GitLab (NASDAQ:GTLB) Trading 5.1% Higher - Should You Buy?

Key Points

• GitLab's stock increased by 5.1% during trading, reaching a last traded price of $49.52, although the volume was significantly lower than average at 512,591 shares.
• The company reported a quarterly earnings miss with a loss of ($0.03) earnings per share, despite revenue of $236 million, exceeding analyst estimates.
• Equities analysts maintain a consensus rating of "Moderate Buy" for GitLab, with a target price averaging $58.83, though some analysts have recently lowered their price targets.

GitLab Inc. (NASDAQ:GTLB - Get Free Report)'s share price traded up 5.1% during trading on Tuesday . The company traded as high as $48.58 and last traded at $49.52. 512,591 shares changed hands during mid-day trading, a decline of 87% from the average session volume of 3,947,426 shares. The stock had previously closed at $47.10.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the company. Piper Sandler decreased their target price on GitLab from $85.00 to $70.00 and set an "overweight" rating on the stock in a research report on Thursday, September 4th. KeyCorp decreased their target price on GitLab from $60.00 to $53.00 and set an "overweight" rating on the stock in a research report on Thursday, September 4th. Weiss Ratings reissued a "sell (e+)" rating on shares of GitLab in a research report on Wednesday, October 8th. DA Davidson decreased their target price on GitLab from $50.00 to $45.00 and set a "neutral" rating on the stock in a research report on Thursday, September 4th. Finally, Cantor Fitzgerald reissued an "overweight" rating and set a $60.00 target price on shares of GitLab in a research report on Thursday, September 4th. Two analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $58.83.

GitLab Stock Up 6.6%

The business has a fifty day simple moving average of $46.49 and a two-hundred day simple moving average of $45.74. The company has a market capitalization of $8.37 billion, a price-to-earnings ratio of -1,263.75 and a beta of 0.73.

GitLab (NASDAQ:GTLB - Get Free Report) last released its quarterly earnings data on Wednesday, September 3rd. The company reported ($0.03) earnings per share for the quarter, missing analysts' consensus estimates of $0.16 by ($0.19). The company had revenue of $236.00 million for the quarter, compared to analyst estimates of $227.20 million. GitLab had a negative net margin of 0.55% and a negative return on equity of 2.71%. The firm's revenue for the quarter was up 29.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.15 earnings per share. GitLab has set its FY 2026 guidance at 0.820-0.830 EPS. Q3 2026 guidance at 0.190-0.200 EPS. As a group, equities analysts predict that GitLab Inc. will post -0.31 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Sytse Sijbrandij sold 108,600 shares of the business's stock in a transaction that occurred 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 sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Matthew Jacobson sold 396,147 shares of the business's stock in a transaction that occurred on Wednesday, September 17th. The stock was sold at an average price of $50.53, for a total value of $20,017,307.91. Following the completion of the transaction, the director directly owned 73,299 shares in the company, valued at $3,703,798.47. The trade was a 84.39% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,224,362 shares of company stock valued at $59,828,897 over the last quarter. 16.37% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. MetLife Investment Management LLC boosted its holdings in shares of GitLab by 3.2% in the 1st quarter. MetLife Investment Management LLC now owns 7,762 shares of the company's stock worth $365,000 after acquiring an additional 242 shares in the last quarter. Blue Trust Inc. raised its position in GitLab by 3.6% in the 3rd quarter. Blue Trust Inc. now owns 8,770 shares of the company's stock worth $395,000 after purchasing an additional 302 shares during the last quarter. Summit Global Investments raised its position in GitLab by 2.2% in the 2nd quarter. Summit Global Investments now owns 15,193 shares of the company's stock worth $685,000 after purchasing an additional 331 shares during the last quarter. Cullen Frost Bankers Inc. raised its position in 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 purchasing an additional 334 shares during the last quarter. Finally, SBI Securities Co. Ltd. raised its position in GitLab by 12.5% in the 2nd quarter. SBI Securities Co. Ltd. now owns 3,863 shares of the company's stock worth $174,000 after purchasing an additional 429 shares during the last quarter. 95.04% of the stock is owned by institutional investors and hedge funds.

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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