GitLab (NASDAQ:GTLB) Shares Gap Up After Earnings Beat

GitLab Inc. (NASDAQ:GTLB)’s stock price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $44.68, but opened at $50.43. GitLab shares last traded at $52.85, with a volume of 3,661,205 shares.

The company reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.05. The business had revenue of $182.58 million for the quarter, compared to the consensus estimate of $176.86 million. GitLab had a negative net margin of 68.52% and a negative return on equity of 19.14%. The company’s quarterly revenue was up 30.8% on a year-over-year basis. During the same period last year, the firm earned ($0.29) earnings per share.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on GTLB shares. TD Cowen decreased their target price on shares of GitLab from $76.00 to $58.00 and set a “buy” rating on the stock in a research note on Tuesday, August 27th. Scotiabank raised their price objective on shares of GitLab from $59.00 to $65.00 and gave the company a “sector outperform” rating in a research report on Wednesday. JPMorgan Chase & Co. dropped their target price on shares of GitLab from $55.00 to $50.00 and set a “neutral” rating for the company in a report on Tuesday, June 4th. Bank of America increased their price target on GitLab from $66.00 to $68.00 and gave the stock a “buy” rating in a research note on Wednesday. Finally, DA Davidson reissued a “neutral” rating and issued a $50.00 price target on shares of GitLab in a report on Thursday, August 29th. Four analysts have rated the stock with a hold rating, twenty-two have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $65.63.

Insider Buying and Selling

In other GitLab news, CEO Sytse Sijbrandij sold 56,000 shares of the firm’s stock in a transaction dated Monday, July 15th. The shares were sold at an average price of $48.99, for a total value of $2,743,440.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other GitLab news, CEO Sytse Sijbrandij sold 56,000 shares of the company’s stock in a transaction on Monday, July 15th. The stock was sold at an average price of $48.99, for a total value of $2,743,440.00. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Robin Schulman sold 2,402 shares of GitLab stock in a transaction on Wednesday, July 17th. The stock was sold at an average price of $56.25, for a total value of $135,112.50. Following the sale, the insider now owns 142,933 shares of the company’s stock, valued at $8,039,981.25. The disclosure for this sale can be found here. Insiders have sold 140,275 shares of company stock valued at $6,848,847 in the last ninety days. 21.36% of the stock is owned by company insiders.

Institutional Investors Weigh In On GitLab

Several large investors have recently added to or reduced their stakes in GTLB. Allspring Global Investments Holdings LLC increased its position in shares of GitLab by 2,107.7% during the first quarter. Allspring Global Investments Holdings LLC now owns 574 shares of the company’s stock worth $33,000 after acquiring an additional 548 shares during the period. Banque Cantonale Vaudoise bought a new position in GitLab in the first quarter worth approximately $58,000. Future Financial Wealth Managment LLC purchased a new position in GitLab during the 1st quarter worth $58,000. Quarry LP raised its position in GitLab by 75.1% during the 4th quarter. Quarry LP now owns 1,166 shares of the company’s stock valued at $73,000 after purchasing an additional 500 shares in the last quarter. Finally, Tucker Asset Management LLC purchased a new stake in shares of GitLab in the 4th quarter worth $83,000. 91.72% of the stock is owned by hedge funds and other institutional investors.

GitLab Trading Up 16.4 %

The firm has a market cap of $8.26 billion, a P/E ratio of -19.22 and a beta of 0.46. The business has a 50-day moving average price of $48.75 and a 200-day moving average price of $53.11.

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.