On September 5, 2023, GitLab Inc. (NASDAQ: GTLB) experienced a notable spike in options trading as investors purchased a staggering 61,667 call options. This figure represents a remarkable increase of 285% compared to the average daily volume of 16,025 call options, signaling heightened interest among traders in the company’s stock.
Analyst Ratings Reflect Mixed Sentiment
Recent research reports on GitLab have presented a mixed outlook. Barclays lowered its price target for GitLab from $47.00 to $44.00, maintaining an “equal weight” rating in a note issued on September 5. Capital One Financial similarly downgraded its rating from “overweight” to “equal weight,” setting a new target price of $46.00.
Conversely, Rosenblatt Securities reaffirmed a “buy” rating, issuing a target price of $58.00. Raymond James Financial adjusted its target down from $60.00 to $55.00 while keeping an “outperform” rating. Mizuho also revised its stance, changing from “outperform” to “neutral” with a price target of $52.00. The consensus rating for GitLab currently stands at “Moderate Buy,” with an average target price of $58.83, according to MarketBeat.
Institutional Activity Shows Increased Investment
Institutional investors have recently adjusted their stakes in GitLab. Cambridge Investment Research Advisors Inc. acquired a new position in the company valued at approximately $200,000 during the first quarter. Envestnet Asset Management Inc. increased its holdings by 3.9%, now owning 307,749 shares worth $14.46 million after adding 11,657 shares.
Cerity Partners LLC boosted its stake by 32.7%, now controlling 72,973 shares valued at $3.43 million. Additionally, Xponance Inc. increased its holdings by 6.6% and Arizona State Retirement System raised its position by 2.1%. Currently, institutional investors and hedge funds hold 95.04% of GitLab’s stock.
GitLab’s stock performance remained stable, trading at $46.19 during midday on September 5, with 942,801 shares exchanged. The company has a market capitalization of $7.70 billion and a price-to-earnings ratio of -1,154.78. Over the past year, GitLab’s stock has fluctuated between a low of $37.90 and a high of $74.18.
Quarterly Earnings Report Highlights Challenges and Growth
GitLab recently released its quarterly earnings on September 3, reporting a loss of ($0.03) earnings per share (EPS), which fell short of the consensus estimate of $0.16 by ($0.19). The company’s revenue for the quarter was $236.00 million, surpassing the estimated $227.20 million. Year-over-year, GitLab’s revenue increased by 29.2%, despite a negative return on equity of 2.71% and a net margin of -0.55%.
For fiscal year 2026, GitLab has set guidance for EPS between 0.820-0.830 and for the third quarter of 2026, guidance is expected to fall between 0.190-0.200 EPS. Analysts forecast an average EPS of -0.31 for the current fiscal year.
GitLab Inc., through its subsidiaries, develops software aimed at streamlining the software development lifecycle across various regions including the United States, Europe, and Asia Pacific. The company offers a comprehensive DevOps platform which enhances visibility and control throughout the development process.
For those interested in ongoing updates and insights, MarketBeat offers a free daily email newsletter summarizing the latest news and analysts’ ratings for GitLab and similar companies.
