Form 4: Atlassian Director Scott Farquhar Sells Shares Under 10b5-1 Trading Plan

Atlassian director Scott Farquhar sold Class A Common Stock on January 28, 2025, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• On January 28, 2025, Scott Farquhar, a director and 10% owner of Atlassian Corp, sold multiple blocks of Class A Common Stock.
• The sales were executed under a Rule 10b5-1 trading plan adopted on February 14, 2024.
• The transactions involved multiple trades at varying prices throughout the day, with weighted-average prices reported for each block of shares sold.
• The shares are held by Skip Enterprises Pty Limited as trustee for the Farquhar Family Trust.
• Following these transactions, Farquhar indirectly beneficially owns 341,764 shares of Class A Common Stock through the trust.

Sentiment

Score: 5

Explanation: The document is neutral as it reports routine stock sales under a pre-arranged trading plan. It doesn't inherently indicate positive or negative sentiment about the company's future.

Industry Context

Sales by insiders are a common occurrence, and pre-planned sales under 10b5-1 plans are generally viewed as less indicative of the insider's view of the company's prospects than discretionary sales. It is important to consider the size and frequency of these sales in relation to the insider's overall holdings.

Comparison to Industry Standards

• Comparing Farquhar's transactions to other tech company directors' sales, the volume is relatively small compared to founders or CEOs of companies like Meta (Mark Zuckerberg) or Amazon (Jeff Bezos) who often have much larger holdings and trading volumes.
• The use of a 10b5-1 plan is standard practice to avoid accusations of insider trading, similar to executives at companies like Microsoft or Apple.
• The reported weighted average prices are within the typical daily trading range for Atlassian (TEAM), suggesting no unusual market impact from these sales.

Stakeholder Impact

• The stock sales could have a minor impact on shareholders due to the increased supply of shares in the market, but the effect is likely minimal given the relatively small volume and the pre-planned nature of the transactions.
• The sales do not directly impact employees, customers, suppliers, or creditors.

Key Dates