Form 4: Atlassian Co-Founder Sells Shares Under 10b5-1 Plan

Atlassian CEO and Co-Founder Michael Cannon-Brookes sold 7,665 shares of Class A Common Stock on December 26, 2025, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Michael Cannon-Brookes, Atlassian's CEO, Co-Founder, Director, and 10% owner, reported the sale of 7,665 shares of Class A Common Stock.
• The sales occurred on December 26, 2025, across three separate transactions.
• The shares were sold at weighted-average prices of $163.325, $161.9588, and $162.7397.
• These transactions were executed pursuant to a Rule 10b5-1 trading plan adopted on February 20, 2025.
• Following these direct sales, Michael Cannon-Brookes' beneficial ownership consists of 22,995 shares held indirectly through CBC Co Pty Limited as trustee for the Cannon-Brookes Head Trust.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While insider selling can be perceived negatively, the execution under a Rule 10b5-1 plan mitigates concerns, suggesting a pre-planned financial management decision rather than a reaction to adverse company news.

Positives

• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a planned divestment rather than a reaction to new, negative information.

Negatives

• A significant insider, who is also CEO and Co-Founder, sold a notable number of shares.

Risks

• Potential for negative market perception due to insider selling, even if pre-planned.

Future Outlook

NA

Industry Context

This filing reflects a routine insider transaction for a high-growth technology company. Such sales by founders/executives are common for diversification or liquidity purposes, especially when executed under a Rule 10b5-1 plan, and do not necessarily indicate a change in the company's fundamental prospects or industry position.

Related Party Transactions

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

Stakeholder Impact

• Shareholders may interpret the insider selling as a negative signal, potentially leading to short-term price volatility, although the 10b5-1 plan mitigates this concern.
• Employees, customers, suppliers, and creditors are unlikely to be directly impacted by this personal financial transaction of an executive.

Key Dates

Recommendation

The insider selling by Michael Cannon-Brookes, while notable, was executed under a pre-arranged Rule 10b5-1 trading plan. This suggests a planned personal financial management decision rather than a reaction to new, adverse company information. Therefore, this specific filing alone does not warrant a change in investment thesis for Atlassian, and a 'hold' recommendation is appropriate for existing investors.

Keywords

Atlassian, TEAM, Michael Cannon-Brookes, Insider Selling, Form 4, 10b5-1 Plan, Stock Sale, CEO, Co-Founder, Beneficial Ownership