GigaCloud Technology (NASDAQ:GCT) Shares Gap Up After Earnings Beat

Key Points

• GigaCloud Technology reported a quarterly earnings per share (EPS) of $0.91, significantly exceeding analysts' expectations of $0.46, and achieved a revenue of $322.61 million, surpassing the consensus estimate of $290.08 million.
• The company’s share price increased from $22.15 to $25.26 upon the earnings announcement, closing at $26.11 with traded volume of 1,313,522 shares.
• Institutional investors have shown increased interest in GigaCloud Technology, with 34.94% of the stock owned by hedge funds and institutions following significant stake increases by firms like JPMorgan Chase & Co. and Allspring Global Investments.

Shares of GigaCloud Technology Inc. (NASDAQ:GCT - Get Free Report) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $22.15, but opened at $25.26. GigaCloud Technology shares last traded at $26.11, with a volume of 1,313,522 shares trading hands.

The company reported $0.91 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.46 by $0.45. GigaCloud Technology had a net margin of 11.17% and a return on equity of 32.83%. The company had revenue of $322.61 million for the quarter, compared to the consensus estimate of $290.08 million. During the same period in the prior year, the company posted $1.03 EPS. The company's revenue was up 3.8% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

Separately, 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.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Ameritas Advisory Services LLC acquired a new stake in shares of GigaCloud Technology in the 2nd quarter valued at approximately $35,000. CWM LLC raised its position in shares of GigaCloud Technology by 319.8% in the 1st quarter. CWM LLC now owns 2,821 shares of the company's stock valued at $40,000 after acquiring an additional 2,149 shares during the period. Russell Investments Group Ltd. raised its position in shares of GigaCloud Technology by 724.7% in the 1st quarter. Russell Investments Group Ltd. now owns 4,148 shares of the company's stock valued at $59,000 after acquiring an additional 3,645 shares during the period. Jones Financial Companies Lllp raised its position in shares of GigaCloud Technology by 2,444.8% in the 1st quarter. Jones Financial Companies Lllp now owns 4,199 shares of the company's stock valued at $60,000 after acquiring an additional 4,034 shares during the period. Finally, Heck Capital Advisors LLC acquired a new stake in shares of GigaCloud Technology in the 4th quarter valued at approximately $79,000. 34.94% of the stock is currently owned by institutional investors and hedge funds.

GigaCloud Technology Stock Performance

The firm has a market capitalization of $1.10 billion, a price-to-earnings ratio of 8.68 and a beta of 2.36. The business's 50-day moving average is $20.54 and its two-hundred day moving average is $17.77.

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.