5 Best High Risk High Reward Stocks to Buy Now

4. Atlassian Corporation Plc (NASDAQ:TEAM)

Price-to-Sales Ratio as of August 1: 20.31

Number of Hedge Fund Holders: 65

Atlassian Corporation Plc (NASDAQ:TEAM) develops enterprise software products for software developers, project managers, and other software development teams. The company’s flagship products are Jira and Trello, both of which allow businesses to streamline their operations. Atlassian Corporation Plc (NASDAQ:TEAM) has made a market for its products, but the stock is vulnerable to macro headwinds such as a slowing economy and a declining job market. However, with the increasing digitization of businesses, software products like Jira, Trello, Confluence, and Bitbucket are expected to drive the company’s long-term growth.

On July 13, Piper Sandler analyst James Fish slashed his price target on Atlassian Corporation Plc (NASDAQ:TEAM) to $249 from $371 and referred to macro concerns for his lowered estimates. However, Fish remains Overweight on the company.

At the close of Q1 2022, 65 hedge funds held stakes in Atlassian Corporation Plc (NASDAQ:TEAM). The total value of these stakes amounted to $4.93 billion. This is compared to 69 hedge funds in the previous quarter with stakes worth $5.78 billion.

As of March 31, Renaissance Technologies owns more than 2.64 million shares of Atlassian Corporation Plc (NASDAQ:TEAM) and is the largest shareholder in the company. The fund’s stakes are worth $776.86 million and the investment covers 0.91% of Jim Simons’ 13F portfolio.

ClearBridge Investments, an investment management firm, mentioned Atlassian Corporation Plc (NASDAQ:TEAM) in its “International Growth ADR Strategy” first-quarter 2022 investor letter. Here is what the firm had to say:

“The structural bucket has the shortest investment horizon across the spectrum of growth companies we target in the Strategy. We closely monitor the macro impacts and turnaround progress of these companies and will be disciplined sellers when the thesis for a holding plays out. We also trimmed back workflow software maker Atlassian (NASDAQ:TEAM) after a strong runup in its shares in 2021. Most of our reductions in emerging growth have involved IT or related companies where innovation is a key to their business model. That said, we remain positive on the IT sector and have largely maintained holdings in our highest-conviction ideas.”