Empowered Funds LLC Sells 140,110 Shares of GigaCloud Technology Inc. $GCT

Key Points

• Empowered Funds LLC cut its GigaCloud Technology stake by 82.4% in the first quarter, selling 140,110 shares and retaining 29,971 shares worth approximately $1.36 million. Institutional investors own about 34.94% of the company.
• GigaCloud reported a strong second quarter: revenue rose 27.6% year over year to $411.6 million and diluted EPS reached $1.16, beating analyst expectations. Gross margin, marketplace GMV, active sellers and buyers also improved.
• Analysts maintain a consensus “Hold” rating after several downgrades, although management issued above-consensus third-quarter revenue guidance and authorized a new $120 million, three-year share-repurchase program.

Empowered Funds LLC reduced its stake in shares of GigaCloud Technology Inc. (NASDAQ:GCT - Free Report) by 82.4% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 29,971 shares of the company's stock after selling 140,110 shares during the quarter. Empowered Funds LLC owned approximately 0.08% of GigaCloud Technology worth $1,360,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Quarry LP purchased a new stake in shares of GigaCloud Technology in the 3rd quarter worth about $29,000. Larson Financial Group LLC purchased a new stake in GigaCloud Technology during the 3rd quarter valued at $30,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of GigaCloud Technology in the 3rd quarter worth $30,000. Wealth Enhancement Advisory Services LLC purchased a new position in shares of GigaCloud Technology in the fourth quarter worth $44,000. Finally, Tower Research Capital LLC TRC lifted its holdings in shares of GigaCloud Technology by 25.6% during the second quarter. Tower Research Capital LLC TRC now owns 2,372 shares of the company's stock valued at $47,000 after purchasing an additional 483 shares in the last quarter. 34.94% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

GCT has been the subject of a number of recent analyst reports. Zacks Research lowered GigaCloud Technology from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 5th. Weiss Ratings downgraded shares of GigaCloud Technology from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, June 8th. Finally, Wall Street Zen downgraded GigaCloud Technology from a "strong-buy" rating to a "buy" rating in a report on Saturday, May 16th. Two research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock currently has a consensus rating of "Hold".

Key Stories Impacting GigaCloud Technology

Here are the key news stories impacting GigaCloud Technology this week:

• Positive Sentiment: Q2 results beat estimates: Revenue rose 27.6% year over year to $411.6 million, above the roughly $380.6 million consensus estimate, while diluted EPS of $1.16 exceeded estimates ranging from $0.85 to $0.90. Net income increased 22.3% to $42.3 million, and adjusted EBITDA climbed 39.5% to $60.4 million. GigaCloud Technology Q2 financial results
• Positive Sentiment: Margins and operating metrics improved: Gross margin expanded to 25.6% from 23.9% a year earlier. Marketplace GMV grew 21.3% to $1.74 billion over the latest 12 months, while third-party seller GMV rose 27.0%; active sellers and buyers increased 26.1% and 17.1%, respectively.
• Positive Sentiment: Guidance topped expectations: GigaCloud forecast third-quarter revenue of $375 million to $400 million, above the approximately $370.7 million analyst consensus, reinforcing expectations for continued growth. GigaCloud Q2 results and guidance
• Positive Sentiment: Buyback expanded: The company authorized a new three-year, $120 million share-repurchase program after buying back approximately $30 million of shares during the quarter and another $18 million after quarter-end. The move signals management’s confidence and could support per-share results. The earnings call also highlighted 66% European GMV growth and the integration of New Classic. GCT earnings call takeaways
• Neutral Sentiment: Key risks remain: Cash, restricted cash and investments declined 9.2% from year-end, partly reflecting acquisitions and repurchases. Net margin edged lower year over year despite higher profit, and reported insider activity included substantial selling with no purchases in the latest six months.

GigaCloud Technology Price Performance

Shares of GCT stock opened at $53.25 on Friday. GigaCloud Technology Inc. has a 1 year low of $24.86 and a 1 year high of $56.27. The firm has a fifty day moving average price of $36.38 and a 200-day moving average price of $39.61. The company has a market cap of $1.96 billion, a price-to-earnings ratio of 12.59 and a beta of 1.65.

GigaCloud Technology (NASDAQ:GCT - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $1.16 EPS for the quarter, topping analysts' consensus estimates of $0.90 by $0.26. GigaCloud Technology had a return on equity of 32.23% and a net margin of 10.65%.The company had revenue of $411.64 million for the quarter, compared to analysts' expectations of $380.63 million. Equities research analysts expect that GigaCloud Technology Inc. will post 4.18 EPS for the current year.

GigaCloud Technology 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.

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