GigaCloud Technology (NASDAQ:GCT) Shares Gap Up After Better-Than-Expected Earnings

GigaCloud Technology Inc. (NASDAQ:GCT - Get Free Report)'s stock price gapped up before the market opened on Monday following a better than expected earnings announcement. The stock had previously closed at $14.50, but opened at $16.79. GigaCloud Technology shares last traded at $16.08, with a volume of 397,918 shares.

The company reported $0.68 EPS for the quarter, beating analysts' consensus estimates of $0.46 by $0.22. GigaCloud Technology had a return on equity of 40.32% and a net margin of 11.75%. The firm had revenue of $271.91 million for the quarter, compared to analyst estimates of $259.80 million. During the same quarter in the prior year, the firm earned $0.84 earnings per share. GigaCloud Technology's revenue for the quarter was up 8.3% on a year-over-year basis.

GigaCloud Technology announced that its board has approved a stock buyback program on Wednesday, April 2nd that authorizes the company to repurchase $16.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 2.7% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have commented on GCT shares. Roth Capital lowered GigaCloud Technology from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 4th. Lake Street Capital lowered their price objective on GigaCloud Technology from $50.00 to $26.00 and set a "buy" rating on the stock in a research report on Tuesday, March 4th. Finally, Roth Mkm lowered GigaCloud Technology from a "buy" rating to a "neutral" rating and lowered their price objective for the stock from $32.00 to $15.00 in a research report on Tuesday, March 4th. Two analysts have rated the stock with a hold rating, two have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $36.67.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. US Bancorp DE raised its stake in GigaCloud Technology by 200.0% in the 4th quarter. US Bancorp DE now owns 1,500 shares of the company's stock valued at $28,000 after purchasing an additional 1,000 shares during the last quarter. Principal Financial Group Inc. raised 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 valued at $1,054,000 after purchasing an additional 1,028 shares during the last quarter. Mariner LLC raised its stake in GigaCloud Technology by 10.5% in the 4th quarter. Mariner LLC now owns 11,066 shares of the company's stock valued at $205,000 after purchasing an additional 1,056 shares during the last quarter. PFG Investments LLC raised its stake in GigaCloud Technology by 9.4% in the 1st quarter. PFG Investments LLC now owns 16,835 shares of the company's stock valued at $239,000 after purchasing an additional 1,450 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. raised its stake in GigaCloud Technology by 0.8% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 216,198 shares of the company's stock valued at $4,004,000 after purchasing an additional 1,629 shares during the last quarter. 34.94% of the stock is owned by institutional investors and hedge funds.

GigaCloud Technology Stock Performance

The company has a 50 day moving average of $14.06 and a 200 day moving average of $18.34. The stock has a market capitalization 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.