There is no doubt that GitLab Inc. (GTLB) ticks all the boxes.

GitLab Inc. (NASDAQ: GTLB) stock jumped 5.62% on Monday to $48.87 against a previous-day closing price of $46.27. With 1.45 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.96 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $49.15 whereas the lowest price it dropped to was $46.31. The 52-week range on GTLB shows that it touched its highest point at $80.84 and its lowest point at $30.74 during that stretch. It currently has a 1-year price target of $66.31.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of GTLB was up-trending over the past week, with a rise of 8.67%, but this was up by 5.19% over a month. Three-month performance surged to 4.27% while six-month performance fell -15.45%. The stock lost -19.94% in the past year, while it has gained 7.55% so far this year. A look at the trailing 12-month EPS for GTLB yields -1.22 with Next year EPS estimates of -0.54. For the next quarter, that number is -0.14. This implies an EPS growth rate of -44.70% for this year and 5.30% for next year.

Float and Shares Shorts:

At present, 148.88 million GTLB shares are outstanding with a float of 88.03 million shares on hand for trading. On Oct 13, 2022, short shares totaled 8.18 million, which was 5.50% higher than short shares on Sep 14, 2022. In addition to Mr. Sytse Sijbrandij as the firm’s Co-Founder, Chairman, Pres & CEO, Mr. Michael Eugene McBride serves as its Chief Revenue Officer.

Institutional Ownership:

Through their ownership of 81.94% of GTLB’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 34.65% of GTLB, in contrast to 31.71% held by mutual funds. Shares owned by individuals account for 27.38%. As the largest shareholder in GTLB with 10.72% of the stake, Iconiq Capital LLC holds 9,773,451 shares worth 9,773,451. A second-largest stockholder of GTLB, Morgan Stanley Investment Managem, holds 7,349,013 shares, controlling over 8.06% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in GTLB, holding 4,595,941 shares or 5.04% stake. With a 2.46% stake in GTLB, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 2,246,106 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.09% of GTLB stock, is the second-largest Mutual Fund holder. It holds 1,905,724 shares valued at 86.6 million. Morgan Stanley Instl. Fund-Growth holds 1.99% of the stake in GTLB, owning 1,815,172 shares worth 82.48 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GTLB since 16 analysts follow the stock currently. There are 14 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With GTLB analysts setting a high price target of $101.00 and a low target of $45.00, the average target price over the next 12 months is $65.64. Based on these targets, GTLB could surge 106.67% to reach the target high and fall by -7.92% to reach the target low. Reaching the average price target will result in a growth of 34.32% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. GTLB will report FY 2023 earnings on 03/14/2023. Analysts have provided yearly estimates in a range of -$0.55 being high and -$0.61 being low. For GTLB, this leads to a yearly average estimate of -$0.57. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. GitLab Inc. surprised analysts by $0.05 when it reported -$0.10 EPS against a consensus estimate of -$0.15. The surprise factor in the prior quarter was $0.08. Based on analyst estimates, the high estimate for the next quarter is -$0.12 and the low estimate is -$0.15. The average estimate for the next quarter is thus -$0.14.

Summary of Insider Activity:

Insiders traded GTLB stock several times over the past three months with 15 Buys and 16 Sells. In these transactions, 2,611,045 shares were bought while 1,980,264 shares were sold. The number of buy transactions has increased to 75 while that of sell transactions has risen to 52 over the past year. The total number of shares bought during that period was 42,374,535 while 14,500,808 shares were sold.

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