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

Atlassian CEO Michael Cannon-Brookes sold a total of 7,948 Class A common stock shares on December 2, 2024, under a pre-arranged 10b5-1 trading plan.

Summary

• Michael Cannon-Brookes, CEO and Co-Founder of Atlassian, executed multiple sales of Class A common stock on December 2, 2024.
• The sales were conducted under a Rule 10b5-1 trading plan adopted on February 8, 2024.
• A total of 7,948 shares were sold across four transactions at varying weighted-average prices.
• The shares were sold at weighted average prices of $266.9252, $266.0498, $265.2787 and $263.52.
• The shares sold were indirectly held by CBC Co Pty Limited as trustee for the Cannon-Brookes Head Trust.
• Following these transactions, Mr. Cannon-Brookes still indirectly holds 158,960 shares through the trust.

Sentiment

Score: 6

Explanation: The document reflects a routine transaction under a pre-arranged trading plan. While the sale of shares by a CEO could be seen as negative, the context of a 10b5-1 plan mitigates this concern. The sentiment is neutral to slightly positive as it is expected.

Risks

• The sale of shares by a high-profile executive could potentially be interpreted negatively by the market, although it was conducted under a pre-arranged trading plan.

Industry Context

Sales by executives under 10b5-1 plans are common and are generally not seen as a negative signal if the plan was established well in advance. This is a routine disclosure of insider trading activity.

Comparison to Industry Standards

• Many tech company executives use 10b5-1 trading plans to manage their stock sales, so this activity is not unusual.
• The sale prices are within the typical trading range for Atlassian stock, suggesting no unusual market activity.

Stakeholder Impact

• The stock sale may have a minor impact on shareholder sentiment, but the pre-planned nature of the transaction should minimize any negative reaction.

Key Dates

Keywords

Atlassian, Michael Cannon-Brookes, stock sale, insider trading, Rule 10b5-1, Class A Common Stock, SEC Form 4