GitLab (NASDAQ:GTLB) Rating Increased to Strong-Buy at Zacks Research

Key Points

• GitLab has been upgraded to a "strong-buy" rating by Zacks Research, reflecting improved analyst sentiment regarding the company's stock.
• Despite the upgrade, GitLab's stock has seen a slight decline of 1.0%, opening at $46.86, while analysts set a consensus price target of $58.83.
• The company's recent earnings report revealed a quarterly revenue of $236 million, surpassing estimates, but it reported a loss per share of ($0.03), missing expectations.

GitLab (NASDAQ:GTLB - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report issued on Wednesday,Zacks.com reports.

Other research analysts also recently issued research reports about the company. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of GitLab in a research note on Wednesday. FBN Securities raised GitLab to a "strong-buy" rating in a research note on Thursday, September 4th. Raymond James Financial decreased their price objective on GitLab from $60.00 to $55.00 and set an "outperform" rating on the stock in a research note on Thursday, September 4th. Macquarie reissued an "outperform" rating and set a $75.00 target price on shares of GitLab in a research note on Thursday, September 4th. Finally, Barclays decreased their target price on GitLab from $47.00 to $44.00 and set an "equal weight" rating on the stock in a research note on Friday, September 5th. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $58.83.

GitLab Stock Down 1.0%

NASDAQ GTLB opened at $46.86 on Wednesday. The stock's 50-day moving average price is $46.02 and its 200-day moving average price is $45.88. GitLab has a 52 week low of $37.90 and a 52 week high of $74.18. The company has a market capitalization of $7.81 billion, a P/E ratio of -1,171.50 and a beta of 0.73.

GitLab (NASDAQ:GTLB - Get Free Report) last posted its quarterly earnings data on Wednesday, September 3rd. The company reported ($0.03) EPS for the quarter, missing the consensus estimate of $0.16 by ($0.19). GitLab had a negative return on equity of 2.71% and a negative net margin of 0.55%.The company had revenue of $236.00 million during the quarter, compared to the consensus estimate of $227.20 million. During the same period last year, the business earned $0.15 EPS. The firm's quarterly revenue was up 29.2% compared to the same quarter last year. GitLab has set its FY 2026 guidance at 0.820-0.830 EPS. Q3 2026 guidance at 0.190-0.200 EPS. Research analysts anticipate that GitLab will post -0.31 EPS for the current year.

Insider Transactions at GitLab

In other GitLab news, CAO Simon Mundy sold 5,191 shares of the firm's stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $43.99, for a total transaction of $228,352.09. Following the completion of the transaction, the chief accounting officer owned 53,507 shares in the company, valued at $2,353,772.93. This trade represents a 8.84% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Karen Blasing sold 3,250 shares of the firm's stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $50.08, for a total value of $162,760.00. Following the transaction, the director owned 100,639 shares of the company's stock, valued at $5,040,001.12. This represents a 3.13% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 1,224,362 shares of company stock worth $59,723,796. 16.37% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On GitLab

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Patriot Financial Group Insurance Agency LLC purchased a new position in shares of GitLab in the 3rd quarter worth approximately $202,000. Accel Wealth Management purchased a new position in shares of GitLab in the 3rd quarter worth approximately $201,000. Northside Capital Management LLC boosted its holdings in shares of GitLab by 17.7% in the 3rd quarter. Northside Capital Management LLC now owns 6,864 shares of the company's stock worth $309,000 after purchasing an additional 1,030 shares during the period. Oak Thistle LLC purchased a new position in shares of GitLab in the 3rd quarter worth approximately $465,000. Finally, Corient Private Wealth LLC purchased a new position in shares of GitLab in the 2nd quarter worth approximately $301,000. Hedge funds and other institutional investors own 95.04% of the company's stock.

About GitLab

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.

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