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 September 25, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Michael Cannon-Brookes, CEO and Co-Founder of Atlassian Corp, sold shares of Class A Common Stock on September 25, 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, with weighted-average prices reported for each set of trades.
• A total of 1,849 shares were sold at a weighted-average price of $161.1916, 1,386 shares at $162.9021, 4,413 shares at $161.9076, and 300 shares at $163.61.
• The shares are held indirectly by the Cannon-Brookes Head Trust.

Sentiment

Score: 5

Explanation: The sentiment is neutral. The document simply reports stock sales under a pre-existing plan, which is a routine activity. There is no indication of positive or negative implications for the company's performance.

Positives

• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which can mitigate concerns about insider trading.

Risks

• While the sales are under a 10b5-1 plan, large insider sales can sometimes be perceived negatively by the market.

Industry Context

Insider sales are a common occurrence in publicly traded companies. The use of a 10b5-1 plan is a standard practice to allow insiders to sell shares while avoiding accusations of trading on non-public information. Investors often monitor insider transactions for signals about a company's prospects, but sales under a 10b5-1 plan are generally viewed as less informative than discretionary trades.

Comparison to Industry Standards

• Comparing Cannon-Brookes's transactions to other tech CEOs' trading activity, the scale of these sales appears relatively modest.
• Companies like Microsoft, Apple, and Amazon often see similar insider trading activity, with executives using 10b5-1 plans to manage their personal finances.
• The weighted average prices achieved are within the typical trading range for Atlassian (TEAM) during the period.

Stakeholder Impact

• The stock sale could have a minor impact on shareholders, potentially creating slight downward pressure on the stock price in the short term.

Key Dates