GitLab (NASDAQ:GTLB) Stock Price Down 9.4% Following Analyst Downgrade

Key Points

• GitLab's stock price dropped 9.4% after DA Davidson downgraded its price target from $50.00 to $45.00, reflecting a neutral rating on the stock.
• The stock traded as low as $42.20 during the day, with a significantly higher trading volume of 7.77 million shares, compared to the average of approximately 3.66 million shares.
• Despite the downgrade, GitLab has a consensus rating of "Moderate Buy" from 19 analysts, with an average price target of $58.87.

GitLab Inc. (NASDAQ:GTLB - Get Free Report) shares were down 9.4% during trading on Thursday after Barclays lowered their price target on the stock from $47.00 to $44.00. Barclays currently has an equal weight rating on the stock. GitLab traded as low as $42.20 and last traded at $42.51. Approximately 7,779,733 shares traded hands during mid-day trading, an increase of 113% from the average daily volume of 3,656,900 shares. The stock had previously closed at $46.91.

Other research analysts have also issued research reports about the company. Macquarie reiterated an "outperform" rating and issued a $75.00 target price on shares of GitLab in a research report on Thursday. JPMorgan Chase & Co. decreased their target price on GitLab from $58.00 to $52.00 and set a "neutral" rating for the company in a research report on Wednesday, June 11th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $60.00 target price on shares of GitLab in a research report on Thursday. Raymond James Financial decreased their target price on GitLab from $60.00 to $55.00 and set an "outperform" rating for the company in a research report on Thursday. Finally, Canaccord Genuity Group cut their price target on GitLab from $76.00 to $70.00 and set a "buy" rating on the stock in a report on Thursday. Nineteen investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $58.39.

Insider Buying and Selling

In other GitLab news, Director Karen Blasing sold 3,250 shares of the business's stock in a transaction on Monday, August 18th. The stock was sold at an average price of $45.00, for a total transaction of $146,250.00. Following the completion of the transaction, the director owned 103,889 shares in the company, valued at approximately $4,675,005. The trade was a 3.03% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Sytse Sijbrandij sold 108,600 shares of the business's stock in a transaction on Monday, August 18th. The stock was sold at an average price of $45.16, for a total value of $4,904,376.00. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 464,950 shares of company stock valued at $20,025,356. Insiders own 16.37% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. GAMMA Investing LLC boosted its position in GitLab by 9,968.3% during the 1st quarter. GAMMA Investing LLC now owns 43,193 shares of the company's stock worth $2,030,000 after acquiring an additional 42,764 shares during the period. Park Avenue Securities LLC boosted its position in GitLab by 5.3% during the 1st quarter. Park Avenue Securities LLC now owns 7,601 shares of the company's stock worth $357,000 after acquiring an additional 381 shares during the period. Wealthcare Advisory Partners LLC boosted its position in GitLab by 19.3% during the 1st quarter. Wealthcare Advisory Partners LLC now owns 6,578 shares of the company's stock worth $309,000 after acquiring an additional 1,065 shares during the period. Cambridge Investment Research Advisors Inc. acquired a new position in GitLab during the 1st quarter worth $200,000. Finally, Cetera Investment Advisers boosted its position in GitLab by 43.4% during the 1st quarter. Cetera Investment Advisers now owns 55,636 shares of the company's stock worth $2,615,000 after acquiring an additional 16,849 shares during the period. Institutional investors and hedge funds own 95.04% of the company's stock.

GitLab Trading Up 5.2%

The stock has a 50-day simple moving average of $44.79 and a 200-day simple moving average of $47.35. The company has a market cap of $7.55 billion, a price-to-earnings ratio of -1,143.25 and a beta of 0.75.

GitLab (NASDAQ:GTLB - Get Free Report) last posted its quarterly earnings data on Tuesday, June 10th. The company reported $0.17 EPS for the quarter, topping analysts' consensus estimates of $0.15 by $0.02. GitLab had a negative return on equity of 2.80% and a negative net margin of 0.55%.The company had revenue of $214.51 million for the quarter, compared to the consensus estimate of $213.21 million. During the same quarter in the previous year, the business earned $0.03 EPS. The company's quarterly revenue was up 26.8% compared to the same quarter last year. 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 expect that GitLab Inc. will post -0.31 EPS for the current fiscal year.

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.