GitLab (NASDAQ:GTLB) Shares Gap Down on Analyst Downgrade

GitLab Inc. (NASDAQ:GTLB) shares gapped down before the market opened on Wednesday after Cantor Fitzgerald lowered their price target on the stock from $70.00 to $60.00. The stock had previously closed at $48.51, but opened at $41.98. Cantor Fitzgerald currently has an overweight rating on the stock. GitLab shares last traded at $44.58, with a volume of 7,492,768 shares.

Other equities research analysts also recently issued reports about the company. Royal Bank of Canada decreased their price objective on GitLab from $80.00 to $68.00 and set an “outperform” rating for the company in a report on Monday, May 19th. DA Davidson lowered their price objective on shares of GitLab from $60.00 to $45.00 and set a “neutral” rating on the stock in a research report on Monday, April 14th. UBS Group dropped their price objective on shares of GitLab from $85.00 to $73.00 and set a “buy” rating on the stock in a research note on Wednesday. Needham & Company LLC decreased their target price on shares of GitLab from $85.00 to $55.00 and set a “buy” rating for the company in a research note on Wednesday. Finally, Macquarie restated an “outperform” rating and issued a $90.00 price target on shares of GitLab in a research report on Tuesday, March 4th. Four investment analysts have rated the stock with a hold rating, eighteen have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $66.05.

Insider Buying and Selling at GitLab

In related news, CFO Brian G. Robins sold 45,000 shares of the firm’s stock in a transaction on Tuesday, May 13th. The stock was sold at an average price of $53.04, for a total transaction of $2,386,800.00. Following the completion of the sale, the chief financial officer now directly owns 344,105 shares of the company’s stock, valued at $18,251,329.20. This trade represents a 11.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Sytse Sijbrandij sold 108,600 shares of the stock in a transaction that occurred on Tuesday, April 15th. The shares were sold at an average price of $42.87, for a total transaction of $4,655,682.00. The disclosure for this sale can be found here. Insiders sold a total of 461,584 shares of company stock valued at $23,192,574 in the last ninety days. Company insiders own 16.37% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Cullen Frost Bankers Inc. grew its position in GitLab by 174.9% in the first quarter. Cullen Frost Bankers Inc. now owns 525 shares of the company’s stock valued at $25,000 after purchasing an additional 334 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in GitLab by 5,700.0% during the 4th quarter. EverSource Wealth Advisors LLC now owns 522 shares of the company’s stock worth $29,000 after buying an additional 513 shares in the last quarter. Cloud Capital Management LLC acquired a new position in shares of GitLab during the 1st quarter worth about $29,000. Twin Tree Management LP bought a new position in shares of GitLab in the 1st quarter valued at about $29,000. Finally, CoreCap Advisors LLC grew its holdings in shares of GitLab by 327.5% in the 4th quarter. CoreCap Advisors LLC now owns 590 shares of the company’s stock valued at $33,000 after acquiring an additional 452 shares in the last quarter. 95.04% of the stock is owned by institutional investors and hedge funds.

GitLab Price Performance

The firm has a market cap of $7.37 billion, a price-to-earnings ratio of -140.51 and a beta of 0.75. The business has a 50-day moving average of $46.37 and a 200-day moving average of $55.81.

GitLab (NASDAQ:GTLB) last issued its quarterly earnings data on Tuesday, June 10th. The company reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.15 by $0.02. GitLab had a negative net margin of 6.83% and a negative return on equity of 11.72%. The company had revenue of $214.51 million for the quarter, compared to analyst estimates of $213.21 million. During the same period in the prior year, the firm earned $0.03 earnings per share. The company’s revenue was up 26.8% on a year-over-year basis. As a group, equities analysts anticipate that GitLab Inc. will post -0.31 EPS for the current fiscal year.

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.