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

Shares of GitLab Inc. (NASDAQ:GTLB) gapped up before the market opened on Wednesday following a stronger than expected earnings report. 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 trading hands.

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

Wall Street Analysts Forecast Growth

A number of research firms recently commented on GTLB. Needham & Company LLC reiterated a “hold” rating on shares of GitLab in a research note on Wednesday. Barclays decreased their price target on shares of GitLab from $55.00 to $50.00 and set an “equal weight” rating on the stock in a research report on Tuesday, June 4th. Baird R W upgraded shares of GitLab to a “strong-buy” rating in a research report on Tuesday, August 27th. Royal Bank of Canada lifted their price target on shares of GitLab from $55.00 to $60.00 and gave the stock an “outperform” rating in a research report on Wednesday. Finally, DA Davidson restated a “neutral” rating and issued a $50.00 price target on shares of GitLab in a research report on Thursday, August 29th. Four research analysts have rated the stock with a hold rating, twenty-two have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, GitLab presently has an average rating of “Moderate Buy” and a consensus target price of $65.63.

Insiders Place Their Bets

In other GitLab news, Director Karen Blasing sold 4,430 shares of the business’s stock in a transaction on Wednesday, July 17th. The shares were sold at an average price of $56.25, for a total transaction of $249,187.50. Following the completion of the transaction, the director now owns 150,983 shares of the company’s stock, valued at approximately $8,492,793.75. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In other news, insider Robin Schulman sold 2,402 shares of the business’s stock in a transaction dated Wednesday, July 17th. The shares were sold at an average price of $56.25, for a total transaction of $135,112.50. Following the transaction, the insider now owns 142,933 shares in the company, valued at approximately $8,039,981.25. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Karen Blasing sold 4,430 shares of the business’s stock in a transaction dated Wednesday, July 17th. The stock was sold at an average price of $56.25, for a total transaction of $249,187.50. Following the transaction, the director now owns 150,983 shares in the company, valued at approximately $8,492,793.75. The disclosure for this sale can be found here. Insiders sold a total of 140,275 shares of company stock valued at $6,848,847 in the last quarter. Insiders own 21.36% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. increased its stake in GitLab by 12.9% in the fourth quarter. Vanguard Group Inc. now owns 9,388,440 shares of the company’s stock valued at $591,096,000 after acquiring an additional 1,070,994 shares during the period. Capital Research Global Investors increased its stake in GitLab by 78.5% in the first quarter. Capital Research Global Investors now owns 7,040,410 shares of the company’s stock valued at $410,597,000 after acquiring an additional 3,096,437 shares during the period. Norges Bank bought a new stake in GitLab in the fourth quarter valued at about $222,591,000. Fiera Capital Corp increased its stake in GitLab by 1.2% in the second quarter. Fiera Capital Corp now owns 1,242,468 shares of the company’s stock valued at $61,776,000 after acquiring an additional 14,687 shares during the period. Finally, 1832 Asset Management L.P. bought a new stake in GitLab in the fourth quarter valued at about $76,918,000. Institutional investors own 91.72% of the company’s stock.

GitLab Price Performance

The firm has a market cap of $8.64 billion, a P/E ratio of -19.67 and a beta of 0.46. The stock’s 50 day moving average is $48.75 and its two-hundred day moving average is $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.