GitLab (NASDAQ:GTLB) Trading Down 3.8% - Should You Sell?

Key Points

• GitLab's stock price dropped by 3.8%, closing at $45.08 after trading as low as $44.56, with a trading volume increase of 3% compared to its average.
• Several brokerage firms have given GitLab an average rating of Moderate Buy, with a target price averaging around $58.88, while Morgan Stanley and Wells Fargo both maintain "overweight" ratings.
• Recent insider transactions show significant selling activity, with two directors selling large amounts of stock, raising concerns as insiders sold a total of over 1.2 million shares valued at nearly $60 million in the last 90 days.

GitLab Inc. (NASDAQ:GTLB - Get Free Report)'s stock price fell 3.8% during mid-day trading on Tuesday . The stock traded as low as $44.56 and last traded at $45.08. 3,961,934 shares were traded during trading, an increase of 3% from the average session volume of 3,834,079 shares. The stock had previously closed at $46.85.

Wall Street Analyst Weigh In

Several brokerages have issued reports on GTLB. Morgan Stanley boosted their target price on GitLab from $53.00 to $56.00 and gave the company an "overweight" rating in a research report on Wednesday, June 11th. Wells Fargo & Company dropped their target price on GitLab from $60.00 to $55.00 and set an "overweight" rating for the company in a research report on Thursday, September 4th. The Goldman Sachs Group restated a "neutral" rating and set a $50.00 target price on shares of GitLab in a research report on Tuesday, June 24th. Guggenheim initiated coverage on GitLab in a research report on Thursday, September 11th. They set a "buy" rating and a $70.00 target price for the company. Finally, FBN Securities raised shares of GitLab to a "strong-buy" rating in a research note on Thursday, September 4th. One analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $58.88.

GitLab Stock Down 3.8%

The company's 50 day moving average price is $46.09 and its two-hundred day moving average price is $46.08. The stock has a market cap of $7.51 billion, a P/E ratio of -1,127.00 and a beta of 0.75.

Insider Buying and Selling

In related news, Director Matthew Jacobson sold 396,147 shares of the company's stock in a transaction 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 transaction, the director directly owned 73,299 shares of the company's stock, valued at $3,703,798.47. This represents a 84.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Sytse Sijbrandij sold 108,600 shares of GitLab stock in a transaction dated Monday, August 18th. The shares were 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. Insiders sold 1,219,171 shares of company stock valued at $59,495,444 over the last 90 days. Corporate insiders own 16.37% of the company's stock.

Hedge Funds Weigh In On GitLab

Institutional investors and hedge funds have recently modified their holdings of the stock. Cullen Frost Bankers Inc. lifted 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 buying an additional 334 shares during the period. Cloud Capital Management LLC acquired a new position in shares of GitLab in the 1st quarter valued at about $29,000. Twin Tree Management LP purchased a new stake in shares of GitLab during the 1st quarter worth about $29,000. Harbour Investments Inc. grew its position in shares of GitLab by 447.6% during the 1st quarter. Harbour Investments Inc. now owns 898 shares of the company's stock valued at $42,000 after acquiring an additional 734 shares during the period. Finally, GAMMA Investing LLC grew its position in shares of GitLab by 114.2% during the 1st quarter. GAMMA Investing LLC now owns 919 shares of the company's stock valued at $43,000 after acquiring an additional 490 shares during the period. Institutional investors and hedge funds own 95.04% of the company's stock.

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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