GitLab (NASDAQ:GTLB) Shares Gap Down Following Analyst Downgrade

Key Points

• GitLab Inc. shares experienced a significant drop ahead of trading on Thursday, falling from a previous close of $46.91 to an opening price of $43.55 following a downgrade by DA Davidson, which lowered the price target from $50.00 to $45.00.
• Several brokerages, including JPMorgan Chase and Wells Fargo, have adjusted their price targets for GitLab, reflecting a consensus of a "neutral" rating among multiple analysts despite a majority rating the stock as a "buy."
• GitLab reported a quarterly revenue of $214.51 million and an EPS of $0.17, exceeding analysts' expectations, while its shares faced increased selling pressure from corporate insiders who sold a combined total of approximately $20 million in stock recently.

Shares of GitLab Inc. (NASDAQ:GTLB - Get Free Report) gapped down before the market opened on Thursday after Barclays lowered their price target on the stock from $47.00 to $44.00. The stock had previously closed at $46.91, but opened at $43.55. Barclays currently has an equal weight rating on the stock. GitLab shares last traded at $42.75, with a volume of 5,481,164 shares trading hands.

Other analysts have also issued reports about the stock. Rosenblatt Securities reiterated a "buy" rating and set a $58.00 target price on shares of GitLab in a report on Thursday. KeyCorp reduced their price target on shares of GitLab from $60.00 to $53.00 and set an "overweight" rating for the company in a research report on Thursday. UBS Group decreased their target price on shares of GitLab from $73.00 to $60.00 and set a "buy" rating for the company in a research note on Thursday. Raymond James Financial cut their price objective on shares of GitLab from $60.00 to $55.00 and set an "outperform" rating for the company in a research report on Thursday. Finally, The Goldman Sachs Group reissued a "neutral" rating and set a $50.00 price objective on shares of GitLab in a research report on Tuesday, June 24th. 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, the company has an average rating of "Moderate Buy" and an average price target of $58.39.

Insider Buying and Selling

In other GitLab news, Director Matthew Jacobson sold 129,400 shares of the stock in a transaction on Wednesday, June 25th. The stock was sold at an average price of $42.32, for a total transaction of $5,476,208.00. Following the sale, the director owned 551,997 shares of the company's stock, valued at approximately $23,360,513.04. This trade represents a 18.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Karen Blasing sold 3,250 shares of the stock in a transaction on Monday, August 18th. The shares were sold at an average price of $45.00, for a total value 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 have sold a total of 464,950 shares of company stock valued at $20,025,356 over the last quarter. 16.37% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On GitLab

A number of institutional investors have recently modified their holdings of the stock. Cullen Frost Bankers Inc. grew its position in shares of GitLab by 174.9% during the 1st quarter. Cullen Frost Bankers Inc. now owns 525 shares of the company's stock valued at $25,000 after acquiring an additional 334 shares during the period. Cloud Capital Management LLC acquired a new position in shares of GitLab during the 1st quarter worth approximately $29,000. Twin Tree Management LP acquired a new position in shares of GitLab during the 1st quarter worth approximately $29,000. CoreCap Advisors LLC raised its position in shares of GitLab by 327.5% during the 4th quarter. CoreCap Advisors LLC now owns 590 shares of the company's stock valued at $33,000 after buying an additional 452 shares during the period. Finally, Harbour Investments Inc. raised its position in shares of GitLab by 447.6% during the 1st quarter. Harbour Investments Inc. now owns 898 shares of the company's stock valued at $42,000 after buying an additional 734 shares during the period. Hedge funds and other institutional investors own 95.04% of the company's stock.

GitLab Stock Up 5.2%

The company has a market cap of $7.55 billion, a PE ratio of -1,143.25 and a beta of 0.75. The business has a 50-day simple moving average of $44.79 and a 200-day simple moving average of $47.19.

GitLab (NASDAQ:GTLB - Get Free Report) last issued its earnings results on Tuesday, June 10th. The company reported $0.17 EPS for the quarter, topping analysts' consensus estimates 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 firm had revenue of $214.51 million during the quarter, compared to the consensus estimate of $213.21 million. During the same quarter in the previous year, the firm posted $0.03 earnings per share. The company's revenue was up 26.8% compared to the same quarter last year. 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 Inc. will post -0.31 EPS for the current fiscal year.

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.