GitLab (NASDAQ:GTLB) Stock Price Down 6.9% - Here's What Happened

Key Points

• GitLab shares fell about 6.9% to $21.56 on Wednesday, trading below both the 50‑day ($26.28) and 200‑day ($36.45) moving averages on slightly below‑average volume.
• The company beat quarterly expectations — $0.30 EPS vs. $0.23 and $260.4M revenue vs. $252.3M (revenue +23.2% YoY) — but remains unprofitable (net margin -5.86%), and analysts have trimmed targets leaving a consensus Hold rating with an average target of $39.62.
• Insiders have sold heavily recently (1,268,508 shares worth about $29.8M, including large director sales), although insiders still own 16.37% of the company.

GitLab Inc. (NASDAQ:GTLB - Get Free Report) traded down 6.9% during trading on Wednesday . The company traded as low as $21.48 and last traded at $21.5620. 5,515,357 shares changed hands during mid-day trading, a decline of 9% from the average session volume of 6,077,732 shares. The stock had previously closed at $23.15.

Wall Street Analyst Weigh In

Several brokerages have weighed in on GTLB. Sanford C. Bernstein lowered their target price on shares of GitLab from $70.00 to $60.00 and set an "outperform" rating for the company in a research note on Wednesday, March 4th. Mizuho lowered their price objective on shares of GitLab from $37.00 to $30.00 and set a "neutral" rating for the company in a research note on Wednesday, March 4th. Bank of America lowered their price objective on shares of GitLab from $72.00 to $58.00 and set a "buy" rating for the company in a research note on Wednesday, March 4th. Morgan Stanley decreased their price objective on GitLab from $38.00 to $29.00 and set a "cautious" rating for the company in a research note on Monday, March 9th. Finally, KeyCorp downgraded shares of GitLab from an "overweight" rating to a "sector weight" rating in a research note on Tuesday, December 16th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, thirteen have issued a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $39.62.

GitLab Trading Down 6.5%

The firm has a market capitalization of $3.68 billion, a price-to-earnings ratio of -61.79 and a beta of 0.85. The business's fifty day moving average price is $26.28 and its 200 day moving average price is $36.45.

GitLab (NASDAQ:GTLB - Get Free Report) last announced its quarterly earnings data on Tuesday, March 3rd. The company reported $0.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.23 by $0.07. GitLab had a negative net margin of 5.86% and a negative return on equity of 1.73%. The company had revenue of $260.40 million for the quarter, compared to analysts' expectations of $252.31 million. During the same period in the previous year, the company posted $0.33 EPS. GitLab's revenue was up 23.2% compared to the same quarter last year. As a group, sell-side analysts forecast that GitLab Inc. will post -0.31 earnings per share for the current fiscal year.

Insider Transactions at GitLab

In other GitLab news, Director Sytse Sijbrandij sold 54,300 shares of the company's stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $28.41, for a total value of $1,542,663.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Matthew Jacobson sold 700,109 shares of the stock in a transaction dated Thursday, March 19th. The stock was sold at an average price of $22.95, for a total transaction of $16,067,501.55. Following the transaction, the director owned 325 shares in the company, valued at approximately $7,458.75. The trade was a 99.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 1,268,508 shares of company stock worth $29,848,496. 16.37% of the stock is owned by insiders.

Hedge Funds Weigh In On GitLab

Several large investors have recently added to or reduced their stakes in the company. Goldman Sachs Group Inc. raised its stake in shares of GitLab by 1.6% during the first quarter. Goldman Sachs Group Inc. now owns 776,521 shares of the company's stock valued at $36,496,000 after purchasing an additional 12,200 shares in the last quarter. Woodline Partners LP purchased a new stake in shares of GitLab in the first quarter worth approximately $314,000. Russell Investments Group Ltd. lifted its holdings in shares of GitLab by 31.6% during the 2nd quarter. Russell Investments Group Ltd. now owns 7,112 shares of the company's stock valued at $321,000 after buying an additional 1,709 shares during the last quarter. Federated Hermes Inc. lifted its holdings in GitLab by 22.1% in the 2nd quarter. Federated Hermes Inc. now owns 721,714 shares of the company's stock worth $32,557,000 after purchasing an additional 130,687 shares during the last quarter. Finally, California Public Employees Retirement System lifted its holdings in GitLab by 17.0% in the 2nd quarter. California Public Employees Retirement System now owns 167,870 shares of the company's stock worth $7,573,000 after purchasing an additional 24,448 shares during the last quarter. 95.04% of the stock is currently owned by institutional investors.

GitLab Company Profile

GitLab Inc NASDAQ: GTLB is a leading provider of a unified DevOps platform designed to streamline the software development lifecycle. Founded in 2011 by Dmitriy Zaporozhets and Sid Sijbrandij, the company initially gained recognition for its open-source Git repository manager. Over time, GitLab expanded its offerings to encompass planning, source code management, continuous integration/continuous deployment (CI/CD), security testing, and monitoring in a single application. This integrated approach enables development teams to collaborate efficiently, reduce toolchain complexity, and accelerate release cycles.

The GitLab platform is offered through both cloud-hosted and self-managed deployment models, catering to organizations of all sizes.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.