On July 28, 2023, Scott Farquhar, Co-CEO, Co-Founder, and 10% Owner of Atlassian Corp (TEAM, Financial), sold 8,241 shares of the company. This move is part of a larger trend for Farquhar, who over the past year has sold a total of 1,735,214 shares and purchased none.
Scott Farquhar is a key figure at Atlassian Corp, a leading provider of team collaboration and productivity software. He co-founded the company with Mike Cannon-Brookes in 2002, and since then, Atlassian has grown to serve over 170,000 customers globally. The company's products help teams organize, discuss, and complete their work, including software development, project management, and content management.
The insider transaction history for Atlassian Corp shows a clear trend: over the past year, there have been 439 insider sells and no insider buys. This could be a signal to investors about the company's future prospects, although it's important to note that insider selling can occur for many reasons, not all of which are negative.
Atlassian Corp's shares were trading at $173.1 each on the day of Farquhar's recent sale, giving the company a market cap of $46.61 billion. Despite the insider selling, the stock appears to be significantly undervalued based on its GuruFocus Value of $409.22, resulting in a price-to-GF-Value ratio of 0.42.
The GF Value is a proprietary estimate of intrinsic value developed by GuruFocus, based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow), a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, while the recent insider selling by Scott Farquhar may raise some eyebrows, the stock's current valuation suggests that Atlassian Corp may still be a good investment opportunity. As always, investors should conduct their own due diligence and consider multiple factors before making investment decisions.
