GigaCloud Technology (NASDAQ:GCT) Shares Gap Down - Here's What Happened

Key Points

• GigaCloud Technology shares experienced a significant decline, opening at $29.54 after closing at $31.03, with the latest price at $28.27.
• Analysts upgraded GigaCloud Technology from a "strong sell" to a "hold" rating, while Lake Street Capital raised their price target from $26.00 to $33.00. The average price target is now $24.00.
• The company reported earnings of $0.91 per share for the last quarter, significantly beating expectations, and announced plans for a share buyback program amid signs of stock undervaluation.

Shares of GigaCloud Technology Inc. (NASDAQ:GCT - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $31.03, but opened at $29.54. GigaCloud Technology shares last traded at $28.27, with a volume of 593,757 shares.

Analyst Ratings Changes

Several analysts have commented on GCT shares. Zacks Research upgraded shares of GigaCloud Technology from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 19th. Lake Street Capital upped their target price on shares of GigaCloud Technology from $26.00 to $33.00 and gave the company a "buy" rating in a research report on Friday, August 8th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, GigaCloud Technology presently has an average rating of "Hold" and an average price target of $24.00.

GigaCloud Technology Trading Down 10.7%

The firm's 50-day moving average price is $23.11 and its 200-day moving average price is $18.49. The stock has a market capitalization of $1.04 billion, a PE ratio of 8.31 and a beta of 2.36.

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

GigaCloud Technology announced that its board has authorized a share buyback program on Monday, August 18th that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the company to purchase shares of its stock through open market purchases. Shares repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

Insiders Place Their Bets

In related news, insider Marshall Bernes sold 16,000 shares of the 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 transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 24.71% of the stock is owned by company insiders.

Institutional Trading of GigaCloud Technology

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Ameritas Investment Partners Inc. raised its position in GigaCloud Technology by 17.6% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 2,705 shares of the company's stock worth $54,000 after purchasing an additional 405 shares during the period. Tower Research Capital LLC TRC grew its stake in GigaCloud Technology by 25.6% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,372 shares of the company's stock worth $47,000 after acquiring an additional 483 shares in the last quarter. Stratos Wealth Partners LTD. grew its stake in GigaCloud Technology by 5.6% in the 2nd quarter. Stratos Wealth Partners LTD. now owns 10,945 shares of the company's stock worth $217,000 after acquiring an additional 585 shares in the last quarter. Principal Financial Group Inc. grew its stake in GigaCloud Technology by 1.4% in the 1st quarter. Principal Financial Group Inc. now owns 74,234 shares of the company's stock worth $1,054,000 after acquiring an additional 1,028 shares in the last quarter. Finally, Mariner LLC grew its stake in GigaCloud Technology by 10.5% in the 4th quarter. Mariner LLC now owns 11,066 shares of the company's stock worth $205,000 after acquiring an additional 1,056 shares in the last quarter. 34.94% of the stock is owned by hedge funds and other institutional investors.

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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