GitLab Inc. (NASDAQ:GTLB) Stock Now Rated "Hold" by Sell-Side Brokerages

Key Points

• Analyst sentiment is neutral: GitLab has a consensus “Hold” rating from 28 analysts—18 holds, seven buys and three sells—with an average 12-month price target of $52.33.
• Quarterly results beat expectations: GitLab reported adjusted EPS of $0.24 versus $0.18 expected and revenue of $286.25 million, up 21.3% year over year.
• Insiders have been selling shares: Company insiders sold 2.28 million shares worth about $109.7 million over the past 90 days; the reported transactions were made under pre-arranged trading plans.

Shares of GitLab Inc. (NASDAQ:GTLB - Get Free Report) have received a consensus recommendation of "Hold" from the twenty-eight ratings firms that are presently covering the company, Marketbeat Ratings reports. Three investment analysts have rated the stock with a sell recommendation, eighteen have issued a hold recommendation and seven have assigned a buy recommendation to the company. The average 1-year target price among analysts that have issued ratings on the stock in the last year is $52.33.

A number of research analysts have recently commented on GTLB shares. Rosenblatt Securities increased their price objective on GitLab from $43.00 to $55.00 and gave the company a "buy" rating in a report on Wednesday, September 2nd. Sanford C. Bernstein reiterated an "outperform" rating on shares of GitLab in a research note on Wednesday, September 2nd. Bank of America lifted their target price on shares of GitLab from $45.00 to $54.00 and gave the company a "neutral" rating in a research note on Wednesday, September 2nd. Morgan Stanley increased their price objective on shares of GitLab from $30.00 to $57.00 and gave the company an "equal weight" rating in a research report on Wednesday, September 2nd. Finally, Wells Fargo & Company lifted their target price on shares of GitLab from $40.00 to $50.00 and gave the stock an "equal weight" rating in a research note on Wednesday, September 2nd.

Insider Activity

In other GitLab news, CTO Sivaprasad Padisetty sold 51,915 shares of GitLab stock in a transaction that occurred on Monday, September 28th. The shares were sold at an average price of $45.78, for a total value of $2,376,668.70. Following the transaction, the chief technology officer owned 377,211 shares in the company, valued at approximately $17,268,719.58. The trade was a 12.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sytse Sijbrandij sold 116,200 shares of the stock in a transaction that occurred on Monday, October 19th. The stock was sold at an average price of $53.27, for a total value of $6,189,974.00. Following the sale, the director directly owned 12,669,651 shares of the company's stock, valued at approximately $674,912,308.77. The trade was a 0.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 2,284,315 shares of company stock valued at $109,656,918. Company insiders own 10.64% of the company's stock.

Institutional Trading of GitLab

Several institutional investors and hedge funds have recently made changes to their positions in the business. Diversified Trust Co increased its stake in shares of GitLab by 22.0% during the third quarter. Diversified Trust Co now owns 18,723 shares of the company's stock worth $885,000 after buying an additional 3,378 shares during the period. Russell Investments Group Ltd. boosted its holdings in GitLab by 45.1% during the third quarter. Russell Investments Group Ltd. now owns 116,060 shares of the company's stock worth $5,484,000 after purchasing an additional 36,075 shares during the last quarter. R Squared Ltd bought a new position in shares of GitLab in the 3rd quarter valued at $536,000. Fifth Third Bancorp raised its holdings in shares of GitLab by 1,160.5% in the 3rd quarter. Fifth Third Bancorp now owns 43,741 shares of the company's stock worth $2,067,000 after acquiring an additional 40,271 shares during the last quarter. Finally, Maryland State Retirement & Pension System increased its stake in GitLab by 44.2% in the 3rd quarter. Maryland State Retirement & Pension System now owns 9,662 shares of the company's stock worth $457,000 after acquiring an additional 2,962 shares during the last quarter. 95.04% of the stock is currently owned by institutional investors.

GitLab Price Performance

Shares of NASDAQ:GTLB opened at $48.09 on Friday. GitLab has a one year low of $18.73 and a one year high of $58.01. The stock has a market capitalization of $8.01 billion, a PE ratio of -150.28 and a beta of 0.96. The company's 50-day moving average price is $50.94 and its two-hundred day moving average price is $34.57.

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

GitLab Company Profile

GitLab Inc develops an integrated DevSecOps platform that helps organizations plan, create, secure, deploy and monitor software. Its platform brings source code management, project planning, continuous integration and continuous delivery, application security, compliance, and observability capabilities into a single application.

GitLab's products are designed to support software development teams throughout the application lifecycle. Key offerings include repositories and collaboration tools, automated testing and deployment, vulnerability management, security testing, infrastructure and portfolio management, and artificial intelligence features intended to assist developers and other technology professionals.

Founded in 2011 by Dmitriy Zaporozhets and Sid Sijbrandij, GitLab operates as an all-remote company and serves organizations globally across a range of industries and sizes.

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