Atlassian Corporation (NASDAQ:TEAM) insiders sold US$4.2m worth of stock last year which shareholders may not want to overlook
While it’s been a great week for Atlassian Corporation (NASDAQ:TEAM) shareholders after stock gained 7.2%, they should consider it with a grain of salt. Even though stock prices were relatively low, insiders elected to sell US$4.2m worth of stock in the last year, which could indicate some expected downturn.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Atlassian
Atlassian Insider Transactions Over The Last Year
The Chief Revenue Officer, Cameron Deatsch, made the biggest insider sale in the last 12 months. That single transaction was for US$652k worth of shares at a price of US$167 each. So what is clear is that an insider saw fit to sell at around the current price of US$166. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Insiders in Atlassian didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Atlassian better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Atlassian Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at Atlassian. In total, insiders dumped US$2.4m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Atlassian insiders own 42% of the company, worth about US$18b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Atlassian Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for Atlassian and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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