GitLab (NASDAQ:GTLB) Shares Gap Up on Better-Than-Expected Earnings

Shares of GitLab Inc. (NASDAQ:GTLB) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $49.74, but opened at $52.14. GitLab shares last traded at $52.88, with a volume of 1,318,756 shares trading hands.

The company reported $0.01 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.03) by $0.04. GitLab had a negative net margin of 42.84% and a negative return on equity of 22.82%. The firm had revenue of $139.58 million for the quarter, compared to analyst estimates of $129.81 million. During the same quarter last year, the business posted ($0.40) earnings per share. The company’s quarterly revenue was up 38.1% on a year-over-year basis.

Analyst Upgrades and Downgrades

GTLB has been the topic of a number of research analyst reports. TD Cowen raised their target price on shares of GitLab from $56.00 to $63.00 and gave the company an “outperform” rating in a research report on Wednesday. Bank of America lifted their price target on shares of GitLab from $60.00 to $62.00 and gave the stock a “buy” rating in a report on Wednesday. DA Davidson lifted their price target on shares of GitLab from $45.00 to $50.00 and gave the stock a “neutral” rating in a report on Wednesday. KeyCorp lifted their price target on shares of GitLab from $50.00 to $60.00 in a report on Tuesday, July 18th. Finally, Barclays lifted their price target on shares of GitLab from $60.00 to $65.00 and gave the stock an “overweight” rating in a report on Wednesday. Five research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $61.94.

Insider Buying and Selling

In other GitLab news, CFO Brian G. Robins sold 30,000 shares of GitLab stock in a transaction on Monday, June 12th. The shares were sold at an average price of $47.75, for a total value of $1,432,500.00. Following the completion of the sale, the chief financial officer now directly owns 530,134 shares of the company’s stock, valued at $25,313,898.50. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. In other GitLab news, insider Dale R. Brown sold 2,680 shares of GitLab stock in a transaction on Tuesday, June 13th. The shares were sold at an average price of $50.00, for a total value of $134,000.00. Following the completion of the sale, the insider now directly owns 16,536 shares of the company’s stock, valued at $826,800. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CFO Brian G. Robins sold 30,000 shares of GitLab stock in a transaction on Monday, June 12th. The shares were sold at an average price of $47.75, for a total transaction of $1,432,500.00. Following the completion of the sale, the chief financial officer now directly owns 530,134 shares of the company’s stock, valued at $25,313,898.50. The disclosure for this sale can be found here. Insiders sold 290,580 shares of company stock valued at $15,179,123 over the last quarter. Insiders own 28.04% of the company’s stock.

Institutional Investors Weigh In On GitLab

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Raymond James & Associates increased its position in shares of GitLab by 62.6% during the first quarter. Raymond James & Associates now owns 4,289 shares of the company’s stock worth $234,000 after acquiring an additional 1,652 shares in the last quarter. Bank of New York Mellon Corp increased its position in shares of GitLab by 3,816.3% during the first quarter. Bank of New York Mellon Corp now owns 182,343 shares of the company’s stock worth $9,930,000 after acquiring an additional 177,687 shares in the last quarter. BlackRock Inc. increased its position in shares of GitLab by 13.1% during the first quarter. BlackRock Inc. now owns 2,821,575 shares of the company’s stock worth $153,635,000 after acquiring an additional 327,244 shares in the last quarter. Blair William & Co. IL increased its position in shares of GitLab by 229.4% during the first quarter. Blair William & Co. IL now owns 34,096 shares of the company’s stock worth $1,857,000 after acquiring an additional 23,746 shares in the last quarter. Finally, Sei Investments Co. bought a new stake in shares of GitLab during the first quarter worth about $1,634,000. 54.15% of the stock is owned by institutional investors.

GitLab Stock Up 0.5 %

The firm’s 50-day moving average price is $48.14 and its 200 day moving average price is $41.69. The company has a market capitalization of $7.64 billion, a P/E ratio of -37.31 and a beta of 0.18.

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.