GigaCloud Technology (NASDAQ:GCT) Hits New 12-Month Low on Disappointing Earnings

Shares of GigaCloud Technology Inc. (NASDAQ:GCT) reached a new 52-week low during mid-day trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $13.60 and last traded at $15.54, with a volume of 855087 shares changing hands. The stock had previously closed at $16.01.

The company reported $0.76 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.90 by ($0.14). The company had revenue of $295.78 million during the quarter, compared to analysts’ expectations of $290.00 million. GigaCloud Technology had a net margin of 11.75% and a return on equity of 40.32%. During the same quarter in the prior year, the company earned $0.87 earnings per share.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on GCT shares. Roth Capital cut GigaCloud Technology from a “strong-buy” rating to a “hold” rating in a report on Tuesday. Lake Street Capital decreased their price objective on shares of GigaCloud Technology from $50.00 to $26.00 and set a “buy” rating for the company in a research report on Tuesday. Finally, Roth Mkm lowered shares of GigaCloud Technology from a “buy” rating to a “neutral” rating and dropped their price target for the stock from $32.00 to $15.00 in a research note on Tuesday. Two investment analysts have rated the stock with a hold rating, two have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $36.67.

Insider Activity at GigaCloud Technology

In other GigaCloud Technology news, major shareholder Frank Hurst Lin sold 2,663,076 shares of the firm’s stock in a transaction dated Friday, December 6th. The shares were sold at an average price of $21.80, for a total transaction of $58,055,056.80. Following the transaction, the insider now owns 1,406,813 shares of the company’s stock, valued at approximately $30,668,523.40. This trade represents a 65.43 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Marshall Bernes bought 5,000 shares of the company’s stock in a transaction that occurred on Friday, December 27th. The shares were purchased at an average cost of $17.50 per share, for a total transaction of $87,500.00. Following the acquisition, the insider now owns 45,000 shares of the company’s stock, valued at $787,500. This represents a 12.50 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders sold a total of 2,811,979 shares of company stock valued at $61,233,745 in the last quarter. Insiders own 43.00% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Harvest Fund Management Co. Ltd acquired a new position in shares of GigaCloud Technology in the 3rd quarter valued at $6,956,000. Oasis Management Co Ltd. bought a new position in shares of GigaCloud Technology in the 4th quarter valued at approximately $5,550,000. Geode Capital Management LLC boosted its holdings in shares of GigaCloud Technology by 90.7% during the 3rd quarter. Geode Capital Management LLC now owns 577,108 shares of the company’s stock worth $13,265,000 after buying an additional 274,506 shares during the period. Jane Street Group LLC grew its position in shares of GigaCloud Technology by 1,599.5% in the fourth quarter. Jane Street Group LLC now owns 236,202 shares of the company’s stock valued at $4,374,000 after purchasing an additional 222,304 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. grew its holdings in GigaCloud Technology by 279.5% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 214,569 shares of the company’s stock valued at $4,931,000 after buying an additional 158,033 shares during the last quarter. 34.94% of the stock is owned by institutional investors and hedge funds.

GigaCloud Technology Stock Up 6.1 %

The stock’s 50-day moving average is $19.44 and its 200-day moving average is $21.23. The firm has a market cap of $674.81 million, a P/E ratio of 5.21 and a beta of 1.94.

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.