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

GigaCloud Technology Inc. (NASDAQ:GCT - Get Free Report) gapped up before the market opened on Monday following a stronger than expected earnings report. 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 changing hands.

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

GigaCloud Technology declared that its board has authorized a stock repurchase plan on Wednesday, April 2nd that permits the company to repurchase $16.00 million in shares. This repurchase authorization permits the company to repurchase up to 2.7% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its shares are undervalued.

Analysts Set New Price Targets

Several equities analysts recently weighed in on GCT shares. Roth Mkm cut shares of GigaCloud Technology from a "buy" rating to a "neutral" rating and decreased their target price for the company from $32.00 to $15.00 in a research note on Tuesday, March 4th. Lake Street Capital decreased their target price on shares of GigaCloud Technology from $50.00 to $26.00 and set a "buy" rating for the company in a research note on Tuesday, March 4th. Finally, Roth Capital cut shares of GigaCloud Technology from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 4th. Two analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $36.67.

Institutional Trading of GigaCloud Technology

A number of hedge funds have recently modified their holdings of the stock. Nuveen LLC acquired a new stake in shares of GigaCloud Technology during the 1st quarter worth about $6,502,000. Nuveen Asset Management LLC lifted its stake in shares of GigaCloud Technology by 37.1% during the 4th quarter. Nuveen Asset Management LLC now owns 409,787 shares of the company's stock worth $7,589,000 after buying an additional 110,804 shares during the last quarter. Bridgeway Capital Management LLC lifted its stake in shares of GigaCloud Technology by 1.1% during the 1st quarter. Bridgeway Capital Management LLC now owns 377,633 shares of the company's stock worth $5,362,000 after buying an additional 4,034 shares during the last quarter. Pacer Advisors Inc. acquired a new stake in GigaCloud Technology in the 1st quarter worth about $4,806,000. Finally, Oasis Management Co Ltd. acquired a new stake in GigaCloud Technology in the 4th quarter worth about $5,550,000. Institutional investors and hedge funds own 34.94% of the company's stock.

GigaCloud Technology Trading Up 3.7%

The firm's 50 day simple moving average is $14.06 and its two-hundred day simple moving average is $18.29. The firm has a market cap 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.