GigaCloud Technology (NASDAQ:GCT) Downgraded by Wall Street Zen to Hold

Key Points

• GigaCloud Technology has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, reflecting a shift in market sentiment regarding the stock.
• Despite the downgrade, Lake Street Capital has increased its price target for GigaCloud shares from $26 to $33, indicating some analysts still see potential upside.
• GigaCloud reported quarterly earnings of $0.91 per share, significantly surpassing the consensus estimate of $0.46, with a revenue of $322.61 million for the quarter, indicating strong performance.

Wall Street Zen cut shares of GigaCloud Technology (NASDAQ:GCT - Free Report) from a buy rating to a hold rating in a research note released on Sunday.

GCT has been the topic of a number of other research reports. Lake Street Capital increased their price objective on GigaCloud Technology from $26.00 to $33.00 and gave the stock a "buy" rating in a report on Friday, August 8th. Zacks Research raised shares of GigaCloud Technology from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 19th. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $24.00.

GigaCloud Technology Trading Up 0.5%

Shares of GCT stock traded up $0.16 on Friday, hitting $29.23. 189,367 shares of the stock were exchanged, compared to its average volume of 942,392. The firm has a market capitalization of $1.10 billion, a PE ratio of 8.77 and a beta of 2.37. GigaCloud Technology has a one year low of $11.17 and a one year high of $34.50. The firm's 50 day moving average is $25.35 and its two-hundred day moving average is $19.21.

GigaCloud Technology (NASDAQ:GCT - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported $0.91 earnings per share for the quarter, topping the consensus estimate of $0.46 by $0.45. The company had revenue of $322.61 million during the quarter, compared to the consensus estimate of $290.08 million. GigaCloud Technology had a return on equity of 32.33% and a net margin of 11.17%.The firm's quarterly revenue was up 3.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.03 EPS. GigaCloud Technology has set its Q3 2025 guidance at EPS. On average, sell-side analysts expect that GigaCloud Technology will post 3.1 earnings per share for the current year.

GigaCloud Technology announced that its board has authorized a stock repurchase plan on Monday, August 18th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the company to reacquire shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In other GigaCloud Technology news, CEO Lei Wu sold 100,000 shares of the firm's stock in a transaction dated Wednesday, September 10th. The stock was sold at an average price of $28.52, for a total value of $2,852,000.00. Following the sale, the chief executive officer owned 60,000 shares of the company's stock, valued at $1,711,200. This trade represents a 62.50% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Marshall Bernes sold 16,000 shares of the firm's stock in a transaction dated Wednesday, August 20th. The shares were sold at an average price of $31.29, for a total value of $500,640.00. The disclosure for this sale can be found here. In the last ninety days, insiders sold 120,000 shares of company stock worth $3,481,720. Insiders own 24.71% of the company's stock.

Institutional Trading of GigaCloud Technology

Several institutional investors and hedge funds have recently modified their holdings of the business. Ameritas Investment Partners Inc. raised its holdings in shares of GigaCloud Technology by 17.6% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 2,705 shares of the company's stock valued at $54,000 after acquiring an additional 405 shares in the last quarter. Tower Research Capital LLC TRC raised its holdings in shares of GigaCloud Technology by 25.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,372 shares of the company's stock valued at $47,000 after buying an additional 483 shares in the last quarter. Stratos Wealth Partners LTD. raised its holdings in shares of GigaCloud Technology by 5.6% during the 2nd quarter. Stratos Wealth Partners LTD. now owns 10,945 shares of the company's stock valued at $217,000 after buying an additional 585 shares in the last quarter. Principal Financial Group Inc. raised its holdings in shares of GigaCloud Technology by 1.4% during the 1st quarter. Principal Financial Group Inc. now owns 74,234 shares of the company's stock valued at $1,054,000 after buying an additional 1,028 shares in the last quarter. Finally, PFG Investments LLC raised its holdings in shares of GigaCloud Technology by 9.4% during the 1st quarter. PFG Investments LLC now owns 16,835 shares of the company's stock valued at $239,000 after buying an additional 1,450 shares in the last quarter. Hedge funds and other institutional investors own 34.94% of the company's stock.

About GigaCloud Technology

GigaCloud Technology Inc provides end-to-end B2B ecommerce solutions for large parcel merchandise in the United States and internationally. The company offers GigaCloud Marketplace integrates product discovery to payments to logistics tools into one easy-to-use platform. Its marketplace connects manufacturers primarily in Asia with resellers in the United States, Asia, and Europe to execute cross-border transactions across furniture, home appliance, fitness equipment, and other large parcel categories.