GigaCloud Technology Inc (NASDAQ: GCT) has seen a decline in its stock price by -5.84 in relation to its previous close of 26.79. However, the company has experienced a 2.63% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2024-10-21 that GigaCloud Technology is a strong buy due to robust platform dynamics and significant margin expansion potential, despite recent high short interest affecting stock performance. The company’s 1P and 3P business models, particularly the latter, drive substantial revenue growth through fees and commissions from third-party merchants. GCT’s valuation multiple is highly undervalued at 7x 2025 earnings, with a projected 28% earnings growth, suggesting a potential 44% upside.
Is It Worth Investing in GigaCloud Technology Inc (NASDAQ: GCT) Right Now?
The price-to-earnings ratio for GigaCloud Technology Inc (NASDAQ: GCT) is 9.08x, which is above its average ratio. Moreover, the 36-month beta value for GCT is 1.76. Analysts have varying opinions on the stock, with 6 analysts rating it as a “buy,” 0 as “overweight,” 0 as “hold,” and 0 as “sell.”
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The public float for GCT is 21.50M and currently, short sellers hold a 32.08% of that float. On October 23, 2024, GCT’s average trading volume was 1.50M shares.
GCT’s Market Performance
GCT stock saw an increase of 2.63% in the past week, with a monthly gain of 34.04% and a quarterly increase of -5.80%. The volatility ratio for the week is 5.68%, and the volatility levels for the last 30 days are 7.16% for GigaCloud Technology Inc (GCT). The simple moving average for the last 20 days is 0.68% for GCT stock, with a simple moving average of -11.48% for the last 200 days.
Analysts’ Opinion of GCT
Many brokerage firms have already submitted their reports for GCT stocks, with Lake Street repeating the rating for GCT by listing it as a “Buy.” The predicted price for GCT in the upcoming period, according to Lake Street is $50 based on the research report published on July 29, 2024 of the current year 2024.
Maxim Group, on the other hand, stated in their research note that they expect to see GCT reach a price target of $69. The rating they have provided for GCT stocks is “Buy” according to the report published on May 22nd, 2024.
ROTH MKM gave a rating of “Buy” to GCT, setting the target price at $13 in the report published on June 16th of the previous year.
GCT Trading at 15.48% from the 50-Day Moving Average
After a stumble in the market that brought GCT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -44.16% of loss for the given period.
Volatility was left at 7.16%, however, over the last 30 days, the volatility rate increased by 5.68%, as shares surge +28.11% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +8.54% upper at present.
During the last 5 trading sessions, GCT rose by +2.31%, which changed the moving average for the period of 200-days by +14.31% in comparison to the 20-day moving average, which settled at $25.05. In addition, GigaCloud Technology Inc saw 37.89% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at GCT starting from Lin Frank Hurst, who sale 149,693 shares at the price of $30.19 back on Jun 28 ’24. After this action, Lin Frank Hurst now owns 4,069,889 shares of GigaCloud Technology Inc, valued at $4,518,733 using the latest closing price.
SCHROCK IMAN AJ, the President of GigaCloud Technology Inc, sale 5,000 shares at $30.21 during a trade that took place back on Jun 27 ’24, which means that SCHROCK IMAN AJ is holding 25,000 shares at $151,061 based on the most recent closing price.
Stock Fundamentals for GCT
Current profitability levels for the company are sitting at:
- 0.14 for the present operating margin
- 0.27 for the gross margin
The net margin for GigaCloud Technology Inc stands at 0.12. The total capital return value is set at 0.17. Equity return is now at value 38.66, with 15.09 for asset returns.
Based on GigaCloud Technology Inc (GCT), the company’s capital structure generated 0.59 points at debt to capital in total, while cash flow to debt ratio is standing at 0.25. The debt to equity ratio resting at 1.44. The interest coverage ratio of the stock is 290.48.
Currently, EBITDA for the company is 116.87 million with net debt to EBITDA at 2.33. When we switch over and look at the enterprise to sales, we see a ratio of 1.39. The receivables turnover for the company is 14.15for trailing twelve months and the total asset turnover is 0.93. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.98.
Conclusion
To wrap up, the performance of GigaCloud Technology Inc (GCT) has been better in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
