GitLab (NASDAQ:GTLB) Downgraded to "Neutral" Rating by Bank of America

Key Points

• Bank of America downgraded GitLab from "Buy" to "Neutral" and cut its price target to $27 (from $58), implying about a 21.9% upside from the prior close.
• Multiple other firms also trimmed ratings and targets, leaving a MarketBeat consensus of "Hold" with an average price target of $37.35.
• GitLab beat the quarter (EPS $0.30 vs $0.23; revenue $260.4M, +23.2% YoY) but remains unprofitable with negative margins, and insiders sold roughly 1.33M shares (~$30.3M) over the past three months.

GitLab (NASDAQ:GTLB - Get Free Report) was downgraded by analysts at Bank of America from a "buy" rating to a "neutral" rating in a research report issued to clients and investors on Wednesday, Marketbeat reports. They presently have a $27.00 price target on the stock, down from their prior price target of $58.00. Bank of America's price target suggests a potential upside of 21.90% from the stock's previous close.

Several other analysts also recently issued reports on GTLB. Canaccord Genuity Group dropped their price target on GitLab from $70.00 to $40.00 and set a "buy" rating on the stock in a research note on Wednesday, March 4th. Truist Financial lowered their price target on shares of GitLab from $35.00 to $25.00 and set a "hold" rating on the stock in a research note on Wednesday, March 4th. Wells Fargo & Company lowered their price target on shares of GitLab from $45.00 to $26.00 and set an "equal weight" rating on the stock in a research note on Wednesday, March 4th. Morgan Stanley lowered their price target on shares of GitLab from $38.00 to $29.00 and set a "cautious" rating on the stock in a research note on Monday, March 9th. Finally, Guggenheim lowered shares of GitLab from a "buy" rating to a "neutral" rating in a research note on Thursday, April 9th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seventeen have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, GitLab currently has an average rating of "Hold" and a consensus price target of $37.35.

GitLab Price Performance

GTLB opened at $22.15 on Wednesday. The business's 50-day moving average price is $23.76 and its two-hundred day moving average price is $34.62. GitLab has a 1 year low of $18.73 and a 1 year high of $54.08. The company has a market capitalization of $3.77 billion, a price-to-earnings ratio of -63.29 and a beta of 0.85.

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

Insider Transactions at GitLab

In other news, Director Matthew Jacobson sold 700,109 shares of GitLab stock in a transaction dated Thursday, March 19th. The shares were sold at an average price of $22.95, for a total value of $16,067,501.55. Following the completion of the transaction, the director owned 325 shares of the company's stock, valued at $7,458.75. This trade represents a 99.95% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Sytse Sijbrandij sold 116,200 shares of GitLab stock in a transaction dated 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. In the last three months, insiders sold 1,330,408 shares of company stock valued at $30,309,342. Insiders own 21.36% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of GTLB. Allworth Financial LP grew its position in shares of GitLab by 124.1% in 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 during the period. Quarry LP bought a new position in shares of GitLab in the 3rd quarter valued at about $31,000. Lodestone Wealth Management LLC bought a new position in shares of GitLab in the 4th quarter valued at about $36,000. Farther Finance Advisors LLC grew its position in shares of GitLab by 284.3% in the 3rd quarter. Farther Finance Advisors LLC now owns 907 shares of the company's stock valued at $41,000 after acquiring an additional 671 shares during the period. Finally, Global Retirement Partners LLC grew its position in shares of GitLab by 84.1% in the 3rd quarter. Global Retirement Partners LLC now owns 974 shares of the company's stock valued at $44,000 after acquiring an additional 445 shares during the period. Institutional investors own 95.04% of the company's stock.

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.

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