GitLab (NASDAQ:GTLB) Downgraded to Hold Rating by Zacks Research

GitLab (NASDAQ:GTLB) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Several other analysts have also issued reports on the company. Wells Fargo & Company reduced their target price on GitLab from $50.00 to $45.00 and set an “equal weight” rating on the stock in a report on Wednesday, December 3rd. BTIG Research assumed coverage on GitLab in a research note on Tuesday, December 16th. They issued a “buy” rating and a $52.00 price target for the company. Sanford C. Bernstein reiterated an “outperform” rating on shares of GitLab in a research note on Wednesday, December 3rd. Weiss Ratings reissued a “sell (d-)” rating on shares of GitLab in a report on Monday, December 22nd. Finally, Needham & Company LLC dropped their target price on shares of GitLab from $55.00 to $50.00 and set a “buy” rating for the company in a research report on Wednesday, December 3rd. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, GitLab presently has a consensus rating of “Hold” and a consensus target price of $50.79.

GitLab Trading Down 7.1%

Shares of GTLB opened at $32.84 on Monday. GitLab has a 12 month low of $32.08 and a 12 month high of $74.04. The firm’s 50 day moving average is $37.38 and its 200-day moving average is $42.96. The stock has a market capitalization of $5.53 billion, a PE ratio of -121.63 and a beta of 0.75.

GitLab (NASDAQ:GTLB) last issued its quarterly earnings results on Tuesday, December 2nd. The company reported $0.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.05. GitLab had a negative return on equity of 1.51% and a negative net margin of 4.70%.The business had revenue of $244.35 million during the quarter, compared to analysts’ expectations of $239.31 million. During the same period in the previous year, the company posted $0.23 earnings per share. The firm’s revenue for the quarter was up 24.6% compared to the same quarter last year. GitLab has set its FY 2026 guidance at 0.950-0.960 EPS and its Q4 2026 guidance at 0.220-0.230 EPS. Equities research analysts predict that GitLab will post -0.31 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Matthew Jacobson sold 334,827 shares of GitLab stock in a transaction that occurred on Friday, December 19th. The shares were sold at an average price of $38.08, for a total transaction of $12,750,212.16. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Sytse Sijbrandij sold 54,300 shares of the company’s stock in a transaction that occurred on Wednesday, January 14th. The stock was sold at an average price of $35.96, for a total transaction of $1,952,628.00. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 766,644 shares of company stock worth $30,370,356 in the last quarter. Corporate insiders own 21.36% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Harel Insurance Investments & Financial Services Ltd. bought a new stake in GitLab in the third quarter valued at approximately $2,029,000. Coronation Fund Managers Ltd. bought a new position in GitLab during the second quarter worth $23,102,000. Nordea Investment Management AB grew its stake in shares of GitLab by 85.5% in the 3rd quarter. Nordea Investment Management AB now owns 1,132,977 shares of the company’s stock valued at $51,392,000 after buying an additional 522,075 shares during the period. William Blair Investment Management LLC grew its stake in GitLab by 23.3% in the second quarter. William Blair Investment Management LLC now owns 580,752 shares of the company’s stock valued at $26,198,000 after acquiring an additional 109,708 shares during the period. Finally, ARK Investment Management LLC grew its position in GitLab by 35.7% in the 2nd quarter. ARK Investment Management LLC now owns 3,292,685 shares of the company’s stock valued at $148,533,000 after purchasing an additional 866,353 shares during the period. 95.04% of the stock is currently 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.