GitLab (NASDAQ:GTLB) Rating Lowered to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded GitLab from “strong buy” to “hold,” bringing the broader analyst consensus to “hold” with an average price target of $36.58.
• GitLab reported quarterly EPS of $0.23 versus the $0.20 consensus estimate, while revenue reached $264.16 million, up 23.2% year over year and above expectations.
• GTLB opened at $36.48, with a market capitalization of approximately $6.16 billion; insiders own 10.64% of shares and institutional investors hold 95.04%.

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

Other equities research analysts have also recently issued research reports about the stock. UBS Group lifted their price objective on shares of GitLab from $32.00 to $35.00 and gave the company a "neutral" rating in a research report on Friday, July 10th. Mizuho lifted their price objective on shares of GitLab from $26.00 to $28.00 and gave the stock a "neutral" rating in a research note on Wednesday, June 3rd. Guggenheim restated a "neutral" rating on shares of GitLab in a research report on Wednesday, June 3rd. Sanford C. Bernstein reaffirmed an "outperform" rating on shares of GitLab in a report on Monday, June 29th. Finally, BTIG Research reissued a "buy" rating and set a $36.00 price objective on shares of GitLab in a research note on Thursday, June 11th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, eighteen have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, GitLab presently has a consensus rating of "Hold" and an average price target of $36.58.

GitLab Price Performance

GTLB stock opened at $36.48 on Monday. GitLab has a 1-year low of $18.73 and a 1-year high of $52.38. The business has a fifty day moving average price of $30.93 and a 200-day moving average price of $27.76. The stock has a market capitalization of $6.16 billion, a P/E ratio of -228.00 and a beta of 0.94.

GitLab (NASDAQ:GTLB - Get Free Report) last issued its quarterly earnings results on Tuesday, June 2nd. The company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.03. GitLab had a negative net margin of 2.49% and a positive return on equity of 0.31%. The business had revenue of $264.16 million for the quarter, compared to analysts' expectations of $254.23 million. During the same quarter last year, the company posted $0.17 EPS. The company's revenue was up 23.2% compared to the same quarter last year. GitLab has set its Q2 2027 guidance at 0.170-0.180 EPS. As a group, analysts anticipate that GitLab will post -0.18 earnings per share for the current year.

Insider Transactions at GitLab

In other GitLab news, Director Sytse Sijbrandij sold 116,200 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $28.44, for a total value of $3,304,728.00. Following the transaction, the director directly owned 14,902,051 shares in the company, valued at $423,814,330.44. This represents a 0.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 10.64% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On GitLab

Several hedge funds have recently modified their holdings of GTLB. Allworth Financial LP lifted its stake in shares of GitLab by 124.1% during the third quarter. Allworth Financial LP now owns 558 shares of the company's stock worth $25,000 after buying an additional 309 shares during the period. Quarry LP purchased a new stake in shares of GitLab in the third quarter worth about $31,000. Fifth Third Bancorp boosted its position in GitLab by 220.6% during the first quarter. Fifth Third Bancorp now owns 1,603 shares of the company's stock worth $35,000 after purchasing an additional 1,103 shares in the last quarter. Larson Financial Group LLC lifted its position in shares of GitLab by 92.7% during 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 shares of GitLab during the 3rd quarter valued at approximately $48,000. Institutional investors and hedge funds 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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