GitLab (NASDAQ:GTLB) Shares Gap Up – Should You Buy?

GitLab Inc. (NASDAQ:GTLB)’s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $49.97, but opened at $52.66. GitLab shares last traded at $53.08, with a volume of 963,502 shares.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Wells Fargo & Company increased their price objective on shares of GitLab from $70.00 to $75.00 and gave the stock an “overweight” rating in a research note on Wednesday, September 4th. UBS Group raised their price target on shares of GitLab from $62.00 to $65.00 and gave the company a “buy” rating in a research report on Wednesday, September 4th. Cantor Fitzgerald restated an “overweight” rating and set a $55.00 price target on shares of GitLab in a research report on Monday, August 19th. Scotiabank raised their price target on shares of GitLab from $59.00 to $65.00 and gave the company a “sector outperform” rating in a research report on Wednesday, September 4th. Finally, Morgan Stanley began coverage on shares of GitLab in a research report on Wednesday. They set an “overweight” rating and a $70.00 price target on the stock. Four analysts have rated the stock with a hold rating, twenty have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $66.22.

GitLab Price Performance

The company’s 50 day moving average price is $48.99 and its two-hundred day moving average price is $51.16.

GitLab (NASDAQ:GTLB) last issued its earnings results on Tuesday, September 3rd. The company reported $0.15 EPS for the quarter, topping analysts’ consensus estimates of $0.10 by $0.05. GitLab had a negative net margin of 54.62% and a negative return on equity of 15.40%. The company had revenue of $182.58 million for the quarter, compared to the consensus estimate of $176.86 million. During the same period in the previous year, the firm earned ($0.29) earnings per share. GitLab’s quarterly revenue was up 30.8% compared to the same quarter last year. As a group, research analysts anticipate that GitLab Inc. will post -0.41 EPS for the current year.

Insider Buying and Selling at GitLab

In other GitLab news, CFO Brian G. Robins sold 23,332 shares of GitLab stock in a transaction dated Thursday, August 1st. The shares were sold at an average price of $49.24, for a total transaction of $1,148,867.68. Following the completion of the sale, the chief financial officer now directly owns 259,109 shares in the company, valued at $12,758,527.16. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In related news, CFO Brian G. Robins sold 23,332 shares of GitLab stock in a transaction that occurred on Thursday, August 1st. The shares were sold at an average price of $49.24, for a total value of $1,148,867.68. Following the completion of the transaction, the chief financial officer now owns 259,109 shares in the company, valued at approximately $12,758,527.16. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Sytse Sijbrandij sold 56,000 shares of GitLab stock in a transaction that occurred on Monday, July 15th. The shares were sold at an average price of $48.99, for a total transaction of $2,743,440.00. The disclosure for this sale can be found here. Insiders sold a total of 107,765 shares of company stock worth $5,420,967 over the last three months. Insiders own 21.36% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Harbert Fund Advisors Inc. lifted its stake in GitLab by 6.7% in the fourth quarter. Harbert Fund Advisors Inc. now owns 12,000 shares of the company’s stock worth $756,000 after acquiring an additional 750 shares during the last quarter. Oracle Alpha Inc. purchased a new position in GitLab in the fourth quarter worth approximately $971,000. Occudo Quantitative Strategies LP purchased a new position in GitLab in the fourth quarter worth approximately $5,900,000. Quarry LP lifted its stake in GitLab by 75.1% in the fourth quarter. Quarry LP now owns 1,166 shares of the company’s stock worth $73,000 after acquiring an additional 500 shares during the last quarter. Finally, Tucker Asset Management LLC purchased a new position in GitLab in the fourth quarter worth approximately $83,000. Institutional investors and hedge funds own 91.72% 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.