GitLab (NASDAQ:GTLB) Stock Price Expected to Rise, Mizuho Analyst Says

Key Points

• Mizuho raised its GitLab price target from $47 to $51 but maintained a neutral rating, implying about 7.8% upside from the share price at the time. Analysts overall held a consensus “Hold” rating and a $52.50 target.
• GitLab’s latest quarterly results beat expectations: adjusted earnings were $0.24 per share versus $0.18 expected, while revenue of $286.25 million topped forecasts and grew 21.3% year over year.
• Shares opened at $47.32 on Thursday, below their 50-day moving average of $51.03; the stock’s reported 52-week range was $18.73 to $58.01.

GitLab (NASDAQ:GTLB - Get Free Report) had its price objective raised by stock analysts at Mizuho from $47.00 to $51.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. Mizuho's price target indicates a potential upside of 7.78% from the stock's current price.

Several other research analysts have also recently commented on the company. Truist Financial reissued a "hold" rating and set a $48.00 target price (up from $40.00) on shares of GitLab in a research note on Wednesday, September 2nd. Weiss Ratings cut GitLab from a "sell (d)" rating to a "sell (e+)" rating in a research note on Wednesday, September 2nd. Morgan Stanley lifted their price objective on GitLab from $30.00 to $57.00 and gave the company an "equal weight" rating in a research note on Wednesday, September 2nd. Needham & Company LLC raised their target price on shares of GitLab from $38.00 to $65.00 and gave the company a "buy" rating in a report on Wednesday, September 2nd. Finally, Cantor Fitzgerald lifted their price objective on shares of GitLab from $35.00 to $50.00 and gave the stock a "neutral" rating in a research report on Monday, August 31st. Seven investment analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $52.50.

GitLab Price Performance

Shares of NASDAQ:GTLB opened at $47.32 on Thursday. The firm has a market capitalization of $7.88 billion, a PE ratio of -147.87 and a beta of 0.96. GitLab has a 1 year low of $18.73 and a 1 year high of $58.01. The firm's 50-day moving average is $51.03 and its two-hundred day moving average is $34.74.

GitLab (NASDAQ:GTLB - Get Free Report) last announced its quarterly earnings data on Tuesday, September 1st. The company reported $0.24 earnings per share for the quarter, beating analysts' consensus estimates of $0.18 by $0.06. GitLab had a negative net margin of 4.99% and a negative return on equity of 1.28%. The firm had revenue of $286.25 million during the quarter, compared to analysts' expectations of $273.13 million. During the same quarter in the previous year, the business posted $0.24 earnings per share. The business's quarterly revenue was up 21.3% compared to the same quarter last year. GitLab has set its FY 2027 guidance at 0.850-0.870 EPS and its Q3 2027 guidance at 0.190-0.200 EPS. Analysts expect that GitLab will post -0.29 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Sytse Sijbrandij sold 116,200 shares of the stock in a transaction on Monday, October 19th. The shares were sold at an average price of $53.27, for a total value of $6,189,974.00. Following the transaction, the director directly owned 12,669,651 shares of the company's stock, valued at $674,912,308.77. This trade represents a 0.91% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Sivaprasad Padisetty sold 51,915 shares of GitLab stock in a transaction on Monday, September 28th. The stock was sold at an average price of $45.78, for a total transaction of $2,376,668.70. Following the sale, the chief technology officer owned 377,211 shares in the company, valued at $17,268,719.58. This represents a 12.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 2,284,315 shares of company stock worth $109,656,918. 10.64% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On GitLab

Hedge funds have recently made changes to their positions in the company. Atreides Management LP purchased a new stake in shares of GitLab in the 2nd quarter valued at about $102,983,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in GitLab by 363.4% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,987,553 shares of the company's stock worth $60,680,000 after buying an additional 1,558,625 shares during the last quarter. Light Street Capital Management LLC grew its stake in GitLab by 66.2% during the 2nd quarter. Light Street Capital Management LLC now owns 1,945,000 shares of the company's stock worth $59,381,000 after buying an additional 775,000 shares during the last quarter. Renaissance Technologies LLC acquired a new position in GitLab during the first quarter worth approximately $16,074,000. Finally, Bank of America Corp DE increased its position in GitLab by 55.3% during the first quarter. Bank of America Corp DE now owns 1,955,648 shares of the company's stock worth $42,320,000 after buying an additional 696,096 shares during the period. Hedge funds and other institutional investors own 95.04% of the company's stock.

About GitLab

GitLab Inc. develops a software platform that helps organizations manage the software development lifecycle. Its tools support planning, source-code management, collaboration, continuous integration and delivery, security testing, and application monitoring. The GitLab platform brings these capabilities together in a single application, available as a cloud-hosted service or for customers to install and manage in their own environments. The company serves organizations in a range of industries and geographies, from individual developers to large enterprises.

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