GitLab (NASDAQ:GTLB) Trading Down 1.8% on Insider Selling

Key Points

• GitLab's stock price fell by 1.8%, closing at $47.31 after trading as low as $47.62, with a significantly reduced trading volume.
• Analysts from Wells Fargo, Piper Sandler, and BTIG Research downgraded their price targets for GitLab, consolidating a consensus rating of "Moderate Buy" with an average price target of $58.39.
• Insiders have recently sold a significant amount of stock, with one director selling 129,400 shares valued at over $5 million, marking a trend of insider divestment in the company.

GitLab Inc. (NASDAQ:GTLB - Get Free Report) shares traded down 1.8% during trading on Wednesday after an insider sold shares in the company. The stock traded as low as $47.62 and last traded at $47.31. 1,185,357 shares changed hands during trading, a decline of 68% from the average session volume of 3,747,272 shares. The stock had previously closed at $48.17.

Specifically, Director Matthew Jacobson sold 143,205 shares of the business's stock in a transaction that occurred on Monday, September 8th. The stock was sold at an average price of $46.80, for a total transaction of $6,701,994.00. Following the transaction, the director owned 498,098 shares of the company's stock, valued at approximately $23,310,986.40. The trade was a 22.33% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on GTLB shares. UBS Group cut their target price on GitLab from $73.00 to $60.00 and set a "buy" rating on the stock in a research report on Thursday, September 4th. Cantor Fitzgerald restated an "overweight" rating and set a $60.00 price objective on shares of GitLab in a report on Thursday, September 4th. Morgan Stanley boosted their price objective on GitLab from $53.00 to $56.00 and gave the company an "overweight" rating in a report on Wednesday, June 11th. Needham & Company LLC restated a "buy" rating and set a $55.00 price objective on shares of GitLab in a report on Thursday, September 4th. Finally, Guggenheim started coverage on GitLab in a report on Thursday. They set a "buy" rating and a $70.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $58.88.

GitLab Trading Up 1.1%

The stock has a market capitalization of $8.31 billion, a P/E ratio of -1,257.50 and a beta of 0.75. The company has a 50-day moving average price of $45.13 and a 200 day moving average price of $46.80.

GitLab (NASDAQ:GTLB - Get Free Report) last released its quarterly earnings results on Tuesday, June 10th. The company reported $0.17 EPS for the quarter, topping the consensus estimate of $0.15 by $0.02. The firm had revenue of $214.51 million during the quarter, compared to analyst estimates of $213.21 million. GitLab had a negative return on equity of 2.71% and a negative net margin of 0.55%.The business's revenue for the quarter was up 26.8% compared to the same quarter last year. During the same period in the previous year, the company posted $0.03 EPS. As a group, research analysts expect that GitLab Inc. will post -0.31 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Cullen Frost Bankers Inc. raised its position in shares of GitLab by 174.9% in the 1st quarter. Cullen Frost Bankers Inc. now owns 525 shares of the company's stock worth $25,000 after acquiring an additional 334 shares in the last quarter. Cloud Capital Management LLC acquired a new position in GitLab during the 1st quarter valued at about $29,000. Twin Tree Management LP acquired a new position in GitLab during the 1st quarter valued at about $29,000. Harbour Investments Inc. increased its position in 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 in the last quarter. Finally, GAMMA Investing LLC increased its position in GitLab by 114.2% during the 1st quarter. GAMMA Investing LLC now owns 919 shares of the company's stock valued at $43,000 after buying an additional 490 shares in the last quarter. 95.04% of the stock is owned by institutional investors.

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.