Madison Asset Management LLC Acquires New Holdings in GitLab Inc. $GTLB

Key Points

• Madison Asset Management opened a new position in GitLab during the fourth quarter, buying 60,354 shares worth about $2.27 million.
• GitLab has seen significant institutional ownership and mixed analyst sentiment, with several firms cutting ratings and price targets; the stock’s consensus rating is currently Hold with an average target of $37.08.
• The company is also under pressure from insider selling and restructuring concerns, even as it recently beat earnings and revenue estimates and reiterated its fiscal 2027 guidance.

Madison Asset Management LLC acquired a new stake in shares of GitLab Inc. (NASDAQ:GTLB - Free Report) during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 60,354 shares of the company's stock, valued at approximately $2,265,000.

Other institutional investors and hedge funds have also bought and sold shares of the company. Vanguard Group Inc. boosted its position in shares of GitLab by 9.2% in the 3rd quarter. Vanguard Group Inc. now owns 15,281,775 shares of the company's stock worth $688,902,000 after purchasing an additional 1,285,881 shares in the last quarter. Eminence Capital LP boosted its position in shares of GitLab by 15.9% in the 3rd quarter. Eminence Capital LP now owns 7,207,729 shares of the company's stock worth $324,924,000 after purchasing an additional 989,122 shares in the last quarter. Atreides Management LP boosted its position in shares of GitLab by 38.9% in the 3rd quarter. Atreides Management LP now owns 5,470,305 shares of the company's stock worth $246,601,000 after purchasing an additional 1,532,107 shares in the last quarter. Champlain Investment Partners LLC boosted its position in shares of GitLab by 4.2% in the 3rd quarter. Champlain Investment Partners LLC now owns 4,703,281 shares of the company's stock worth $212,024,000 after purchasing an additional 191,084 shares in the last quarter. Finally, Franklin Resources Inc. boosted its position in shares of GitLab by 35.6% in the 3rd quarter. Franklin Resources Inc. now owns 3,533,659 shares of the company's stock worth $159,297,000 after purchasing an additional 926,824 shares in the last quarter. 95.04% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on GTLB shares. Piper Sandler cut GitLab from an "overweight" rating to a "neutral" rating and lowered their price objective for the stock from $55.00 to $28.00 in a research report on Wednesday, March 4th. Raymond James Financial cut GitLab from an "outperform" rating to a "market perform" rating in a research report on Tuesday. UBS Group cut GitLab from a "buy" rating to a "neutral" rating and lowered their price objective for the stock from $44.00 to $24.00 in a research report on Thursday, April 16th. William Blair reissued an "underperform" rating on shares of GitLab in a research report on Monday, March 23rd. Finally, Bank of America cut GitLab from a "buy" rating to a "neutral" rating and lowered their price objective for the stock from $58.00 to $27.00 in a research report on Wednesday, April 22nd. 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 given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $37.08.

GitLab News Roundup

Here are the key news stories impacting GitLab this week:

• Positive Sentiment: GitLab reiterated its fiscal 2027 guidance, suggesting management still expects the restructuring to support its longer-term financial plan rather than derail it.
• Neutral Sentiment: Mizuho raised its price target on GitLab to $26 from $30 while keeping a neutral rating, indicating analysts still see some upside from current levels but are not turning more bullish.
• Neutral Sentiment: Cantor Fitzgerald also lowered its price target to $27 from $30 and maintained a neutral view, reflecting a more cautious stance but not an outright bearish call.
• Neutral Sentiment: Broader market news also showed futures weakening after hotter-than-expected April inflation data, which may be adding extra pressure on growth stocks like GitLab.
• Negative Sentiment: The restructuring news itself is the main driver of the selloff: GitLab is cutting staff, reducing its country footprint, flattening management, and reorganizing R&D, which raises concerns about execution and internal disruption in the near term.
• Negative Sentiment: Analyst commentary and market reaction suggest investors are worried the layoffs could slow progress on product development and customer execution just as GitLab is trying to invest in AI initiatives.

Insiders Place Their Bets

In related news, Director Matthew Jacobson sold 700,109 shares of the business'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 completion of the transaction, the director directly owned 325 shares in the company, valued at $7,458.75. The trade was a 99.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Sytse Sijbrandij sold 116,200 shares of the business's stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $20.77, for a total transaction 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 have sold 1,330,408 shares of company stock valued at $30,309,342 over the last 90 days. 10.64% of the stock is currently owned by insiders.

GitLab Price Performance

NASDAQ GTLB opened at $22.05 on Thursday. The company has a market capitalization of $3.75 billion, a PE ratio of -63.00 and a beta of 0.82. The company has a fifty day moving average of $22.52 and a 200 day moving average of $32.32. GitLab Inc. has a 1 year low of $18.73 and a 1 year high of $54.08.

GitLab (NASDAQ:GTLB - Get Free Report) last posted its earnings results on Tuesday, March 3rd. The company reported $0.30 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.23 by $0.07. The company had revenue of $260.40 million during the quarter, compared to the consensus estimate of $252.31 million. GitLab had a negative net margin of 5.86% and a negative return on equity of 1.73%. The firm's quarterly revenue was up 23.2% on a year-over-year basis. During the same period in the previous year, the firm posted $0.33 earnings per share. Research analysts expect that GitLab Inc. will post -0.28 earnings per share for the current year.

GitLab 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.

Want to see what other hedge funds are holding GTLB? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for GitLab Inc. (NASDAQ:GTLB - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.