On July 15, 2025, Michael Cannon-Brookes (CEO, Co-Founder) reported selling 7,665 shares of Atlassian(TEAM -1.25%) for a total consideration of $1.47 million, as disclosed in a Form 4 filing.
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
How does the size of this sale compare to the insider's historical trading activity?
The 7,665-share sale is in line with the historical median trade size (~7,948 shares) for Cannon-Brookes, based on his trades from Sept. 18, 2024, to July 15, 2025, reflecting a continuation of established selling patterns.
What portion of the insider's total holdings was sold in this transaction?
This sale, completed on July 15, 2025, represented approximately 1.8% of the insider's post-sale equity stake.
How does the timing of this sale relate to recent trading activity?
This transaction occurred just one day after the prior reported trade, consistent with the insider's high-frequency selling cadence observed over the past year.
What is the current value of the insider's remaining shareholding?
Following the sale, the insider retained approximately $80.8 million in equity value in Atlassian 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 is a leading provider of collaboration and productivity software, employing over 12,000 people and serving a global customer base. It offers a diversified suite of software products.
- 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
Cannon-Brookes has an automated stock-sale plan under Securities and Exchange Commission Rule 10b5-1, like many other insiders in public companies. These sales are executed by a firm tied to the Cannon-Brookes Head Trust, which manages wealth for him and his family.
His annual stock sales schedule is typically reviewed and set up in February, with trades taking effect throughout the year. In other words, Cannon-Brookes is simply monetizing some of his Atlassian stock holdings in a tax-effective way. The sales have no bearing on current market conditions or recent events, though they may reflect the economic analysis that the Atlassian CEO conducted at the start of 2025.
Those 7,665 shares were a small drop in a large bucket. Atlassian's most recent proxy statement shows that Cannon-Brookes controlled almost 50 million shares as of Sept. 30, 2024. He holds 50% of Atlassian's Class B shares, which, with their special 10-votes-per-share feature, give him about 43% of the total voting power in shareholder meetings. (Those shares get converted to normal, one-vote-per-share Class A stock when he sells them.) The smaller share count seen in the data tables above only concerns the specific family trust that Cannon-Brookes uses to convert some of his stock holdings into spendable cash.
That being said, Atlassian's stock has taken a 21% haircut year to date. It still trades at the lofty valuations of 35 times free cash flow and 10 times sales, which is comparable to stocks in the "Magnificent Seven." This makes sense, since Atlassian also keeps up with the trillion-dollar Joneses in terms of its annual sales growth and profit increases.
The last quarter didn't look like the best time to sell Atlassian stock on the open market. Despite its rich valuation, it remains a high-octane growth stock that may be a great buy in this risk-averse market dip.
Glossary
Form 4: A required SEC filing disclosing insider trades of a company's securities.
Insider: An individual with access to non-public company information, often an executive, director, or major shareholder.
Insider trading: Buying or selling a company's securities by someone with access to material, non-public information.
Equity stake: The ownership interest an individual or entity holds in a company, usually expressed as 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.
High-frequency selling: The practice of making frequent, regular sales of securities over a short period.
Median trade size: The middle value in a series of trade sizes, indicating typical transaction volume.
YTD Performance: Year-to-date performance; measures a security's return from the start of the year to the present.
TTM: The 12-month period ending with the most recent quarterly report.
