GigaCloud Technology (NASDAQ:GCT) Shares Gap Up on Better-Than-Expected Earnings

GigaCloud Technology Inc. (NASDAQ:GCT) shares gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $35.31, but opened at $42.59. GigaCloud Technology shares last traded at $43.3060, with a volume of 552,416 shares trading hands.

The company reported $1.04 EPS for the quarter, topping the consensus estimate of $0.65 by $0.39. GigaCloud Technology had a net margin of 10.62% and a return on equity of 30.43%. The firm had revenue of $362.75 million for the quarter, compared to analyst estimates of $332.33 million. During the same period in the prior year, the business posted $0.76 EPS. The business’s revenue for the quarter was up 22.6% compared to the same quarter last year.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on GCT shares. Zacks Research lowered GigaCloud Technology from a “strong-buy” rating to a “hold” rating in a research note on Friday, January 16th. Weiss Ratings upgraded shares of GigaCloud Technology from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, January 27th. Finally, Wall Street Zen raised shares of GigaCloud Technology from a “hold” rating to a “buy” rating in a research note on Saturday, December 13th. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $24.00.

Insider Transactions at GigaCloud Technology

In related news, CEO Lei Wu sold 20,000 shares of the firm’s stock in a transaction that occurred on Thursday, January 22nd. The shares were sold at an average price of $40.78, for a total value of $815,600.00. Following the sale, the chief executive officer owned 678,090 shares of the company’s stock, valued at $27,652,510.20. This trade represents a 2.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Xinyan Hao sold 800 shares of GigaCloud Technology stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $40.04, for a total transaction of $32,032.00. Following the completion of the transaction, the chief operating officer owned 357,486 shares of the company’s stock, valued at $14,313,739.44. This represents a 0.22% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 171,910 shares of company stock worth $7,097,748 in the last ninety days. 24.71% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On GigaCloud Technology

Hedge funds have recently added to or reduced their stakes in the stock. Jones Financial Companies Lllp lifted its position in shares of GigaCloud Technology by 184.6% during the 3rd quarter. Jones Financial Companies Lllp now owns 908 shares of the company’s stock worth $27,000 after buying an additional 589 shares during the last quarter. Quarry LP acquired a new stake in GigaCloud Technology during the 3rd quarter worth $29,000. Larson Financial Group LLC purchased a new stake in GigaCloud Technology in the third quarter valued at $30,000. Caitong International Asset Management Co. Ltd purchased a new stake in GigaCloud Technology in the third quarter valued at $30,000. Finally, Wealth Enhancement Advisory Services LLC acquired a new position in GigaCloud Technology in the fourth quarter valued at $44,000. 34.94% of the stock is currently owned by hedge funds and other institutional investors.

GigaCloud Technology Stock Up 23.8%

The firm has a fifty day simple moving average of $39.22 and a 200-day simple moving average of $33.81. The company has a market cap of $1.62 billion, a PE ratio of 13.09 and a beta of 2.28.

GigaCloud Technology Company Profile

GigaCloud Technology Inc (NASDAQ:GCT) is a China-based provider of software-as-a-service (SaaS) and cloud computing solutions tailored for cross-border e-commerce. The company’s core offering, its Supply Chain Embedded E-commerce as a Service (SCEaaS) platform, integrates procurement, order management, warehousing, logistics and payment services into a unified cloud-based system. This end-to-end digital supply chain solution is designed to help small and medium-sized Chinese exporters efficiently connect with global buyers without the need to build and maintain their own infrastructure.

Through its modular, subscription-based SaaS model, GigaCloud enables merchants to scale operations on demand and minimize upfront capital expenditures.