Form 4: Atlassian CEO Michael Cannon-Brookes Executes Stock Sales Under 10b5-1 Plan

Atlassian CEO Michael Cannon-Brookes sold shares of Class A Common Stock on May 15, 2025, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Michael Cannon-Brookes, CEO and Co-Founder of Atlassian Corp, executed multiple sales of Class A Common Stock on May 15, 2025.
• The sales were conducted under a Rule 10b5-1 trading plan adopted on February 8, 2024.
• The transactions involved the disposal of shares held directly and indirectly through the Cannon-Brookes Head Trust.
• The prices per share ranged from $217.57 to $222.55 across various transactions.
• A total of 800 shares were sold at a weighted average price of $218.0183.
• An additional 2,802 shares were sold at a weighted average price of $221.24.
• Further sales included 700 shares at $222.022, 526 shares at $219.3233, and 3,120 shares at $220.4273.
• Following these transactions, the reporting person still beneficially owns a significant number of shares indirectly through a trust.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The stock sales are part of a pre-arranged plan, suggesting they are not necessarily indicative of a negative outlook on the company. However, any insider selling can create some uncertainty.

Positives

• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which is a legal and transparent way for insiders to sell shares.

Industry Context

Insider sales are a common occurrence in publicly traded companies, and the use of 10b5-1 plans is a standard practice to avoid accusations of trading on non-public information. The market typically analyzes the size and frequency of such sales to gauge insider sentiment.

Comparison to Industry Standards

• Comparing these transactions to other tech company executives' stock sales, the amounts are within a normal range for executives utilizing 10b5-1 plans.
• Companies like Microsoft, Alphabet, and Amazon also see regular insider sales under similar plans.
• The key difference lies in the market's perception of the company's future prospects; strong outlooks tend to mitigate any negative impact from insider sales.

Stakeholder Impact

• Shareholders may react to the news of insider selling, although the existence of a 10b5-1 plan mitigates potential concerns.
• Employees may be indirectly affected by any stock price fluctuations resulting from the transactions.

Key Dates

Keywords

Atlassian, TEAM, Michael Cannon-Brookes, Stock Sale, Form 4, Rule 10b5-1, Insider Trading, CBC Co Pty Limited, Cannon-Brookes Head Trust