Atlassian stock price: red flag as insiders dump TEAM shares

June 27, 2023 08:15 AM PDT | By Invezz

Atlassian stock price: red flag as insiders dump TEAM shares — Image source: Invezz

TEAM insiders are selling

Atlassian is not a name many people know about. But it is a popular technology company that many firms in the United States use. It owns some key brands like Jira, Confluence, and Trello. These products are used by over 75k customers, including well-known brands like Twilio, Morningstar, Rent the Runway, and New York Times among others.

Atlassian’s business has been growing in the past few years. Its annual revenue jumped from over $148 million in 2013 to over $2.58 billion in 2022. This growth has been very costly as the company has made substantial losses. Its annual loss in 2022 came in at over $614 million. Analysts believe that the company will turn a profit this year.

Despite all this, there is one major red flag to consider. In most cases, we recommend that investors should buy companies where insiders are confident about the operations. Unfortunately, Atlassian’s insiders have been selling the shares at a fast pace.

Data compiled by MarketBeat shows that its insiders are the most aggressive sellers in Wall Street. Scott Farquhar, the CEO has sold over $7.2 million worth of shares this month alone. His total sales this year has been enormous. Other insiders who have sold shares are Enrique Salem (director) and Rajeev Bashyann Rajan, the Chief Technology Officer.

In all, as shown below, insider sales started in Q4 of last year and have continued in the past three quarters. In the past 12 months, they have sold shares worth over $134 million. No insider has bought the company’s stock.

Atlassian insider sales

To be clear. Insiders sell shares at all time for different reasons. And in the case of Atlassian, they still hold about 46% of the entire company. However, the fact that no insider is buying is a red flag since it could be a sign that they are not confident in the company.

Atlassian stock price forecast

TEAM chart by TradingView

Is it safe to buy the Atlassian stock? The daily chart shows that the TEAM stock price has been in a strong downward trend in the past few days. This retreat happened after the stock retested the important resistance point at $187.48. This price was an important one since it was the double-top level. It has also moved below the 50-day and 100-day moving averages.

Therefore, the shares will likely continue falling as sellers target the neckline of this double-top at $128.46. A move above the resistance at 187.48p will invalidate the bearish view.

The post Atlassian stock price: red flag as insiders dump TEAM shares appeared first on Invezz.

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