GigaCloud Technology (NASDAQ:GCT) Shares Down 5.6% - Time to Sell?

Key Points

• GigaCloud Technology Inc.'s share price decreased by 5.6%, reaching a low of $28.10, with trading volume declining 25% from the average.
• Analysts' sentiment varies, with Zacks Research upgrading the rating to "hold," while Lake Street Capital set a new target price of $33.00 giving it a "buy" rating.
• The company reported a $0.91 EPS for the last quarter, surpassing estimates, and announced a share buyback program reflecting confidence in its stock value.

GigaCloud Technology Inc. (NASDAQ:GCT - Get Free Report)'s share price traded down 5.6% during trading on Wednesday . The company traded as low as $28.10 and last traded at $28.18. 706,058 shares traded hands during mid-day trading, a decline of 25% from the average session volume of 941,579 shares. The stock had previously closed at $29.86.

Wall Street Analysts Forecast Growth

Several analysts have commented on GCT shares. Zacks Research raised GigaCloud Technology from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 19th. Lake Street Capital boosted their target price on shares of GigaCloud Technology from $26.00 to $33.00 and gave the stock a "buy" rating in a research report on Friday, August 8th. Finally, Wall Street Zen lowered shares of GigaCloud Technology from a "buy" rating to a "hold" rating in a research report on Sunday. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, GigaCloud Technology currently has a consensus rating of "Hold" and a consensus price target of $24.00.

GigaCloud Technology Stock Performance

The business has a fifty day simple moving average of $25.04 and a 200 day simple moving average of $19.07. The stock has a market cap of $1.06 billion, a price-to-earnings ratio of 8.46 and a beta of 2.37.

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

GigaCloud Technology announced that its Board of Directors has initiated a share buyback program on Monday, August 18th that permits the company to buyback $0.00 in shares. This buyback authorization permits the company to buy shares of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board believes its shares are undervalued.

Insider Activity

In other news, insider Marshall Bernes sold 16,000 shares of the business's stock in a transaction dated Wednesday, August 20th. The stock was sold at an average price of $31.29, for a total transaction of $500,640.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 24.71% of the company's stock.

Institutional Trading of GigaCloud Technology

A number of institutional investors have recently modified their holdings of the company. Thrivent Financial for Lutherans purchased a new stake in shares of GigaCloud Technology in the second quarter worth about $847,000. Tower Research Capital LLC TRC boosted its position in shares of GigaCloud Technology by 25.6% in the second quarter. Tower Research Capital LLC TRC now owns 2,372 shares of the company's stock worth $47,000 after buying an additional 483 shares during the period. BNP Paribas Financial Markets boosted its position in shares of GigaCloud Technology by 80.0% in the second quarter. BNP Paribas Financial Markets now owns 14,945 shares of the company's stock worth $296,000 after buying an additional 6,643 shares during the period. Bridgeway Capital Management LLC boosted its position in shares of GigaCloud Technology by 0.8% in the second quarter. Bridgeway Capital Management LLC now owns 380,656 shares of the company's stock worth $7,529,000 after buying an additional 3,023 shares during the period. Finally, Ameriprise Financial Inc. boosted its position in shares of GigaCloud Technology by 13.9% in the second quarter. Ameriprise Financial Inc. now owns 90,238 shares of the company's stock worth $1,787,000 after buying an additional 11,034 shares during the period. 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.

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