GitLab (NASDAQ:GTLB) Shares Gap Up - Here's What Happened

Key Points

• GitLab's stock price opened at $45.85, up from a previous close of $43.77, with a trading volume of over 1.1 million shares.
• Analysts have adjusted GitLab's price targets, with ratings that include a "buy" from Needham & Company with a lowered target of $55.00, and an overall average price target of $62.83 reflecting a "Moderate Buy" rating.
• GitLab reported quarterly earnings of $0.17 per share, exceeding estimates, with revenue growth of 26.8% year-over-year, and set FY 2026 guidance of $0.740-0.750 EPS.

GitLab Inc. (NASDAQ:GTLB - Get Free Report)'s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $43.77, but opened at $45.85. GitLab shares last traded at $45.83, with a volume of 1,137,717 shares traded.

Analyst Ratings Changes

GTLB has been the subject of a number of research analyst reports. Needham & Company LLC dropped their price target on shares of GitLab from $85.00 to $55.00 and set a "buy" rating for the company in a research note on Wednesday, June 11th. Wells Fargo & Company reduced their price objective on shares of GitLab from $65.00 to $60.00 and set an "overweight" rating for the company in a report on Wednesday, June 11th. Scotiabank cut their price objective on GitLab from $80.00 to $67.00 and set a "sector outperform" rating on the stock in a report on Friday, June 6th. DA Davidson started coverage on GitLab in a report on Friday, August 22nd. They issued a "neutral" rating and a $50.00 target price on the stock. Finally, Morgan Stanley upped their target price on GitLab from $53.00 to $56.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 11th. Twenty investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, GitLab has an average rating of "Moderate Buy" and an average price target of $62.83.

GitLab Price Performance

The company has a market cap of $7.61 billion, a price-to-earnings ratio of 460.57 and a beta of 0.73. The stock has a 50-day moving average price of $44.07 and a 200 day moving average price of $48.45.

GitLab (NASDAQ:GTLB - Get Free Report) last posted its quarterly earnings results on Tuesday, June 10th. The company reported $0.17 earnings per share for the quarter, beating analysts' consensus estimates of $0.15 by $0.02. The firm had revenue of $214.51 million during the quarter, compared to the consensus estimate of $213.21 million. GitLab had a negative return on equity of 4.07% and a net margin of 2.17%.The business's revenue was up 26.8% compared to the same quarter last year. During the same period last year, the company earned $0.03 earnings per share. GitLab has set its FY 2026 guidance at 0.740-0.750 EPS. Q2 2026 guidance at 0.160-0.17 EPS. Sell-side analysts expect that GitLab Inc. will post -0.31 EPS for the current fiscal year.

Insider Transactions at GitLab

In related news, Director Sytse Sijbrandij sold 108,600 shares of the stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $45.16, for a total transaction of $4,904,376.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Matthew Jacobson sold 129,400 shares of GitLab stock in a transaction dated Wednesday, June 25th. The stock was sold at an average price of $42.32, for a total value of $5,476,208.00. Following the sale, the director directly 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 disclosure for this sale can be found here. Insiders sold a total of 464,950 shares of company stock valued at $20,025,356 over the last ninety days. 21.36% of the stock is currently owned by insiders.

Institutional Trading of GitLab

A number of large investors have recently modified their holdings of the company. Eminence Capital LP grew its holdings in shares of GitLab by 148.9% during the second quarter. Eminence Capital LP now owns 6,218,607 shares of the company's stock valued at $280,521,000 after buying an additional 3,720,406 shares during the last quarter. Atreides Management LP lifted its position in shares of GitLab by 867.3% during the 2nd quarter. Atreides Management LP now owns 3,938,198 shares of the company's stock worth $177,652,000 after purchasing an additional 3,531,070 shares during the last quarter. Champlain Investment Partners LLC raised its holdings in shares of GitLab by 251.3% in the second quarter. Champlain Investment Partners LLC now owns 4,512,197 shares of the company's stock valued at $203,545,000 after buying an additional 3,227,717 shares during the last quarter. 1832 Asset Management L.P. increased its stake in shares of GitLab by 2,456.8% during the first quarter. 1832 Asset Management L.P. now owns 2,295,000 shares of the company's stock worth $107,865,000 after acquiring an additional 2,205,238 shares during the period. Finally, Norges Bank acquired a new position in GitLab during the second quarter worth about $93,489,000. Hedge funds and other institutional investors own 95.04% of the company's stock.

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.

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