GitLab (NASDAQ:GTLB) Stock Price Down 1.3% - Should You Sell?

Key Points

• GitLab's stock fell by 1.3% during midday trading, with shares last trading at $46.85, down from a previous close of $47.47.
• Multiple analyst ratings for GitLab show a mix of outlooks, with Royal Bank of Canada maintaining an "outperform" rating at a price target of $62, while others lowered their targets significantly.
• Insiders have sold over 1.2 million shares of GitLab stock in the last quarter, contributing to concerns about the company’s outlook despite a high institutional ownership of 95.04%.

Shares of GitLab Inc. (NASDAQ:GTLB - Get Free Report) were down 1.3% during mid-day trading on Monday . The company traded as low as $46.57 and last traded at $46.85. Approximately 3,177,630 shares changed hands during trading, a decline of 17% from the average daily volume of 3,833,319 shares. The stock had previously closed at $47.47.

Analyst Upgrades and Downgrades

Several research analysts have commented on GTLB shares. Royal Bank Of Canada restated an "outperform" rating and set a $62.00 price objective on shares of GitLab in a report on Wednesday, June 25th. DA Davidson reduced their price objective on GitLab from $50.00 to $45.00 and set a "neutral" rating on the stock in a report on Thursday, September 4th. BTIG Research reduced their price objective on GitLab from $67.00 to $57.00 and set a "buy" rating on the stock in a report on Thursday, September 4th. Wells Fargo & Company reduced their price objective on GitLab from $60.00 to $55.00 and set an "overweight" rating on the stock in a report on Thursday, September 4th. Finally, Barclays reduced their price objective on GitLab from $47.00 to $44.00 and set an "equal weight" rating on the stock in a report on Friday, September 5th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, GitLab currently has a consensus rating of "Moderate Buy" and a consensus target price of $58.88.

GitLab Trading Down 1.3%

The stock has a market cap of $7.81 billion, a price-to-earnings ratio of -1,171.25 and a beta of 0.74. The stock has a 50-day moving average price of $46.09 and a two-hundred day moving average price of $46.08.

Insider Transactions at GitLab

In other news, Director Sytse Sijbrandij sold 108,600 shares of the firm's stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $50.14, for a total value of $5,445,204.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Matthew Jacobson sold 63,587 shares of GitLab stock in a transaction dated Tuesday, September 23rd. The stock was sold at an average price of $50.16, for a total value of $3,189,523.92. Following the sale, the director directly owned 820 shares of the company's stock, valued at $41,131.20. This trade represents a 98.73% decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,219,171 shares of company stock valued at $59,495,444 in the last quarter. 21.36% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Corient Private Wealth LLC purchased a new stake in GitLab in the second quarter valued at $301,000. HMI Capital Management L.P. lifted its holdings in shares of GitLab by 32.3% in the 2nd quarter. HMI Capital Management L.P. now owns 5,858,626 shares of the company's stock valued at $264,283,000 after buying an additional 1,430,151 shares during the period. State of Wyoming acquired a new position in shares of GitLab in the 2nd quarter valued at about $840,000. Nomura Holdings Inc. lifted its holdings in shares of GitLab by 327.0% in the 2nd quarter. Nomura Holdings Inc. now owns 18,193 shares of the company's stock valued at $821,000 after buying an additional 13,932 shares during the period. Finally, KP Management LLC lifted its holdings in shares of GitLab by 10.2% in the 2nd quarter. KP Management LLC now owns 16,527 shares of the company's stock valued at $746,000 after buying an additional 1,527 shares during the period. 95.04% of the stock is currently owned by institutional investors and hedge funds.

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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