GigaCloud Technology (NASDAQ:GCT) Sees Large Volume Increase After Strong Earnings

GigaCloud Technology Inc. (NASDAQ:GCT - Get Free Report) saw unusually-high trading volume on Tuesday following a better than expected earnings announcement. Approximately 739,650 shares traded hands during mid-day trading, a decline of 26% from the previous session's volume of 1,005,178 shares.The stock last traded at $17.64 and had previously closed at $15.90.

The company reported $0.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.46 by $0.22. GigaCloud Technology had a net margin of 11.75% and a return on equity of 40.32%. The firm had revenue of $271.91 million during the quarter, compared to analysts' expectations of $259.80 million. During the same period last year, the business earned $0.84 earnings per share. GigaCloud Technology's revenue was up 8.3% compared to the same quarter last year.

GigaCloud Technology announced that its Board of Directors has initiated a share buyback program on Wednesday, April 2nd that permits the company to buyback $16.00 million in shares. This buyback authorization permits the company to reacquire up to 2.7% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. Lake Street Capital cut their price target on shares of GigaCloud Technology from $50.00 to $26.00 and set a "buy" rating for the company in a report on Tuesday, March 4th. Roth Mkm downgraded shares of GigaCloud Technology from a "buy" rating to a "neutral" rating and cut their price target for the stock from $32.00 to $15.00 in a report on Tuesday, March 4th. Finally, Roth Capital downgraded shares of GigaCloud Technology from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 4th. Two analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat, GigaCloud Technology has a consensus rating of "Moderate Buy" and a consensus target price of $36.67.

Institutional Trading of GigaCloud Technology

Several institutional investors have recently added to or reduced their stakes in the stock. Lake Hills Wealth Management LLC acquired a new position in shares of GigaCloud Technology in the fourth quarter worth $332,000. JPMorgan Chase & Co. grew its stake in shares of GigaCloud Technology by 24.7% in the fourth quarter. JPMorgan Chase & Co. now owns 125,552 shares of the company's stock worth $2,325,000 after acquiring an additional 24,866 shares in the last quarter. Victory Capital Management Inc. acquired a new position in shares of GigaCloud Technology in the fourth quarter worth $1,304,000. Raymond James Financial Inc. acquired a new position in shares of GigaCloud Technology in the fourth quarter worth $349,000. Finally, KLP Kapitalforvaltning AS acquired a new position in shares of GigaCloud Technology in the fourth quarter worth $89,000. Institutional investors and hedge funds own 34.94% of the company's stock.

GigaCloud Technology Price Performance

The company's 50 day simple moving average is $14.06 and its 200 day simple moving average is $18.29. The firm has a market cap of $756.45 million, a price-to-earnings ratio of 5.97 and a beta of 2.16.

GigaCloud Technology Company Profile

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.