GigaCloud Technology (NASDAQ:GCT) Shares Up 7.9% - Here's Why

Key Points

• GigaCloud Technology's stock price rose by 7.9%, reaching a last traded price of $29.74, with trading volume increasing by 73% compared to the average.
• Analysts have given mixed reviews with Zacks upgrading it to a hold and Lake Street Capital raising the price target to $33.00 while maintaining a buy rating.
• The company reported $0.91 earnings per share for the last quarter, significantly exceeding expectations, and announced a stock buyback program indicating confidence in its stock's value.

GigaCloud Technology Inc. (NASDAQ:GCT - Get Free Report)'s stock price shot up 7.9% on Tuesday . The company traded as high as $29.19 and last traded at $29.74. 1,630,641 shares were traded during trading, an increase of 73% from the average session volume of 941,273 shares. The stock had previously closed at $27.57.

Analysts Set New Price Targets

A number of research firms recently weighed in on GCT. Zacks Research raised shares of GigaCloud Technology from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 19th. Wall Street Zen cut shares of GigaCloud Technology from a "buy" rating to a "hold" rating in a research report on Sunday. Finally, Lake Street Capital raised their price target 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 investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $24.00.

GigaCloud Technology Stock Performance

The firm has a market capitalization of $1.12 billion, a PE ratio of 8.97 and a beta of 2.37. The company's 50-day moving average price is $24.84 and its 200-day moving average price is $18.99.

GigaCloud Technology (NASDAQ:GCT - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported $0.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.46 by $0.45. The business had revenue of $322.61 million during 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 company's revenue for the quarter was up 3.8% on a year-over-year basis. During the same period in the previous year, the company earned $1.03 EPS. GigaCloud Technology has set its Q3 2025 guidance at EPS. As a group, analysts anticipate that GigaCloud Technology Inc. will post 3.1 earnings per share for the current year.

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

Insider Buying and Selling

In related news, insider Marshall Bernes sold 16,000 shares of GigaCloud Technology stock in a transaction on Wednesday, August 20th. The shares were sold at an average price of $31.29, for a total transaction of $500,640.00. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. 24.71% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On GigaCloud Technology

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Ameritas Advisory Services LLC acquired a new stake in GigaCloud Technology during the 2nd quarter worth $35,000. CWM LLC increased its stake in GigaCloud Technology by 319.8% in the first quarter. CWM LLC now owns 2,821 shares of the company's stock valued at $40,000 after purchasing an additional 2,149 shares during the period. Tower Research Capital LLC TRC increased its stake in GigaCloud Technology by 25.6% in the second quarter. Tower Research Capital LLC TRC now owns 2,372 shares of the company's stock valued at $47,000 after purchasing an additional 483 shares during the period. Ameritas Investment Partners Inc. increased its stake in GigaCloud Technology by 17.6% in the second quarter. Ameritas Investment Partners Inc. now owns 2,705 shares of the company's stock valued at $54,000 after purchasing an additional 405 shares during the period. Finally, Russell Investments Group Ltd. increased its stake in GigaCloud Technology by 724.7% in the first quarter. Russell Investments Group Ltd. now owns 4,148 shares of the company's stock valued at $59,000 after purchasing an additional 3,645 shares during the period. 34.94% of the stock is currently owned by institutional investors and hedge funds.

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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