GitLab (NASDAQ:GTLB) Stock Price Expected to Rise, Morgan Stanley Analyst Says

GitLab (NASDAQ:GTLB) had its price objective boosted by equities research analysts at Morgan Stanley from $30.00 to $57.00 in a report released on Wednesday, Benzinga reports. The brokerage currently has an “equal weight” rating on the stock. Morgan Stanley’s price objective would suggest a potential upside of 26.41% from the company’s current price.

Several other analysts have also issued reports on GTLB. Wells Fargo & Company upped their price objective on GitLab from $26.00 to $40.00 and gave the company an “equal weight” rating in a research note on Tuesday, August 25th. Wolfe Research reiterated an “outperform” rating and set a $36.00 target price on shares of GitLab in a research note on Wednesday, June 3rd. Raymond James Financial reissued a “market perform” rating on shares of GitLab in a report on Tuesday, May 19th. JPMorgan Chase & Co. increased their price target on GitLab from $32.00 to $44.00 and gave the company a “neutral” rating in a research note on Wednesday, August 26th. Finally, Truist Financial raised their price target on GitLab from $30.00 to $40.00 and gave the company a “hold” rating in a report on Thursday, August 20th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eighteen have issued a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $47.76.

GitLab Price Performance

GitLab stock opened at $45.09 on Wednesday. The company’s 50-day moving average is $36.06 and its 200-day moving average is $28.83. The firm has a market capitalization of $7.62 billion, a PE ratio of -281.81 and a beta of 0.99. GitLab has a fifty-two week low of $18.73 and a fifty-two week high of $52.38.

GitLab (NASDAQ:GTLB) last issued its earnings results on Tuesday, September 1st. The company reported $0.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.06. GitLab had a negative net margin of 2.49% and a positive return on equity of 0.31%. The business had revenue of $286.25 million during the quarter, compared to the consensus estimate of $273.13 million. During the same period last year, the business posted $0.24 EPS. GitLab’s revenue was up 21.3% on a year-over-year basis. GitLab has set its FY 2027 guidance at 0.850-0.870 EPS and its Q3 2027 guidance at 0.190-0.200 EPS. As a group, analysts expect that GitLab will post -0.18 EPS for the current year.

Insider Activity at GitLab

In related news, CAO Simon Mundy sold 8,725 shares of GitLab stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $38.00, for a total transaction of $331,550.00. Following the completion of the sale, the chief accounting officer directly owned 105,332 shares of the company’s stock, valued at approximately $4,002,616. This trade represents a 7.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sytse Sijbrandij sold 116,200 shares of the business’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $28.44, for a total value of $3,304,728.00. Following the completion of the sale, the director owned 14,902,051 shares of the company’s stock, valued at $423,814,330.44. This trade represents a 0.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 10.64% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in GTLB. AQR Capital Management LLC boosted its position in shares of GitLab by 766.3% in the fourth quarter. AQR Capital Management LLC now owns 5,433,375 shares of the company’s stock valued at $203,915,000 after acquiring an additional 4,806,163 shares during the period. California State Teachers Retirement System grew its stake in shares of GitLab by 3,090.9% in the second quarter. California State Teachers Retirement System now owns 4,936,335 shares of the company’s stock valued at $161,688,000 after acquiring an additional 4,781,636 shares in the last quarter. Atreides Management LP increased its position in GitLab by 867.3% during the second quarter. Atreides Management LP now owns 3,938,198 shares of the company’s stock worth $177,652,000 after acquiring an additional 3,531,070 shares during the period. SG Americas Securities LLC increased its position in GitLab by 6,528.0% during the first quarter. SG Americas Securities LLC now owns 3,135,394 shares of the company’s stock worth $67,850,000 after acquiring an additional 3,088,089 shares during the period. Finally, Norges Bank acquired a new stake in GitLab in the 4th quarter worth about $81,379,000. Institutional investors own 95.04% of the company’s stock.

GitLab News Roundup

Here are the key news stories impacting GitLab this week:

• Positive Sentiment: GitLab reported quarterly earnings of $0.24 per share, exceeding the $0.18 analyst consensus, while revenue reached $286.25 million versus expectations of $273.13 million. Revenue grew 21.3% year over year, providing evidence of continued demand for the company’s DevSecOps platform. GitLab Inc. Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company issued fiscal 2027 EPS guidance of $0.85-$0.87, well above the $0.61 consensus, and third-quarter EPS guidance of $0.19-$0.20 versus expectations of $0.12. Revenue guidance was broadly in line with estimates, suggesting that the earnings benefit is being driven primarily by improved profitability. GitLab Rallies After Record Bookings and Strong Guidance
• Positive Sentiment: Management highlighted record bookings and strong AI demand, which reinforced the growth outlook and helped drive the post-earnings rally. GitLab’s Q2 2027 Earnings
• Positive Sentiment: BTIG raised its price target from $36 to $52 and maintained a “buy” rating. Cantor Fitzgerald raised its target to $50, while DA Davidson lifted its target to $45. BTIG Research Forecasts Strong Price Appreciation
• Positive Sentiment: Unusually heavy call-option activity ahead of the earnings release reflected increased bullish speculation, with call volume approximately 210% above its average daily level.
• Neutral Sentiment: Despite the improved outlook, GitLab remains unprofitable on a net-income basis, and its shares are trading well above both their 50-day and 200-day moving averages.
• Negative Sentiment: Barron’s cautioned investors against chasing the rally because the stock had already gained substantially over the prior three months. The elevated valuation and recent momentum increase the risk of profit-taking or disappointment if future results do not exceed the newly raised expectations. GitLab Stock Soars After Earnings

GitLab Company Profile

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.