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

GitLab Inc. (NASDAQ:GTLB)’s stock price hit a new 52-week low during trading on Tuesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $32.69 and last traded at $32.6330, with a volume of 2924605 shares changing hands. The stock had previously closed at $35.35.

Several other brokerages also recently commented on GTLB. Morgan Stanley downgraded GitLab from an “overweight” rating to an “equal weight” rating and reduced their target price for the company from $55.00 to $42.00 in a report on Monday, January 12th. Wolfe Research reaffirmed an “outperform” rating and set a $50.00 price objective on shares of GitLab in a research note on Wednesday, December 3rd. JPMorgan Chase & Co. raised their target price on shares of GitLab from $52.00 to $53.00 and gave the stock a “neutral” rating in a report on Wednesday, December 3rd. Piper Sandler cut their price target on shares of GitLab from $70.00 to $55.00 and set an “overweight” rating on the stock in a report on Monday, January 5th. Finally, KeyCorp downgraded shares of GitLab from an “overweight” rating to a “sector weight” rating in a research report on Tuesday, December 16th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $50.50.

Insider Buying and Selling

In related news, CFO James Shen sold 2,538 shares of the business’s stock in a transaction that occurred on Wednesday, December 31st. The stock was sold at an average price of $38.08, for a total value of $96,647.04. Following the completion of the sale, the chief financial officer owned 52,284 shares of the company’s stock, valued at approximately $1,990,974.72. The trade was a 4.63% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Sytse Sijbrandij sold 54,300 shares of the stock in a transaction that occurred on Wednesday, January 14th. The stock was sold at an average price of $35.96, for a total value of $1,952,628.00. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 766,644 shares of company stock worth $30,370,356. Insiders own 16.37% of the company’s stock.

Institutional Investors Weigh In On GitLab

A number of large investors have recently bought and sold shares of GTLB. ANTIPODES PARTNERS Ltd bought a new stake in shares of GitLab during the 4th quarter worth $1,030,000. Allworth Financial LP grew its position in shares of GitLab by 770.8% in the fourth quarter. Allworth Financial LP now owns 4,859 shares of the company’s stock valued at $182,000 after purchasing an additional 4,301 shares during the last quarter. Freemont Management S.A. bought a new position in shares of GitLab in the fourth quarter worth about $1,689,000. Madison Asset Management LLC acquired a new position in shares of GitLab during the 4th quarter worth about $2,265,000. Finally, Pier 88 Investment Partners LLC bought a new stake in GitLab during the 4th quarter valued at approximately $141,000. 95.04% of the stock is currently owned by institutional investors.

GitLab Stock Performance

The company has a market capitalization of $5.15 billion, a P/E ratio of -113.37 and a beta of 0.75. The company has a 50-day simple moving average of $37.02 and a 200 day simple moving average of $42.81.

GitLab (NASDAQ:GTLB) last announced its quarterly earnings data on Tuesday, December 2nd. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.05. The business had revenue of $244.35 million for the quarter, compared to the consensus estimate of $239.31 million. GitLab had a negative net margin of 4.70% and a negative return on equity of 1.51%. GitLab’s quarterly revenue was up 24.6% on a year-over-year basis. During the same quarter last year, the company posted $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. As a group, sell-side analysts forecast that GitLab Inc. will post -0.31 earnings per share for the current 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.