GitLab (NASDAQ:GTLB) Given New $35.00 Price Target at DA Davidson

Key Points

• DA Davidson raised its price target on GitLab from $24 to $35 while keeping a neutral rating, implying about 10% upside from the prior close.
• GitLab’s latest quarterly results beat expectations, with EPS of $0.23 versus $0.20 expected and revenue of $264.2 million versus $254.2 million expected. Revenue also grew 23.2% year over year.
• Despite the strong report, the stock was down 5.8% as investors weighed mixed analyst views, including several buy and hold ratings, along with ongoing insider selling activity.

GitLab (NASDAQ:GTLB - Get Free Report) had its price target hoisted by equities research analysts at DA Davidson from $24.00 to $35.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a "neutral" rating on the stock. DA Davidson's target price would indicate a potential upside of 9.99% from the stock's previous close.

Several other research firms also recently issued reports on GTLB. Royal Bank Of Canada reissued a "sector perform" rating and issued a $29.00 target price on shares of GitLab in a research report on Wednesday. William Blair reissued an "underperform" rating on shares of GitLab in a research report on Monday, March 23rd. Rosenblatt Securities reissued a "buy" rating and issued a $43.00 target price on shares of GitLab in a research report on Monday. Canaccord Genuity Group cut their target price on GitLab from $70.00 to $40.00 and set a "buy" rating on the stock in a research report on Wednesday, March 4th. Finally, Truist Financial cut their target price on GitLab from $35.00 to $25.00 and set a "hold" rating on the stock in a research report on Wednesday, March 4th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, eighteen have assigned a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $38.12.

GitLab Trading Down 5.8%

Shares of GTLB stock opened at $31.82 on Wednesday. The business's fifty day simple moving average is $23.30 and its 200-day simple moving average is $30.43. The company has a market cap of $5.41 billion, a PE ratio of -90.91 and a beta of 0.96. GitLab has a 12-month low of $18.73 and a 12-month high of $52.38.

GitLab (NASDAQ:GTLB - Get Free Report) last issued its quarterly earnings results on Tuesday, June 2nd. The company reported $0.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.20 by $0.03. The business had revenue of $264.16 million for the quarter, compared to the consensus estimate of $254.23 million. GitLab had a negative return on equity of 1.73% and a negative net margin of 5.86%.The business's quarterly revenue was up 23.2% on a year-over-year basis. During the same period in the prior year, the firm posted $0.17 earnings per share. GitLab has set its Q2 2027 guidance at 0.170-0.180 EPS. On average, equities analysts forecast that GitLab will post -0.33 earnings per share for the current year.

Insider Activity

In other news, Director Sytse Sijbrandij sold 116,200 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $24.85, for a total transaction of $2,887,570.00. Following the sale, the director directly owned 15,018,251 shares of the company's stock, valued at $373,203,537.35. This represents a 0.77% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew Jacobson sold 459,799 shares of the stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $22.37, for a total transaction of $10,285,703.63. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 1,392,308 shares of company stock worth $31,654,249. Corporate insiders own 10.64% of the company's stock.

Institutional Investors Weigh In On GitLab

Several hedge funds have recently modified their holdings of the company. Allworth Financial LP lifted its stake in 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 buying an additional 309 shares in the last quarter. Quarry LP purchased a new position in GitLab in the 3rd quarter valued at about $31,000. Lodestone Wealth Management LLC purchased a new position in GitLab in the 4th quarter valued at about $36,000. Larson Financial Group LLC lifted its stake in GitLab by 92.7% in the 3rd quarter. Larson Financial Group LLC now owns 1,000 shares of the company's stock valued at $45,000 after buying an additional 481 shares in the last quarter. Finally, Advisory Services Network LLC purchased a new position in GitLab in the 3rd quarter valued at about $48,000. 95.04% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about GitLab

Here are the key news stories impacting GitLab this week:

• Positive Sentiment: GitLab beat first-quarter fiscal 2027 expectations, reporting $0.23 in adjusted EPS versus $0.20 expected and revenue of $264.2 million versus $254.2 million expected, with sales up 23.2% year over year. GitLab earnings report and transcript
• Positive Sentiment: Management issued second-quarter fiscal 2027 guidance above Wall Street expectations, with EPS guidance of $0.17-$0.18 versus $0.13 consensus and revenue guidance of $272 million-$274 million around consensus. GitLab Q1 fiscal 2027 financial results
• Positive Sentiment: Rosenblatt Securities reiterated a Buy rating and set a $43 price target, reinforcing a bullish Wall Street view after the report. Rosenblatt Securities rating update
• Neutral Sentiment: Investors also appeared to position ahead of earnings, with unusually heavy call-option activity suggesting speculation around the results rather than a fundamental change. Pre-earnings positioning
• Negative Sentiment: GitLab said it will cut about 14% of its workforce, or roughly 350 employees, and exit 22 countries as part of an AI-focused restructuring, which may signal near-term execution and cost pressures even as it supports longer-term efficiency. WSJ workforce reduction article

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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