Mizuho Issues Pessimistic Forecast for GitLab (NASDAQ:GTLB) Stock Price

Key Points

• Mizuho cut its price target on GitLab from $30 to $26 while keeping a neutral rating, implying only modest upside from the prior close.
• Analyst sentiment remains mixed overall: GitLab’s consensus rating is Hold, with a consensus target price of $37.19, even as several firms recently lowered their targets.
• GitLab’s latest earnings beat estimates, with EPS of $0.30 versus $0.23 expected and revenue up 23.2% year over year, but the company still reported negative margins and analysts expect a loss for the full year.

GitLab (NASDAQ:GTLB - Get Free Report) had its target price decreased by research analysts at Mizuho from $30.00 to $26.00 in a research report issued on Tuesday,Benzinga reports. The firm currently has a "neutral" rating on the stock. Mizuho's price objective indicates a potential upside of 1.40% from the stock's previous close.

Other research analysts also recently issued reports about the company. Barclays cut their target price on GitLab from $29.00 to $25.00 and set an "underweight" rating on the stock in a report on Wednesday, March 4th. Needham & Company LLC reissued a "buy" rating and issued a $32.00 price target on shares of GitLab in a research note on Monday, April 13th. Sanford C. Bernstein lowered their price objective on GitLab from $70.00 to $60.00 and set an "outperform" rating for the company in a research report on Wednesday, March 4th. Raymond James Financial lowered GitLab from an "outperform" rating to a "market perform" rating in a research note on Tuesday. Finally, Rosenblatt Securities decreased their target price on shares of GitLab from $55.00 to $43.00 and set a "buy" rating for the company in a research report on Wednesday, March 4th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, eighteen have issued a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $37.19.

GitLab Price Performance

GTLB opened at $25.64 on Tuesday. GitLab has a fifty-two week low of $18.73 and a fifty-two week high of $54.08. The firm has a market capitalization of $4.36 billion, a price-to-earnings ratio of -73.26 and a beta of 0.82. The company's 50 day moving average price is $22.67 and its two-hundred day moving average price is $32.68.

GitLab (NASDAQ:GTLB - Get Free Report) last released its quarterly earnings results 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 firm had revenue of $260.40 million during the quarter, compared to the consensus estimate of $252.31 million. During the same quarter last year, the firm earned $0.33 earnings per share. The company's revenue for the quarter was up 23.2% on a year-over-year basis. As a group, equities research analysts predict that GitLab will post -0.28 EPS for the current year.

Insider Transactions at GitLab

In other GitLab news, Director Matthew Jacobson sold 700,109 shares of the business's stock in a transaction that occurred on Thursday, March 19th. The stock was sold at an average price of $22.95, for a total value of $16,067,501.55. Following the transaction, the director directly owned 325 shares of the company's stock, valued at approximately $7,458.75. The trade was a 99.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Sytse Sijbrandij sold 116,200 shares of the firm's stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $20.77, for a total transaction of $2,413,474.00. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,330,408 shares of company stock worth $30,309,342 over the last three months. 10.64% of the stock is owned by company insiders.

Institutional Investors Weigh In On GitLab

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Goldman Sachs Group Inc. grew its stake in shares of GitLab by 1.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 776,521 shares of the company's stock valued at $36,496,000 after buying an additional 12,200 shares during the period. Woodline Partners LP bought a new position in GitLab in the first quarter worth approximately $314,000. Russell Investments Group Ltd. grew its stake in GitLab by 31.6% in the second quarter. Russell Investments Group Ltd. now owns 7,112 shares of the company's stock valued at $321,000 after acquiring an additional 1,709 shares during the period. California Public Employees Retirement System increased its holdings in shares of GitLab by 17.0% during the second quarter. California Public Employees Retirement System now owns 167,870 shares of the company's stock valued at $7,573,000 after acquiring an additional 24,448 shares in the last quarter. Finally, State Street Corp raised its position in shares of GitLab by 7.0% during the second quarter. State Street Corp now owns 2,283,597 shares of the company's stock worth $103,013,000 after purchasing an additional 148,713 shares during the period. 95.04% of the stock is owned by institutional investors.

About GitLab

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.

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