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

GigaCloud Technology Inc. (NASDAQ:GCT)’s stock price gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $35.31, but opened at $42.59. GigaCloud Technology shares last traded at $43.3060, with a volume of 552,416 shares.

The company reported $1.04 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.65 by $0.39. The firm had revenue of $362.75 million for the quarter, compared to the consensus estimate of $332.33 million. GigaCloud Technology had a return on equity of 30.43% and a net margin of 10.62%.The firm’s quarterly revenue was up 22.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.76 EPS.

Wall Street Analyst Weigh In

Several brokerages have issued reports on GCT. Zacks Research downgraded shares of GigaCloud Technology from a “strong-buy” rating to a “hold” rating in a research report on Friday, January 16th. Wall Street Zen upgraded shares of GigaCloud Technology from a “hold” rating to a “buy” rating in a research note on Saturday, December 13th. Finally, Weiss Ratings upgraded GigaCloud Technology from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, January 27th. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, GigaCloud Technology has a consensus rating of “Moderate Buy” and a consensus target price of $24.00.

Insider Buying and Selling at GigaCloud Technology

In other news, CEO Lei Wu sold 20,000 shares of the business’s stock in a transaction dated Thursday, January 22nd. The shares were sold at an average price of $40.78, for a total transaction of $815,600.00. Following the transaction, the chief executive officer directly owned 678,090 shares in the company, valued at $27,652,510.20. The trade was a 2.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Xinyan Hao sold 800 shares of the stock in a transaction dated Friday, December 5th. The stock was sold at an average price of $40.04, for a total transaction of $32,032.00. Following the transaction, the chief operating officer directly owned 357,486 shares of the company’s stock, valued at $14,313,739.44. This represents a 0.22% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 171,910 shares of company stock valued at $7,097,748 in the last 90 days. Company insiders own 24.71% of the company’s stock.

Institutional Trading of GigaCloud Technology

Hedge funds have recently modified their holdings of the business. Royal Bank of Canada boosted its stake in shares of GigaCloud Technology by 91.4% in the first quarter. Royal Bank of Canada now owns 46,638 shares of the company’s stock valued at $661,000 after buying an additional 22,273 shares in the last quarter. AQR Capital Management LLC lifted its holdings in GigaCloud Technology by 355.1% in the first quarter. AQR Capital Management LLC now owns 99,669 shares of the company’s stock valued at $1,415,000 after acquiring an additional 77,769 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of GigaCloud Technology by 34.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 32,230 shares of the company’s stock worth $458,000 after purchasing an additional 8,274 shares in the last quarter. Jones Financial Companies Lllp boosted its position in shares of GigaCloud Technology by 2,444.8% during the 1st quarter. Jones Financial Companies Lllp now owns 4,199 shares of the company’s stock worth $60,000 after purchasing an additional 4,034 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its stake in shares of GigaCloud Technology by 24.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 142,055 shares of the company’s stock worth $2,017,000 after purchasing an additional 28,309 shares during the period. 34.94% of the stock is owned by institutional investors and hedge funds.

GigaCloud Technology Stock Performance

The stock’s fifty day moving average price is $39.22 and its 200-day moving average price is $33.81. The firm has a market cap of $1.62 billion, a PE ratio of 13.09 and a beta of 2.28.

About GigaCloud Technology

GigaCloud Technology Inc (NASDAQ:GCT) is a China-based provider of software-as-a-service (SaaS) and cloud computing solutions tailored for cross-border e-commerce. The company’s core offering, its Supply Chain Embedded E-commerce as a Service (SCEaaS) platform, integrates procurement, order management, warehousing, logistics and payment services into a unified cloud-based system. This end-to-end digital supply chain solution is designed to help small and medium-sized Chinese exporters efficiently connect with global buyers without the need to build and maintain their own infrastructure.

Through its modular, subscription-based SaaS model, GigaCloud enables merchants to scale operations on demand and minimize upfront capital expenditures.