GitLab (NASDAQ:GTLB) Stock Price Up 4.9% - Still a Buy?

Key Points

• GitLab's stock price increased by 4.9% to $45.61, reflecting a rise from the previous close of $43.46, despite a 21% decline in trading volume compared to its daily average.
• Multiple analysts have updated their ratings on GitLab, with Cantor Fitzgerald setting a price target of $60.00 and Piper Sandler lowering theirs to $70.00, while the stock has an overall average rating of "Moderate Buy" with a target of $58.39.
• Recently, several institutional investors have increased their stakes in GitLab, highlighting strong institutional interest, with 95.04% of the stock owned by hedge funds and institutional investors.

GitLab Inc. (NASDAQ:GTLB - Get Free Report)'s stock price rose 4.9% during trading on Friday . The company traded as high as $45.84 and last traded at $45.61. Approximately 2,935,906 shares traded hands during trading, a decline of 21% from the average daily volume of 3,706,200 shares. The stock had previously closed at $43.46.

Analyst Upgrades and Downgrades

GTLB has been the subject of a number of analyst reports. Cantor Fitzgerald reissued an "overweight" rating and set a $60.00 target price on shares of GitLab in a research report on Thursday. Piper Sandler lowered their price target on shares of GitLab from $85.00 to $70.00 and set an "overweight" rating on the stock in a research report on Thursday. Royal Bank Of Canada reissued an "outperform" rating and issued a $62.00 price target on shares of GitLab in a research note on Wednesday, June 25th. DA Davidson lowered their target price on shares of GitLab from $50.00 to $45.00 and set a "neutral" rating for the company in a report on Thursday. Finally, UBS Group cut their price objective on shares of GitLab from $73.00 to $60.00 and set a "buy" rating for the company in a research report on Thursday. Nineteen analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $58.39.

GitLab Trading Up 5.2%

The business has a fifty day moving average price of $44.78 and a two-hundred day moving average price of $47.53. 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 announced its quarterly earnings data 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. The company had revenue of $214.51 million during the quarter, compared to analysts' expectations of $213.21 million. GitLab had a negative net margin of 0.55% and a negative return on equity of 2.80%. The business's revenue was up 26.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.03 EPS. GitLab has set its FY 2026 guidance at 0.740-0.750 EPS. Q2 2026 guidance at 0.160-0.17 EPS. On average, analysts anticipate that GitLab Inc. will post -0.31 EPS for the current year.

Insider Activity

In other GitLab news, Director Karen Blasing sold 3,250 shares of the firm'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 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. This trade represents a 3.03% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Matthew Jacobson sold 129,400 shares of the firm's stock in a transaction on Wednesday, June 25th. The shares were sold at an average price of $42.32, for a total value of $5,476,208.00. Following the transaction, the director owned 551,997 shares in the company, valued at approximately $23,360,513.04. This trade represents a 18.99% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 464,950 shares of company stock valued at $20,025,356 over the last quarter. 16.37% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of GTLB. Dimensional Fund Advisors LP increased its stake in GitLab by 30.0% in the 4th quarter. Dimensional Fund Advisors LP now owns 85,949 shares of the company's stock worth $4,843,000 after acquiring an additional 19,846 shares during the last quarter. Northern Trust Corp increased its position in GitLab by 20.2% during the 4th quarter. Northern Trust Corp now owns 650,369 shares of the company's stock valued at $36,648,000 after buying an additional 109,182 shares in the last quarter. Comerica Bank increased its holdings in shares of GitLab by 41.8% in the fourth quarter. Comerica Bank now owns 51,980 shares of the company's stock valued at $2,929,000 after purchasing an additional 15,323 shares during the period. Mercer Global Advisors Inc. ADV grew its holdings in GitLab by 89.6% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 7,800 shares of the company's stock worth $440,000 after acquiring an additional 3,686 shares during the period. Finally, Ameriprise Financial Inc. grew its holdings in GitLab by 276.9% in the fourth quarter. Ameriprise Financial Inc. now owns 2,155,016 shares of the company's stock valued at $121,435,000 after purchasing an additional 1,583,221 shares during the period. 95.04% of the stock is owned by hedge funds and other institutional investors.

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.

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