Zacks Research Upgrades GitLab (NASDAQ:GTLB) to Strong-Buy

Key Points

• Zacks Research upgraded GitLab from “hold” to “strong-buy,” though the broader analyst consensus still sits at “hold” with an average target price of $36.64.
• GitLab posted better-than-expected quarterly results, reporting EPS of $0.23 on revenue of $264.16 million, with revenue up 23.2% year over year.
• The stock fell 5.9% despite the upbeat earnings and upgrade, and insider selling has been notable, including large share sales by two directors over recent months.

GitLab (NASDAQ:GTLB - Get Free Report) was upgraded by stock analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a note issued to investors on Tuesday,Zacks.com reports.

GTLB has been the topic of several other research reports. Needham & Company LLC boosted their target price on shares of GitLab from $32.00 to $38.00 and gave the company a "buy" rating in a report on Wednesday, June 3rd. Piper Sandler lowered shares of GitLab from an "overweight" rating to a "neutral" rating and dropped their target price for the company from $55.00 to $28.00 in a report on Wednesday, March 4th. Royal Bank Of Canada boosted their target price on shares of GitLab from $25.00 to $29.00 and gave the company a "sector perform" rating in a report on Wednesday, June 3rd. Truist Financial dropped their target price on shares of GitLab from $35.00 to $25.00 and set a "hold" rating on the stock in a report on Wednesday, March 4th. Finally, Wolfe Research restated an "outperform" rating and issued a $36.00 target price on shares of GitLab in a report on Wednesday, June 3rd. Two investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, eighteen have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, GitLab presently has a consensus rating of "Hold" and a consensus target price of $36.64.

GitLab Stock Down 5.9%

Shares of GitLab stock opened at $28.51 on Tuesday. GitLab has a twelve month low of $18.73 and a twelve month high of $52.38. The stock has a market cap of $4.85 billion, a price-to-earnings ratio of -178.19 and a beta of 0.96. The company's fifty day moving average is $24.63 and its 200 day moving average is $29.78.

GitLab (NASDAQ:GTLB - Get Free Report) last issued its quarterly earnings data on Tuesday, June 2nd. The company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.03. GitLab had a negative net margin of 2.49% and a positive return on equity of 0.31%. The company had revenue of $264.16 million for the quarter, compared to analysts' expectations of $254.23 million. During the same quarter in the previous year, the firm posted $0.17 earnings per share. GitLab's revenue for the quarter was up 23.2% on a year-over-year basis. GitLab has set its Q2 2027 guidance at 0.170-0.180 EPS. As a group, equities analysts anticipate that GitLab will post -0.18 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Matthew Jacobson sold 700,109 shares of the company's stock in a transaction dated Thursday, March 19th. The shares were sold at an average price of $22.95, for a total value of $16,067,501.55. Following the sale, the director owned 325 shares in the company, valued at $7,458.75. This represents a 99.95% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Sytse Sijbrandij sold 116,200 shares of the company's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $24.85, for a total transaction of $2,887,570.00. Following the completion of the sale, the director owned 15,018,251 shares in the company, valued at $373,203,537.35. This represents a 0.77% decrease in their position. 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 have sold 1,392,308 shares of company stock worth $31,654,249 over the last ninety days. 10.64% of the stock is owned by insiders.

Institutional Investors Weigh In On GitLab

A number of institutional investors have recently added to or reduced their stakes in the company. Bank of America Corp DE grew its position in GitLab by 55.3% in the 1st quarter. Bank of America Corp DE now owns 1,955,648 shares of the company's stock worth $42,320,000 after purchasing an additional 696,096 shares in the last quarter. Bull Harbor Capital LLC bought a new stake in GitLab in the 1st quarter worth about $468,000. Amundi grew its position in GitLab by 66.5% in the 1st quarter. Amundi now owns 97,157 shares of the company's stock worth $2,102,000 after purchasing an additional 38,819 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in GitLab by 28.5% in the 1st quarter. EverSource Wealth Advisors LLC now owns 7,731 shares of the company's stock worth $167,000 after purchasing an additional 1,713 shares in the last quarter. Finally, California State Teachers Retirement System grew its position in GitLab by 21.7% in the 1st quarter. California State Teachers Retirement System now owns 154,699 shares of the company's stock worth $3,348,000 after purchasing an additional 27,624 shares in the last quarter. 95.04% of the stock is owned by institutional investors.

GitLab Company Profile

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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