GitLab (NASDAQ:GTLB) Sets New 1-Year Low After Analyst Downgrade

Shares of GitLab Inc. (NASDAQ:GTLB) reached a new 52-week low during trading on Wednesday after Royal Bank Of Canada lowered their price target on the stock from $48.00 to $40.00. Royal Bank Of Canada currently has an outperform rating on the stock. GitLab traded as low as $29.58 and last traded at $29.7210, with a volume of 1281137 shares traded. The stock had previously closed at $31.55.

Other research analysts also recently issued research reports about the stock. DA Davidson reissued a “neutral” rating and set a $45.00 price objective on shares of GitLab in a report on Monday, December 1st. Rosenblatt Securities reaffirmed a “buy” rating and issued a $58.00 price objective on shares of GitLab in a research note on Monday, December 1st. KeyCorp downgraded GitLab from an “overweight” rating to a “sector weight” rating in a research report on Tuesday, December 16th. Needham & Company LLC reissued a “buy” rating and issued a $50.00 target price on shares of GitLab in a report on Wednesday. Finally, Wolfe Research reaffirmed an “outperform” rating and set a $50.00 price target on shares of GitLab in a research note on Wednesday, December 3rd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $50.17.

Insider Transactions at GitLab

In related news, Director Sytse Sijbrandij sold 108,600 shares of the company’s stock in a transaction on Monday, November 17th. The stock was sold at an average price of $43.17, for a total transaction of $4,688,262.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Matthew Jacobson sold 334,827 shares of GitLab stock in a transaction dated Friday, December 19th. The shares were sold at an average price of $38.08, for a total value of $12,750,212.16. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 766,644 shares of company stock worth $30,370,356. Company insiders own 16.37% of the company’s stock.

Key Stories Impacting GitLab

Here are the key news stories impacting GitLab this week:

• Positive Sentiment: Needham & Company reaffirmed its “buy” rating and kept a $50 price target, signaling continued analyst confidence in growth/strategy. Benzinga
• Positive Sentiment: GitLab hosted “GitLab Transcend,” showcasing agentic AI use cases for automating software delivery — a product narrative that supports longer-term revenue upside if customers adopt AI-driven orchestration. BusinessWire
• Neutral Sentiment: Transcript coverage (Seeking Alpha) detailed GitLab’s discussion of agentic AI and product roadmap — useful for due diligence but not an immediate catalyst by itself. Seeking Alpha Transcript
• Neutral Sentiment: Reported short-interest entries show “0 shares” and NaN changes — this appears to be a data error and is not a reliable indicator of increased bearish positioning. (No actionable impact until corrected.)
• Negative Sentiment: RBC cut its price target from $48 to $40 while retaining an “outperform” rating — the lower target puts near-term valuation pressure and likely contributed to selling. MarketScreener
• Negative Sentiment: Coverage flagged by Yahoo points to analyst pushback on GitLab’s AI pricing strategy — concerns that aggressive AI monetization could slow adoption or margin realization may be weighing on investor sentiment. Yahoo

Institutional Investors Weigh In On GitLab

A number of large investors have recently bought and sold shares of GTLB. Harel Insurance Investments & Financial Services Ltd. acquired a new position in shares of GitLab in the 3rd quarter valued at $2,029,000. Coronation Fund Managers Ltd. acquired a new position in shares of GitLab during the 2nd quarter worth about $23,102,000. Nordea Investment Management AB raised its holdings in shares of GitLab by 85.5% during the third quarter. Nordea Investment Management AB now owns 1,132,977 shares of the company’s stock valued at $51,392,000 after acquiring an additional 522,075 shares during the last quarter. ARK Investment Management LLC lifted its position in shares of GitLab by 35.7% in the second quarter. ARK Investment Management LLC now owns 3,292,685 shares of the company’s stock valued at $148,533,000 after acquiring an additional 866,353 shares in the last quarter. Finally, William Blair Investment Management LLC boosted its stake in shares of GitLab by 23.3% in the second quarter. William Blair Investment Management LLC now owns 580,752 shares of the company’s stock worth $26,198,000 after acquiring an additional 109,708 shares during the last quarter. Hedge funds and other institutional investors own 95.04% of the company’s stock.

GitLab Stock Performance

The company has a 50 day moving average of $36.28 and a 200 day moving average of $42.36. The stock has a market capitalization of $5.06 billion, a price-to-earnings ratio of -111.19 and a beta of 0.75.

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

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.