GitLab Chair move could lower hurdle for potential suitor, says Raymond James

Raymond James analyst Adam Tindle notes that GitLab (GTLB) filed an 8-K disclosing that cofounder, former CEO and Executive Chair Sid Sijbrandij converted all of his Class B shares into Class A shares on May 14, which “arguably removes a potential hurdle for a suitor” given that Sijbrandij’s voting power declines from more than 50% as of April 1 to below 10% today. Sijbrandij remains GitLab’s largest individual shareholder, but the conversion “removes a concentrated super-voting control position and could lower the hurdle for potential corporate action,” says the analyst, who adds that “this market is moving very quickly and the argument is losing steam.” Raymond James maintains a Market Perform rating on GitLab shares.