GigaCloud Technology (NASDAQ:GCT) Downgraded to Hold Rating by Zacks Research

Key Points

• Zacks Research downgraded GigaCloud Technology (NASDAQ:GCT) from a "strong-buy" to a "hold," while the analyst consensus remains a "Moderate Buy" with a $33.00 target price.
• GigaCloud beat expectations for the quarter, reporting EPS $1.24 versus $0.87 estimated and revenue of $359.5M, driving the stock higher (shares were up about 6.8%) and leaving the company with a market cap near $1.65B.
• There has been notable insider selling recently: the CTO sold 100,000 shares and the CEO sold 32,481 shares, with insiders disposing of 598,090 shares worth roughly $25.7M over the last 90 days (insiders still own ~24.7%).

GigaCloud Technology (NASDAQ:GCT - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Tuesday,Zacks.com reports.

Several other analysts also recently issued reports on GCT. Weiss Ratings restated a "buy (b-)" rating on shares of GigaCloud Technology in a research note on Friday, April 24th. Wall Street Zen upgraded GigaCloud Technology from a "buy" rating to a "strong-buy" rating in a research note on Saturday, February 28th. Two equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $33.00.

GigaCloud Technology Trading Up 6.8%

Shares of NASDAQ GCT opened at $44.99 on Tuesday. GigaCloud Technology has a 12 month low of $13.57 and a 12 month high of $51.86. The stock has a 50 day moving average of $44.00 and a 200-day moving average of $39.10. The company has a market capitalization of $1.65 billion, a P/E ratio of 12.43 and a beta of 1.83.

GigaCloud Technology (NASDAQ:GCT - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $1.24 EPS for the quarter, topping the consensus estimate of $0.87 by $0.37. GigaCloud Technology had a return on equity of 30.74% and a net margin of 10.65%.The company had revenue of $359.49 million during the quarter, compared to the consensus estimate of $342.58 million. Analysts predict that GigaCloud Technology will post 4.1 EPS for the current fiscal year.

Insider Buying and Selling at GigaCloud Technology

In other GigaCloud Technology news, CTO Xin Wan sold 100,000 shares of GigaCloud Technology stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $43.38, for a total value of $4,338,000.00. Following the completion of the transaction, the chief technology officer directly owned 717,540 shares of the company's stock, valued at $31,126,885.20. The trade was a 12.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Lei Wu sold 32,481 shares of GigaCloud Technology stock in a transaction on Friday, March 20th. The shares were sold at an average price of $40.41, for a total value of $1,312,557.21. Following the completion of the transaction, the chief executive officer directly owned 60,000 shares of the company's stock, valued at $2,424,600. This represents a 35.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 598,090 shares of company stock valued at $25,666,400 over the last 90 days. 24.71% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On GigaCloud Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Jones Financial Companies Lllp raised its holdings 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 in the last quarter. Quarry LP acquired a new position in shares of GigaCloud Technology during the 3rd quarter worth $29,000. Larson Financial Group LLC acquired a new position in shares of GigaCloud Technology during the 3rd quarter worth $30,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of GigaCloud Technology during the 3rd quarter worth $30,000. Finally, Wealth Enhancement Advisory Services LLC acquired a new position in shares of GigaCloud Technology during the 4th quarter worth $44,000. 34.94% of the stock is owned by institutional investors and hedge funds.

About GigaCloud Technology

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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