Bank of America Downgrades GitLab (NASDAQ:GTLB) to Neutral

GitLab (NASDAQ:GTLB) was downgraded by equities researchers at Bank of America from a “buy” rating to a “neutral” rating in a research note issued to investors on Wednesday, Marketbeat Ratings reports. They presently have a $27.00 price objective on the stock, down from their prior price objective of $58.00. Bank of America‘s target price would indicate a potential upside of 30.69% from the company’s current price.

A number of other analysts have also commented on the company. Morgan Stanley decreased their price objective on GitLab from $38.00 to $29.00 and set a “cautious” rating on the stock in a research note on Monday, March 9th. Piper Sandler lowered shares of GitLab from an “overweight” rating to a “neutral” rating and reduced their target price for the company from $55.00 to $28.00 in a report on Wednesday, March 4th. Cantor Fitzgerald reaffirmed a “neutral” rating on shares of GitLab in a research note on Wednesday, March 4th. Sanford C. Bernstein decreased their price target on shares of GitLab from $70.00 to $60.00 and set an “outperform” rating on the stock in a research note on Wednesday, March 4th. Finally, Zacks Research downgraded shares of GitLab from a “strong-buy” rating to a “hold” rating in a report on Monday, February 2nd. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seventeen have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, GitLab currently has a consensus rating of “Hold” and an average target price of $37.35.

GitLab Price Performance

Shares of GitLab stock opened at $20.66 on Wednesday. GitLab has a 1 year low of $18.73 and a 1 year high of $54.08. The business has a 50 day moving average price of $23.43 and a 200 day moving average price of $34.44. The company has a market capitalization of $3.51 billion, a P/E ratio of -59.03 and a beta of 0.85.

GitLab (NASDAQ:GTLB) last announced its earnings results on Tuesday, March 3rd. The company reported $0.30 EPS for the quarter, beating analysts’ consensus estimates of $0.23 by $0.07. GitLab had a negative return on equity of 1.73% and a negative net margin of 5.86%.The firm had revenue of $260.40 million for the quarter, compared to analysts’ expectations of $252.31 million. During the same quarter in the prior year, the firm earned $0.33 EPS. GitLab’s quarterly revenue was up 23.2% on a year-over-year basis. As a group, research analysts expect that GitLab will post -0.28 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Matthew Jacobson sold 459,799 shares of the stock in a transaction on Friday, March 20th. The stock was sold at an average price of $22.37, for a total value of $10,285,703.63. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Sytse Sijbrandij sold 116,200 shares of GitLab stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $20.77, for a total value of $2,413,474.00. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 1,330,408 shares of company stock valued at $30,309,342. Insiders own 16.37% of the company’s stock.

Hedge Funds Weigh In On GitLab

Several hedge funds and other institutional investors have recently modified their holdings of GTLB. Allworth Financial LP grew its holdings in shares of GitLab by 124.1% during the 3rd quarter. Allworth Financial LP now owns 558 shares of the company’s stock worth $25,000 after purchasing an additional 309 shares during the period. Quarry LP purchased a new position in GitLab in the third quarter valued at approximately $31,000. Lodestone Wealth Management LLC purchased a new position in GitLab in the fourth quarter valued at approximately $36,000. Farther Finance Advisors LLC lifted its position in GitLab by 284.3% during the third quarter. Farther Finance Advisors LLC now owns 907 shares of the company’s stock valued at $41,000 after buying an additional 671 shares in the last quarter. Finally, Global Retirement Partners LLC lifted its position in GitLab by 84.1% during the third quarter. Global Retirement Partners LLC now owns 974 shares of the company’s stock valued at $44,000 after buying an additional 445 shares in the last quarter. 95.04% of the stock is owned by institutional investors and hedge funds.

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.