Form 4: Atlassian Director Scott Farquhar Converts Class B Shares for Planned Sale Under 10b5-1 Plan

Atlassian Director and 10% owner Scott Farquhar converted 114,975 shares of Class B Common Stock into Class A Common Stock on June 6, 2025, in preparation for sales under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Scott Farquhar, a Director and 10% owner of Atlassian Corp (TEAM), converted 114,975 shares of Class B Common Stock into Class A Common Stock.
• The transaction occurred on June 6, 2025.
• This conversion is in connection with planned sales to be effected pursuant to a Rule 10b5-1 trading plan, which was adopted by the Reporting Person on February 12, 2025.
• The shares are held indirectly by Farquhar Investment Partnership No. 2.
• Each share of Class B Common Stock is convertible at any time into Class A Common Stock on a one-to-one basis at the Reporting Person's election and has no expiration date.
• Following this reported transaction, Farquhar Investment Partnership No. 2 beneficially owns 48,515,493 shares of Class B Common Stock.

Sentiment

Score: 5

Explanation: Neutral. While it indicates future sales by an insider, it's done via a pre-planned 10b5-1, which is a common and often non-eventful financial planning tool. It's not a direct reflection of company performance or a sudden negative event.

Positives

• The conversion facilitates an orderly sale process through a pre-arranged Rule 10b5-1 trading plan, indicating a structured and compliant approach to insider transactions.

Negatives

• The conversion is a precursor to sales by a significant insider (Director and 10% owner), which could be perceived negatively by the market as it represents a reduction in direct equity exposure.

Risks

• Potential market perception issues if the sales are interpreted as a lack of confidence by a key insider, rather than for personal financial planning or diversification.

Future Outlook

The document indicates future sales of Class A Common Stock by a key insider, Scott Farquhar, under a pre-arranged Rule 10b5-1 trading plan. This suggests a planned reduction in his direct equity exposure to Atlassian.

Industry Context

This filing is a routine insider transaction report. While it doesn't directly reflect broader industry trends, insider selling can sometimes be a data point for investors assessing management's confidence in future prospects, though often it's for personal financial planning unrelated to company performance.

Related Party Transactions

• The shares are held by Farquhar Investment Partnership No. 2, indicating an indirect beneficial ownership structure.

Stakeholder Impact

• Shareholders: Potential for minor negative sentiment if sales are perceived as a lack of confidence, though often understood as personal financial planning. The increased float of Class A shares from conversion could slightly impact liquidity.

Next Steps

• Execution of sales of Class A Common Stock by Scott Farquhar pursuant to the Rule 10b5-1 trading plan.

Key Dates

Recommendation

Keywords

Atlassian, TEAM, Scott Farquhar, SEC Form 4, Insider Trading, Stock Conversion, Class A Common Stock, Class B Common Stock, Rule 10b5-1, Beneficial Ownership