GitLab (NASDAQ:GTLB) Receives Hold Rating from TD Cowen

Key Points

• TD Cowen reiterated its Hold rating on GitLab and kept a $29 price target, which implies modest downside from the prior close.
• GitLab shares were down about 4.9% in Wednesday trading, even after the company reported a Q1 earnings beat with EPS of $0.23 vs. $0.20 expected and revenue of $264.16 million vs. $254.23 million expected.
• Analysts remain mixed overall: several firms raised price targets after earnings, but the stock’s broader consensus is still Hold, with a $38.31 average price target.

GitLab (NASDAQ:GTLB - Get Free Report)'s stock had its "hold" rating reiterated by stock analysts at TD Cowen in a note issued to investors on Wednesday,Benzinga reports. They presently have a $29.00 price target on the stock. TD Cowen's price target suggests a potential downside of 4.13% from the stock's previous close.

A number of other research analysts have also recently commented on the company. DA Davidson upped their price target on GitLab from $24.00 to $35.00 and gave the stock a "neutral" rating in a research note on Wednesday. UBS Group downgraded GitLab from a "buy" rating to a "neutral" rating and cut their price objective for the company from $44.00 to $24.00 in a report on Thursday, April 16th. Bank of America reissued a "neutral" rating on shares of GitLab in a research note on Wednesday. Needham & Company LLC lifted their target price on GitLab from $32.00 to $38.00 and gave the company a "buy" rating in a research report on Wednesday. Finally, BTIG Research raised their price objective on shares of GitLab from $30.00 to $36.00 and gave the company a "buy" rating in a research note on Wednesday. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eighteen have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $38.31.

GitLab Stock Down 4.9%

GTLB stock traded down $1.57 during mid-day trading on Wednesday, hitting $30.25. 7,708,176 shares of the company were exchanged, compared to its average volume of 6,289,605. GitLab has a 12-month low of $18.73 and a 12-month high of $52.38. The firm has a market capitalization of $5.15 billion, a P/E ratio of -86.43 and a beta of 0.96. The business has a fifty day simple moving average of $23.30 and a 200-day simple moving average of $30.43.

GitLab (NASDAQ:GTLB - Get Free Report) last released its quarterly earnings results on Tuesday, June 2nd. The company reported $0.23 earnings per share (EPS) for the quarter, beating 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 net margin of 5.86% and a negative return on equity of 1.73%. The business's revenue was up 23.2% on a year-over-year basis. During the same period in the previous year, the firm earned $0.17 EPS. GitLab has set its Q2 2027 guidance at 0.170-0.180 EPS. Research analysts predict that GitLab will post -0.33 EPS for the current year.

Insider Transactions at GitLab

In other news, Director Matthew Jacobson sold 459,799 shares of the company's 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, 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 value of $2,887,570.00. Following the completion of the transaction, the director owned 15,018,251 shares in the company, valued at approximately $373,203,537.35. The trade was a 0.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,392,308 shares of company stock valued at $31,654,249 over the last ninety days. 10.64% of the stock is owned by company insiders.

Institutional Trading of GitLab

Institutional investors have recently modified their holdings of the stock. 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 buying an additional 309 shares during the last quarter. Quarry LP purchased a new position in shares of GitLab during the third quarter worth about $31,000. Fifth Third Bancorp increased its position in shares of 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. Lodestone Wealth Management LLC purchased a new stake in shares of GitLab in the 4th quarter valued at about $36,000. Finally, Larson Financial Group LLC lifted its holdings in shares of 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 purchasing an additional 481 shares during the last quarter. Hedge funds and other institutional investors own 95.04% of the company's stock.

GitLab News Summary

Here are the key news stories impacting GitLab this week:

• Positive Sentiment: GitLab beat first-quarter expectations, reporting EPS of $0.23 versus $0.20 expected and revenue of $264.16 million versus $254.23 million expected, with revenue up 23.2% year over year. The company also raised its Q2 FY2027 EPS guidance above consensus, which suggests improving profitability momentum. GitLab Reports First Quarter Fiscal Year 2027 Financial Results
• Positive Sentiment: Several analysts lifted price targets after the earnings beat, including Needham to $38, BTIG to $36, and DA Davidson to $35, reinforcing a more constructive outlook on GTLB. Analyst target updates
• Positive Sentiment: Investor interest also appears elevated ahead of and after earnings, with heavy call-option activity and reports of stock strength tied to the results and GitLab’s AI-focused platform updates.
• Neutral Sentiment: GitLab is reframing the business around AI/“agentic” DevSecOps, including traction for GitLab Duo Agent Platform and an AWS collaboration, which may support the long-term story but is still early in execution. GitLab Inc. (GTLB) Q1 2027 Earnings Call Transcript
• Negative Sentiment: The company announced a 14% global workforce reduction and plans to exit 22 countries, showing that management is still taking significant restructuring actions to improve efficiency, which can raise near-term uncertainty. GitLab announces 14% reduction in global workforce; expects to exit 22 countries

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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