TLDR
- GitLab (GTLB) hit a 52-week low of $27.77, down 57% from its high of $69.69 over the past year.
- The stock dropped 9.1% intraday on February 20, trading as low as $26.40 on volume 69% above average.
- Despite beating Q3 earnings ($0.25 EPS vs. $0.20 est.) and posting 24.6% revenue growth, the stock continues to slide.
- Barclays and Cantor Fitzgerald both downgraded GTLB, citing customer acquisition challenges and rising competition from GitHub and Atlassian.
- Insiders sold 603,744 shares worth ~$22.5M last quarter, though institutional ownership remains high at 95%.
GitLab (GTLB) closed at a 52-week low of $27.77 on February 20, 2026. The stock has now fallen 57% from its 52-week high of $69.69.
Intraday, it dropped as low as $26.40, with about 9 million shares traded — up 69% from the daily average. The previous close was $28.74.
The selloff came despite a solid last quarter. GitLab posted EPS of $0.25, beating the $0.20 estimate, and revenue of $244.35 million — up 24.6% year-over-year and above the $239.31 million consensus.
So why is the stock falling? The market is pricing in longer-term concerns, not last quarter’s numbers.
The stock now trades well below its 50-day moving average of $34.83 and its 200-day moving average of $41.58. InvestingPro pegs its fair value at $33.42, suggesting the stock may be trading below what the fundamentals support.
GitLab carries a market cap of around $4.44–$4.84 billion depending on the session. Its P/E ratio sits at -97.74, reflecting that the company is still unprofitable, with a negative net margin of 4.70% and a negative return on equity of 1.51%.
Analyst Downgrades Pile Up
Barclays downgraded GTLB from Equalweight to Underweight, pointing to execution issues and difficulty signing new customers — especially in the SMB segment. Cantor Fitzgerald also moved from Overweight to Neutral, flagging growing competition from GitHub and Atlassian.
Mizuho cut its price target from $47 to $37, keeping a Neutral rating. Truist Financial set a $35 target. Piper Sandler dropped its target from $70 to $55 but kept an Overweight rating.
The consensus across 29 analysts is currently a Hold, with an average price target of $49.58 — nearly double where the stock is trading right now.
One analyst rates it Strong Buy, fourteen say Buy, twelve say Hold, and two say Sell.
Insider Selling Raises Eyebrows
Last quarter, insiders sold 603,744 shares worth roughly $22.5 million. CAO Simon Mundy sold 2,756 shares at $38.42 in December, reducing his position by 5.52%. Director Susan L. Bostrom sold 30,000 shares at $39.25, cutting her stake by 37.59%.
Insiders hold 16.37% of the stock. Institutional ownership sits at 95.04%, with several hedge funds adding small positions in Q3 and Q4.
GitLab also named Siva Padisetty as its new CTO, effective January 15, replacing Sabrina Farmer.
DA Davidson maintained a Neutral rating after noting the federal government shutdown created new headwinds during the quarter, setting a price target of $45.
FY 2026 guidance from the company stands at $0.95–$0.96 EPS, with Q4 2026 guidance at $0.22–$0.23 EPS.
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