GitLab (NASDAQ:GTLB) Price Target Cut to $40.00 by Analysts at Canaccord Genuity Group

GitLab (NASDAQ:GTLB) had its target price lowered by Canaccord Genuity Group from $70.00 to $40.00 in a report issued on Wednesday morning, Marketbeat reports. The brokerage currently has a buy rating on the stock.

Several other brokerages also recently issued reports on GTLB. Piper Sandler downgraded shares of GitLab from an “overweight” rating to a “neutral” rating and cut their target price for the company from $55.00 to $28.00 in a research note on Wednesday. Sanford C. Bernstein cut their price target on GitLab from $70.00 to $60.00 and set an “outperform” rating for the company in a report on Wednesday. Truist Financial set a $35.00 price objective on shares of GitLab in a report on Thursday, February 5th. Rosenblatt Securities reissued a “buy” rating and issued a $58.00 price objective on shares of GitLab in a research report on Monday, December 1st. Finally, BTIG Research reduced their target price on shares of GitLab from $32.00 to $30.00 and set a “buy” rating for the company in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fourteen have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, GitLab has a consensus rating of “Hold” and an average target price of $40.19.

GitLab Stock Down 6.2%

NASDAQ:GTLB opened at $25.05 on Wednesday. GitLab has a twelve month low of $23.10 and a twelve month high of $64.42. The firm has a market capitalization of $4.22 billion, a price-to-earnings ratio of -71.57 and a beta of 0.79. The stock’s 50 day moving average price is $32.89 and its two-hundred day moving average price is $40.70.

GitLab (NASDAQ:GTLB) last released its earnings results on Tuesday, March 3rd. The company reported $0.30 earnings per share for the quarter, beating the consensus estimate of $0.23 by $0.07. The business had revenue of $260.40 million during the quarter, compared to analysts’ expectations of $252.31 million. GitLab had a negative net margin of 5.86% and a negative return on equity of 1.79%. The firm’s revenue was up 23.2% on a year-over-year basis. During the same period last year, the business earned $0.33 earnings per share. As a group, analysts anticipate that GitLab will post -0.31 earnings per share for the current year.

Insider Activity at GitLab

In other GitLab news, Director Matthew Jacobson sold 334,827 shares of the firm’s stock in a transaction on Friday, December 19th. The stock was sold at an average price of $38.08, for a total transaction of $12,750,212.16. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO James Shen sold 2,538 shares of GitLab stock in a transaction on Wednesday, December 31st. The shares were sold at an average price of $38.08, for a total value of $96,647.04. Following the completion of the transaction, the chief financial officer directly owned 52,284 shares of the company’s stock, valued at $1,990,974.72. This represents a 4.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 603,744 shares of company stock valued at $22,536,495. 16.37% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Allworth Financial LP increased its holdings in GitLab by 124.1% in the 3rd quarter. Allworth Financial LP now owns 558 shares of the company’s stock valued at $25,000 after buying an additional 309 shares during the period. Quarry LP bought a new stake in shares of GitLab during the 3rd quarter worth approximately $31,000. Farther Finance Advisors LLC boosted its position in shares of GitLab by 284.3% during the 3rd quarter. Farther Finance Advisors LLC now owns 907 shares of the company’s stock worth $41,000 after acquiring an additional 671 shares in the last quarter. Lodestone Wealth Management LLC bought a new position in GitLab in the fourth quarter valued at approximately $36,000. Finally, Global Retirement Partners LLC increased its stake in GitLab by 84.1% in the third quarter. Global Retirement Partners LLC now owns 974 shares of the company’s stock valued at $44,000 after acquiring an additional 445 shares during the last quarter. Institutional investors and hedge funds own 95.04% of the company’s stock.

Key GitLab News

Here are the key news stories impacting GitLab this week:

• Positive Sentiment: Q4 results beat expectations — revenue grew ~23% YoY and adjusted EPS topped consensus, showing strong SaaS growth and improved operating margins. Read More.
• Positive Sentiment: Shareholder-friendly moves — board authorized up to $400M for repurchases and management flagged surpassing $1B ARR, both supportive of per‑share value and a potential buying catalyst on dips. Read More.
• Positive Sentiment: Bull case on AI and cash flow — bullish analysts/commentary argue the sell‑off is overdone, citing GitLab’s AI roadmap, cash flow, and institutional ownership as a setup for a rebound once uncertainty abates. Read More.
• Neutral Sentiment: Mixed guidance — management gave FY27 EPS guidance that, on the EPS line, is stronger than street estimates but revenue guidance was roughly flat-to-miss versus consensus; this creates ambiguity (better earnings leverage vs. near‑term growth pace). Read More.
• Negative Sentiment: Market punished weak FY27 outlook and AI uncertainty — investors focused on the company’s cautious forward tone around AI-driven monetization and growth cadence, triggering the selloff despite the beat. Read More. and Read More.
• Negative Sentiment: Widespread analyst price‑target cuts — multiple firms trimmed targets (several notable cuts reported), reflecting lower near‑term expectations and amplifying selling pressure. Read More.
• Negative Sentiment: High intraday volume and new 52‑week lows — heavy trading and the stock hitting year‑low levels increased volatility and likely triggered stop orders and momentum selling. Read More.

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.