What Happened?
Shares of IT project management software company, Atlassian (NASDAQ:TEAM) fell 8% in the afternoon session after a filing with the U.S. Securities and Exchange Commission showed the company's co-founder and CEO, Michael Cannon-Brookes, sold over $1.6 million worth of shares. The sale involved multiple transactions with prices ranging from $217.68 to $218.60. While insider selling can sometimes worry investors as it may suggest a lack of confidence in the company's near-term prospects, it is not always indicative of negative developments.
Also, the software space broadly underperformed the market during the day, and that could be contributing to the weakness.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Atlassian? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Atlassian’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Atlassian is down 16.1% since the beginning of the year, and at $203.27 per share, it is trading 37.1% below its 52-week high of $322.94 from February 2025. Investors who bought $1,000 worth of Atlassian’s shares 5 years ago would now be looking at an investment worth $1,059.
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