GitLab (NASDAQ:GTLB) Receives Buy Rating from Needham & Company LLC

Key Points

• GitLab's stock was restated with a buy rating by Needham & Company LLC, with a price target of $55.00, indicating a potential upside of 17.25% from its current price.
• The company reported a net margin of 2.17% and quarterly revenue of $214.51 million, showing a 26.8% year-over-year growth.
• Insiders have recently sold a significant amount of stock, with 464,950 shares valued at $20,025,356 sold in the last ninety days, indicating potential concerns about future performance.

GitLab (NASDAQ:GTLB - Get Free Report)'s stock had its "buy" rating restated by Needham & Company LLC in a research note issued to investors on Thursday,Benzinga reports. They currently have a $55.00 target price on the stock. Needham & Company LLC's price objective points to a potential upside of 20.27% from the stock's current price.

A number of other research analysts also recently commented on the stock. BTIG Research dropped their target price on shares of GitLab from $86.00 to $67.00 and set a "buy" rating on the stock in a research report on Wednesday, June 11th. Scotiabank dropped their target price on shares of GitLab from $80.00 to $67.00 and set a "sector outperform" rating on the stock in a research report on Friday, June 6th. Wells Fargo & Company dropped their target price on shares of GitLab from $65.00 to $60.00 and set an "overweight" rating on the stock in a research report on Wednesday, June 11th. Morgan Stanley increased their target price on shares of GitLab from $53.00 to $56.00 and gave the company an "overweight" rating in a research report on Wednesday, June 11th. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $62.00 target price on shares of GitLab in a research report on Wednesday, June 25th. Nineteen analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, GitLab currently has an average rating of "Moderate Buy" and a consensus target price of $58.39.

GitLab Stock Up 5.2%

NASDAQ GTLB traded up $2.27 on Thursday, hitting $45.73. 7,975,383 shares of the stock were exchanged, compared to its average volume of 5,623,291. GitLab has a fifty-two week low of $37.90 and a fifty-two week high of $74.18. The company has a market cap of $7.55 billion, a PE ratio of -1,143.25 and a beta of 0.75. The company has a 50-day moving average price of $44.79 and a 200-day moving average price of $47.19.

GitLab (NASDAQ:GTLB - Get Free Report) last posted its quarterly earnings results on Tuesday, June 10th. The company reported $0.17 EPS for the quarter, topping the consensus estimate of $0.15 by $0.02. GitLab had a negative net margin of 0.55% and a negative return on equity of 2.80%. The company had revenue of $214.51 million during the quarter, compared to analysts' expectations of $213.21 million. During the same quarter in the previous year, the business posted $0.03 EPS. The firm's revenue was up 26.8% on a year-over-year basis. GitLab has set its FY 2026 guidance at 0.740-0.750 EPS. Q2 2026 guidance at 0.160-0.17 EPS. As a group, equities research analysts predict that GitLab will post -0.31 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Matthew Jacobson sold 129,400 shares of the stock in a transaction on Wednesday, June 25th. The shares were sold at an average price of $42.32, for a total transaction of $5,476,208.00. Following the completion of the sale, the director owned 551,997 shares in the company, valued at $23,360,513.04. This represents a 18.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Karen Blasing sold 3,250 shares of the stock in a transaction on Monday, August 18th. The stock was sold at an average price of $45.00, for a total transaction of $146,250.00. Following the sale, the director owned 103,889 shares of the company's stock, valued at approximately $4,675,005. This represents a 3.03% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 464,950 shares of company stock worth $20,025,356 in the last 90 days. Company insiders own 16.37% of the company's stock.

Institutional Trading of GitLab

Large investors have recently bought and sold shares of the business. Eminence Capital LP raised its position in GitLab by 148.9% during the 2nd quarter. Eminence Capital LP now owns 6,218,607 shares of the company's stock worth $280,521,000 after buying an additional 3,720,406 shares during the last quarter. Atreides Management LP lifted its stake in shares of GitLab by 867.3% in the 2nd quarter. Atreides Management LP now owns 3,938,198 shares of the company's stock worth $177,652,000 after acquiring an additional 3,531,070 shares during the period. Champlain Investment Partners LLC lifted its stake in shares of GitLab by 251.3% in the 2nd quarter. Champlain Investment Partners LLC now owns 4,512,197 shares of the company's stock worth $203,545,000 after acquiring an additional 3,227,717 shares during the period. 1832 Asset Management L.P. lifted its stake in shares of GitLab by 2,456.8% in the 1st quarter. 1832 Asset Management L.P. now owns 2,295,000 shares of the company's stock worth $107,865,000 after acquiring an additional 2,205,238 shares during the period. Finally, Norges Bank acquired a new stake in shares of GitLab in the 2nd quarter worth $93,489,000. Institutional investors and hedge funds own 95.04% of the company's stock.

GitLab Company Profile

GitLab Inc, through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. It offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle.