GitLab (NASDAQ:GTLB) Stock Price Down 2.4% - What's Next?

Key Points

• GitLab's stock price fell by 2.4%, closing at $46.55, with trading volume down 42% from average levels.
• The company's latest earnings report showed a 26.8% increase in revenue year-over-year, with earnings per share of $0.17, surpassing analyst expectations.
• Analysts have issued mixed ratings, with a consensus recommendation of "Moderate Buy" and a price target averaging $62.83, despite recent price target reductions from various firms.

GitLab Inc. (NASDAQ:GTLB - Get Free Report)'s stock price dropped 2.4% during mid-day trading on Wednesday . The company traded as low as $46.67 and last traded at $46.55. Approximately 2,073,964 shares changed hands during mid-day trading, a decline of 42% from the average daily volume of 3,561,909 shares. The stock had previously closed at $47.69.

Analyst Ratings Changes

GTLB has been the topic of a number of research analyst reports. Piper Sandler reissued an "overweight" rating and issued a $85.00 price target on shares of GitLab in a research note on Wednesday, June 11th. Barclays decreased their price target on GitLab from $58.00 to $47.00 and set an "equal weight" rating on the stock in a research note on Wednesday, June 11th. JPMorgan Chase & Co. decreased their price target on GitLab from $58.00 to $52.00 and set a "neutral" rating on the stock in a research note on Wednesday, June 11th. DA Davidson upgraded GitLab to a "hold" rating in a report on Monday, August 25th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and set a $62.00 target price on shares of GitLab in a report on Wednesday, June 25th. Twenty analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, GitLab has a consensus rating of "Moderate Buy" and a consensus price target of $62.83.

GitLab Trading Down 2.1%

The firm has a 50-day moving average of $44.71 and a 200 day moving average of $47.70. The stock has a market capitalization of $7.72 billion, a price-to-earnings ratio of 467.11 and a beta of 0.75.

GitLab (NASDAQ:GTLB - Get Free Report) last announced its earnings results on Tuesday, June 10th. The company reported $0.17 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.15 by $0.02. GitLab had a negative return on equity of 4.07% and a net margin of 2.17%.The company had revenue of $214.51 million for the quarter, compared to analyst estimates of $213.21 million. During the same period in the prior year, the company posted $0.03 EPS. GitLab's quarterly revenue was up 26.8% on a year-over-year basis. 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, research analysts forecast that GitLab Inc. will post -0.31 EPS for the current year.

Insider Buying and Selling at GitLab

In other news, Director Matthew Jacobson sold 129,400 shares of the business's stock in a transaction that occurred on 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 completion of the sale, the director directly owned 551,997 shares in the company, valued at approximately $23,360,513.04. The trade was 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 business's stock in a transaction that occurred 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 completion of the sale, the director owned 103,889 shares of the company's stock, valued at $4,675,005. This trade represents a 3.03% decrease in their ownership of the stock. 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 in the last three months. Corporate insiders own 21.36% of the company's stock.

Institutional Investors Weigh In On GitLab

Institutional investors have recently made changes to their positions in the company. Cullen Frost Bankers Inc. increased its holdings in shares of GitLab by 174.9% in 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 last quarter. CoreCap Advisors LLC grew its stake in GitLab by 327.5% during the 4th quarter. CoreCap Advisors LLC now owns 590 shares of the company's stock worth $33,000 after buying an additional 452 shares during the last quarter. Twin Tree Management LP bought a new position in GitLab during the 1st quarter worth $29,000. Cloud Capital Management LLC bought a new position in GitLab during the 1st quarter worth $29,000. Finally, Harbour Investments Inc. grew its stake in GitLab by 447.6% during the 1st quarter. Harbour Investments Inc. now owns 898 shares of the company's stock worth $42,000 after buying an additional 734 shares during the last quarter. 95.04% of the stock is currently 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.

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