently trading below its estimated Fair Value, with 21 analysts having revised earnings estimates upward recently.

The next scheduled look at the business comes with Atlassian’s fiscal first-quarter report, which the company typically releases in late October.

Institutional Interest Stays Strong

Institutional investors hold 94.45% of the stock. California State Teachers Retirement System increased its stake by more than 7,000% in the second quarter, adding over 17.5 million units valued at roughly $1.38 billion. AQR Capital Management lifted its position by 291% in the fourth quarter, Morgan Stanley grew its holdings by 52.4% in the same period, and Norges Bank took a new position worth approximately $323 million.

On the insider side, Chief Revenue Officer Brian Duffy sold 7,617 units on August 14 at $163.00, reducing his stake by 3.35%. Chief Financial Officer James Chuong sold 9,054 units on August 19 at $172.45. Both sales were made to cover tax obligations on vested equity awards.

Chief Executive Officer Mike Cannon-Brookes, who co-founded Atlassian with Scott Farquhar in 2002, has backed the company with a personal $250 million purchase plan, a move that has drawn attention from analysts including TD Cowen.

Atlassian’s 50-day moving average sits at $110.69 and its 200-day moving average at $90.71, both well below current trading levels. The stock’s 52-week low was $56.01.

Source: CoinCentral