GitLab (NASDAQ:GTLB) Shares Gap Down on Analyst Downgrade

Shares of GitLab Inc. (NASDAQ:GTLB) gapped down before the market opened on Tuesday after Mizuho lowered their price target on the stock from $30.00 to $26.00. The stock had previously closed at $25.64, but opened at $22.57. Mizuho currently has a neutral rating on the stock. GitLab shares last traded at $23.1730, with a volume of 2,761,897 shares trading hands.

GTLB has been the subject of several other reports. Sanford C. Bernstein decreased their price target on shares of GitLab from $70.00 to $60.00 and set an “outperform” rating for the company in a research report on Wednesday, March 4th. Needham & Company LLC reiterated a “buy” rating and set a $32.00 price objective on shares of GitLab in a report on Monday, April 13th. Wells Fargo & Company dropped their target price on GitLab from $45.00 to $26.00 and set an “equal weight” rating on the stock in a research note on Wednesday, March 4th. Royal Bank Of Canada cut GitLab from an “outperform” rating to a “sector perform” rating and decreased their price target for the company from $33.00 to $25.00 in a research note on Monday, April 20th. Finally, Morgan Stanley dropped their price target on GitLab from $38.00 to $29.00 and set a “cautious” rating on the stock in a research note on Monday, March 9th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eighteen have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $37.19.

Insider Buying and Selling

In related news, Director Matthew Jacobson sold 700,109 shares of the firm’s stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $22.95, for a total transaction of $16,067,501.55. Following the sale, the director owned 325 shares in the company, valued at approximately $7,458.75. This trade represents a 99.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Sytse Sijbrandij sold 116,200 shares of the firm’s stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $20.77, for a total value of $2,413,474.00. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,330,408 shares of company stock valued at $30,309,342 over the last three months. 10.64% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On GitLab

Several hedge funds and other institutional investors have recently modified their holdings of the business. Allworth Financial LP grew its stake in GitLab by 124.1% during the 3rd quarter. Allworth Financial LP now owns 558 shares of the company’s stock valued at $25,000 after acquiring an additional 309 shares in the last quarter. Quarry LP purchased a new stake in shares of GitLab in the third quarter valued at approximately $31,000. Fifth Third Bancorp increased its holdings in shares of GitLab by 220.6% in the first quarter. Fifth Third Bancorp now owns 1,603 shares of the company’s stock valued at $35,000 after purchasing an additional 1,103 shares during the last quarter. Lodestone Wealth Management LLC purchased a new position in GitLab during the fourth quarter worth approximately $36,000. Finally, Farther Finance Advisors LLC lifted its position in GitLab by 284.3% during the third quarter. Farther Finance Advisors LLC now owns 907 shares of the company’s stock worth $41,000 after buying an additional 671 shares in the last quarter. 95.04% of the stock is owned by hedge funds and other institutional investors.

GitLab Price Performance

The stock has a 50 day simple moving average of $22.67 and a two-hundred day simple moving average of $32.68. The company has a market cap of $4.02 billion, a price-to-earnings ratio of -67.57 and a beta of 0.82.

GitLab (NASDAQ:GTLB) last released its quarterly earnings results on Tuesday, March 3rd. The company reported $0.30 EPS for the quarter, beating the consensus estimate of $0.23 by $0.07. GitLab had a negative net margin of 5.86% and a negative return on equity of 1.73%. The firm had revenue of $260.40 million for the quarter, compared to analyst estimates of $252.31 million. During the same quarter in the previous year, the company earned $0.33 EPS. The business’s revenue for the quarter was up 23.2% compared to the same quarter last year. As a group, research analysts forecast that GitLab Inc. will post -0.28 EPS for the current year.

GitLab Company Profile

GitLab Inc (NASDAQ: GTLB) is a leading provider of a unified DevOps platform designed to streamline the software development lifecycle. Founded in 2011 by Dmitriy Zaporozhets and Sid Sijbrandij, the company initially gained recognition for its open-source Git repository manager. Over time, GitLab expanded its offerings to encompass planning, source code management, continuous integration/continuous deployment (CI/CD), security testing, and monitoring in a single application. This integrated approach enables development teams to collaborate efficiently, reduce toolchain complexity, and accelerate release cycles.

The GitLab platform is offered through both cloud-hosted and self-managed deployment models, catering to organizations of all sizes.