Form 4: Atlassian CEO Michael Cannon-Brookes Sells Shares Under 10b5-1 Trading Plan

Atlassian CEO Michael Cannon-Brookes executed multiple sales of Class A Common Stock on October 15, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Michael Cannon-Brookes, CEO and Co-Founder of Atlassian, reported the sale of Class A Common Stock on October 15, 2024.
• The sales were executed under a Rule 10b5-1 trading plan adopted on February 8, 2024.
• The transactions involved multiple trades at varying prices, ranging from $190.45 to $195.18 per share.
• A total of 7,948 shares were sold, resulting in a change in beneficial ownership.
• The shares are held indirectly by CBC Co Pty Limited as trustee for the Cannon-Brookes Head Trust.
• Following the reported transactions, Cannon-Brookes indirectly owns 421,244 shares through the trust.

Sentiment

Score: 5

Explanation: The document is a routine SEC filing related to stock sales under a pre-arranged trading plan. It doesn't convey any particularly positive or negative sentiment about the company's performance or future prospects.

Industry Context

Insider sales are a common occurrence, especially when executed under pre-arranged trading plans like Rule 10b5-1. These plans allow insiders to sell shares at predetermined times and prices, avoiding accusations of trading on non-public information. The market typically views these sales in the context of the overall trading plan and the insider's remaining holdings.

Comparison to Industry Standards

• Comparing Cannon-Brookes' transactions to other tech CEOs, similar sales under 10b5-1 plans are frequent.
• For example, executives at companies like Microsoft and Amazon routinely use such plans to diversify their holdings.
• The size of the sale (7,948 shares) is relatively small compared to the total holdings, suggesting it's part of a planned diversification strategy rather than a reaction to company performance.
• The weighted average prices achieved are within a normal trading range for Atlassian's stock, indicating no unusual market impact.

Stakeholder Impact

• The stock sale may have a minor impact on shareholders due to the slight dilution of shares.
• However, given the pre-arranged nature of the sale and the relatively small number of shares involved, the impact is likely to be minimal.

Key Dates