GitLab (NASDAQ:GTLB) Trading Down 5.7% – Here’s Why

GitLab Inc. (NASDAQ:GTLB) shares fell 5.7% during mid-day trading on Wednesday . The company traded as low as $62.02 and last traded at $62.57. 703,901 shares were traded during mid-day trading, a decline of 70% from the average session volume of 2,328,378 shares. The stock had previously closed at $66.37.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on GTLB. Scotiabank increased their target price 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. KeyCorp increased their target price on shares of GitLab from $62.00 to $74.00 and gave the company an “overweight” rating in a research report on Tuesday. Wells Fargo & Company upped their price target on shares of GitLab from $70.00 to $75.00 and gave the company an “overweight” rating in a report on Wednesday, September 4th. Royal Bank of Canada upped their price target on shares of GitLab from $55.00 to $60.00 and gave the company an “outperform” rating in a report on Wednesday, September 4th. Finally, Robert W. Baird upped their price target on shares of GitLab from $59.00 to $62.00 and gave the company an “outperform” rating in a report on Wednesday, September 4th. Three investment analysts have rated the stock with a hold rating, twenty have issued a buy rating and two have assigned a strong buy rating to the company’s stock. According to MarketBeat.com, GitLab currently has an average rating of “Moderate Buy” and a consensus target price of $67.17.

GitLab Stock Performance

The company has a market capitalization of $10.10 billion, a price-to-earnings ratio of -26.91 and a beta of 0.45. The company has a 50-day moving average price of $55.89 and a 200-day moving average price of $51.73.

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

Insiders Place Their Bets

In other news, CAO Erin Mannix sold 1,433 shares of the company’s stock in a transaction on Thursday, September 19th. The shares were sold at an average price of $52.80, for a total transaction of $75,662.40. Following the completion of the transaction, the chief accounting officer now directly owns 72,448 shares in the company, valued at approximately $3,825,254.40. This represents a 1.94 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Sytse Sijbrandij sold 84,776 shares of the business’s stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $59.64, for a total transaction of $5,056,040.64. The disclosure for this sale can be found here. Insiders have sold 185,033 shares of company stock valued at $10,569,356 in the last 90 days. 21.36% of the stock is currently owned by insiders.

Institutional Trading of GitLab

A number of large investors have recently bought and sold shares of the business. DNB Asset Management AS bought a new stake in shares of GitLab during the second quarter valued at approximately $37,851,000. Renaissance Technologies LLC boosted its holdings in GitLab by 168.8% during the second quarter. Renaissance Technologies LLC now owns 1,190,582 shares of the company’s stock worth $59,196,000 after purchasing an additional 747,712 shares during the last quarter. Primecap Management Co. CA lifted its position in shares of GitLab by 269.5% during the 2nd quarter. Primecap Management Co. CA now owns 827,040 shares of the company’s stock worth $41,120,000 after buying an additional 603,200 shares in the last quarter. Los Angeles Capital Management LLC purchased a new position in GitLab in the third quarter worth $30,827,000. Finally, Atreides Management LP bought a new position in GitLab during the third quarter valued at about $25,605,000. 91.72% of the stock is currently owned by institutional investors and hedge funds.

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.