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

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 before the market opened 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 changing hands.

Analyst Upgrades and Downgrades

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

GigaCloud Technology Stock Up 1.3%

The stock has a market capitalization of $997.02 million, a PE ratio of 7.95 and a beta of 2.36. The company has a 50-day moving average of $23.98 and a 200 day moving average of $18.74.

GigaCloud Technology (NASDAQ:GCT - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported $0.91 EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts' expectations of $290.08 million. During the same period in the previous year, the business earned $1.03 earnings per share. The firm's revenue for the quarter was up 3.8% on a year-over-year basis. GigaCloud Technology has set its Q3 2025 guidance at EPS. As a group, equities analysts predict that GigaCloud Technology Inc. will post 3.1 EPS for the current fiscal year.

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

Insider Activity at GigaCloud Technology

In related news, insider Marshall Bernes sold 16,000 shares of the business's stock in a transaction that occurred on 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 can be accessed through this hyperlink. Insiders own 24.71% of the company's stock.

Institutional Trading of GigaCloud Technology

Several large investors have recently made changes to their positions in GCT. Geode Capital Management LLC grew its holdings in GigaCloud Technology by 9.1% in the 2nd quarter. Geode Capital Management LLC now owns 630,805 shares of the company's stock valued at $12,479,000 after buying an additional 52,415 shares in the last quarter. Nuveen LLC purchased a new stake in GigaCloud Technology in the 1st quarter valued at $6,502,000. Nuveen Asset Management LLC grew its holdings in GigaCloud Technology by 37.1% in the 4th quarter. Nuveen Asset Management LLC now owns 409,787 shares of the company's stock valued at $7,589,000 after buying an additional 110,804 shares in the last quarter. Franklin Resources Inc. grew its holdings in GigaCloud Technology by 1.0% in the 2nd quarter. Franklin Resources Inc. now owns 407,960 shares of the company's stock valued at $8,069,000 after buying an additional 4,163 shares in the last quarter. Finally, Bridgeway Capital Management LLC grew its holdings in GigaCloud Technology by 0.8% in the 2nd quarter. Bridgeway Capital Management LLC now owns 380,656 shares of the company's stock valued at $7,529,000 after buying an additional 3,023 shares in the last quarter. 34.94% of the stock is currently 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.