Form 4: Atlassian Co-Founder Sells $1.2M in Stock

Atlassian Corp CEO and Co-Founder Michael Cannon-Brookes sold 7,665 shares of Class A Common Stock for approximately $1.23 million under a pre-arranged trading plan.

Summary

• Michael Cannon-Brookes, CEO, Co-Founder, Director, and 10% Owner of Atlassian Corp (TEAM), reported the sale of Class A Common Stock.
• A total of 7,665 shares were disposed of on August 12, 2025, through multiple transactions.
• The sales were executed at weighted-average prices ranging from $157.9903 to $163.7017 per share.
• The total approximate value of the shares sold is $1,227,365.74.
• These transactions were conducted pursuant to a Rule 10b5-1 trading plan adopted by Mr. Cannon-Brookes on February 20, 2025.
• Following these transactions, Mr. Cannon-Brookes beneficially owns 260,610 shares of Class A Common Stock indirectly through CBC Co Pty Limited as trustee for the Cannon-Brookes Head Trust.

Sentiment

Score: 5

Explanation: The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, indicating they were scheduled in advance and not a reaction to recent company performance or market conditions. This type of insider transaction is generally considered routine and does not typically signal a change in management's outlook.

Positives

• The transactions were executed under a Rule 10b5-1 trading plan, indicating pre-scheduled sales for diversification or liquidity rather than a reaction to new, non-public information, which enhances transparency and reduces concerns about opportunistic insider selling.

Negatives

• Insider selling, even when pre-planned, can sometimes be perceived negatively by the market, potentially leading to short-term downward pressure on the stock price.

Risks

• While executed under a 10b5-1 plan, significant insider selling, if perceived as a lack of confidence, could negatively impact investor sentiment.

Future Outlook

NA

Industry Context

NA

Comparison to Industry Standards

• NA

Corporate Governance

Related Party Transactions

• Shares are held indirectly by CBC Co Pty Limited as trustee for the Cannon-Brookes Head Trust, indicating a related party holding structure for the beneficial ownership.

Stakeholder Impact

• Shareholders: May view the insider selling with caution, though the 10b5-1 plan mitigates concerns about management's confidence in the company's future.
• Employees: No direct impact indicated by this filing.

Next Steps

• The Reporting Person undertakes to provide full information regarding the number of shares and prices at which the transactions were effected upon request to the SEC staff, the issuer, or a security holder.

Key Dates

Recommendation

The insider sales by Michael Cannon-Brookes were executed under a Rule 10b5-1 trading plan, which signifies pre-scheduled transactions rather than a discretionary sale based on new information. Such routine sales by executives for diversification or liquidity purposes are common and do not inherently suggest a negative outlook on the company's future prospects. Therefore, the filing itself does not provide a basis for a change in investment thesis, warranting a 'hold' recommendation based solely on this information.

Keywords

Atlassian, TEAM, Insider Trading, Stock Sale, Form 4, Michael Cannon-Brookes, 10b5-1 Plan, Corporate Governance