Atlassian CEO Sells TEAM Shares Worth $1.47 Million

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On July 15, 2025, I noticed that Michael Cannon-Brookes, in his capacity as CEO and co-founder, sold 7,665 shares of Atlassian (TEAM) for a total value of approximately $1.47 million, according to a Form 4 filing disclosure.

Transaction summary

Metric Value
Shares Traded 7,665
Transaction Value $1.47 million
Post-Transaction Shares 421,575
Post-Transaction Value $80.8 million
YTD Performance 6.5%

Key questions

Is the size of this 7,665-share sale similar to the typical trade size that Cannon-Brookes has made in the past? Indeed, it aligns with the median trade size (approximately 7,948 shares) observed from his trades between September 18, 2024, and July 15, 2025, suggesting he’s sticking to his established pattern of selling.

In this transaction that took place on July 15, 2025, the insider sold around 1.8% of their entire shareholding.

Is this sale happening in relation to the recent market transactions? It appears that this deal was made only a day following the last recorded trade, which aligns with the frequent, rapid selling pattern exhibited by the insider throughout the past year.

What is the approximate equity value that the insider still owns in Atlassian, following the sale, as of July 15, 2025?

Company overview

Metric Value
Market Capitalization $49.4 billion
Revenue (TTM) $4.36 billion
Net Income (TTM) ($300.5 million)
One-Year Price Change 6.48%

Company snapshot

Atlassian stands as a top supplier for collaboration and productivity tools, with a workforce exceeding 12,000 individuals worldwide and catering to a broad customer base. They provide a variety of software solutions in their extensive product lineup.

  • Offers a suite of software products including Jira, Confluence, Trello, Bitbucket, and other collaboration, project management, and developer tools.
  • Serves customers worldwide, focusing on technical, business, and service teams.

Foolish take

Brooks-Cannons has an arrangement for automatic stock selloffs that comply with Securities and Exchange Commission Rule 10b5-1, similar to what many insiders at public companies have. These transactions are facilitated by a firm linked to the Trust overseeing the wealth of Brooks-Cannons and his family.

Generally speaking, Cannon-Brookes usually plans and executes his annual stock sell-offs from Atlassian, which are structured in a tax-efficient manner, around February. These transactions don’t respond to current market trends or recent occurrences but might mirror the economic evaluation that the CEO of Atlassian made at the beginning of 2025.

7,665 shares held by Cannon-Brookes represent a minimal reduction compared to the vast amount he controls in Atlassian. As per the latest proxy statement, he owns close to 50 million shares, which makes up nearly half of the Class B shares as of September 30, 2024. These special Class B shares, each carrying 10 votes, translate to approximately 43% of the overall voting power in shareholder meetings. When he decides to sell these shares, they will be converted into regular Class A stock, each with one vote per share. The smaller count of shares in the data tables above pertains only to the specific family trust that Cannon-Brookes uses for converting some of his stock holdings into readily accessible funds.

Observing here, it’s clear that Atlassian’s shares have experienced a 21% reduction so far this year. Remarkably, it maintains high valuations, with a multiple of 35 times free cash flow and 10 times sales. This is on par with the prestigious group I call “The Magnificent Seven.” Given its consistent annual sales growth and profit advancements, aligning itself with the financial giants, this valuation seems justifiable.

It seems as though the recent quarter wasn’t the ideal moment for selling Atlassian stocks publicly. Although it boasts a premium valuation, it continues to be a dynamic growth stock, making it potentially attractive in this cautious investment climate.

Glossary

Form 4: A required SEC filing disclosing insider trades of a company’s securities.

Confidential Source: A person who has exclusive access to details about a company that are not publicly known, typically being a high-ranking officer, board member, or significant stockholder.

As an insider, I’m privy to secrets that others don’t know about a company. It’s thrilling to leverage this exclusive knowledge to make strategic decisions, such as buying or selling the company’s stocks based on undisclosed, significant information. This practice is known as insider trading.

Share ownership: The portion or claim that an individual or organization has within a business, typically represented by shares.

Post-Transaction Holdings: The number of shares or value an insider owns after completing a trade.

Transaction Value: The total dollar amount received or paid in a specific securities trade.

Frequent or repeated selling of securities within a short time frame is known as high-volume trading or rapid liquidation.

Average trade size’s midpoint: The central figure among a set of trade sizes, signifying the usual quantity of transactions.

Current Year Performance: Refers to the return on a security since the beginning of the current year up until the present moment.

TTM: The 12-month period ending with the most recent quarterly report.

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2025-07-24 02:03