Stock traders demonstrated a significant interest in GitLab Inc. (NASDAQ:GTLB) on Tuesday, acquiring a remarkable 61,667 call options. This figure marks an increase of 285% compared to the average daily volume of 16,025 call options, indicating heightened investor activity surrounding the company.
Analysts Adjust Price Targets
Recent research reports underscore a range of perspectives on GitLab’s market position. On September 5, 2024, Barclays revised its price target for GitLab shares from $47.00 to $44.00, maintaining an “equal weight” rating. Similarly, Capital One Financial adjusted its stance from “overweight” to “equal weight,” setting a target price of $46.00 on July 16, 2024.
In contrast, Rosenblatt Securities reissued a “buy” rating and set a target price of $58.00 following a favorable review on September 4, 2024. Raymond James Financial also lowered its target price from $60.00 to $55.00, but retained an “outperform” rating for the stock. Mizuho’s report on October 7, 2024, indicated a downgrade from “outperform” to “neutral,” with a target price of $52.00.
Overall, GitLab has received ratings from analysts, with two designating it as a Strong Buy, eighteen giving it a Buy rating, seven assigning a Hold rating, and one issuing a Sell rating. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” with a consensus target price of $58.83.
Institutional Investors’ Activity
Institutional investors and hedge funds have been actively modifying their holdings in GitLab. Cambridge Investment Research Advisors Inc. acquired a new stake in the company valued at approximately $200,000 during the first quarter. Envestnet Asset Management Inc. increased its stake by 3.9%, now owning 307,749 shares worth around $14.5 million after acquiring an additional 11,657 shares.
Cerity Partners LLC raised its holdings by 32.7%, owning 72,973 shares valued at $3.43 million after purchasing an additional 17,973 shares. Xponance Inc. lifted its position by 6.6%, now owning 17,605 shares worth $827,000, while Arizona State Retirement System increased its stake by 2.1%, holding 32,363 shares valued at $1.52 million.
Currently, institutional investors and hedge funds own 95.04% of GitLab’s stock, reflecting strong institutional confidence in the company.
GitLab’s stock performance remained steady at $46.19 during midday trading on Tuesday, with 942,801 shares changing hands, compared to an average trading volume of 3,879,789. The company’s stock has fluctuated between a 52-week low of $37.90 and a high of $74.18. Its market capitalization stands at $7.70 billion.
In its most recent earnings report on September 3, 2024, GitLab reported earnings per share (EPS) of ($0.03), missing the consensus estimate of $0.16 by ($0.19). The company generated revenue of $236.00 million, surpassing the consensus estimate of $227.20 million. Despite a negative return on equity of -2.71% and a net margin of -0.55%, GitLab’s revenue showed a year-over-year increase of 29.2%.
Looking ahead, GitLab has provided guidance for fiscal year 2026, forecasting an EPS of 0.820-0.830 and for Q3 2026, an EPS of 0.190-0.200. Analysts predict that GitLab will post an EPS of -0.31 for the current fiscal year.
About GitLab
GitLab Inc., through its subsidiaries, develops software for the software development lifecycle across the United States, Europe, and the Asia Pacific. The company offers GitLab, a comprehensive DevOps platform that enhances cycle time and provides visibility and control throughout various stages of the DevOps lifecycle.
As GitLab continues to navigate the evolving market landscape, the surge in call options and institutional interest reflects investor confidence in its strategic direction and growth potential.
