GigaCloud Technology Inc (NASDAQ: GCT)’s stock price has plunge by -4.66relation to previous closing price of 21.99. Nevertheless, the company has seen a -17.20% plunge in its stock price over the last five trading sessions. seekingalpha.com reported 2024-12-09 that GigaCloud Technology investors endured a debilitating bear market, but the worst is likely over. Investors are increasingly concerned with tariffs hurting its China supply chain. Management highlighted that it has diversified its supplier sourcing, although such risks cannot be fully eliminated.
Is It Worth Investing in GigaCloud Technology Inc (NASDAQ: GCT) Right Now?
The price-to-earnings ratio for GigaCloud Technology Inc (NASDAQ: GCT) is above average at 6.62x, Company’s 36-month beta value is 1.78.Analysts have differing opinions on the stock, with 3 analysts rating it as a “buy,” 2 as “overweight,” 0 as “hold,” and 0 as “sell.”
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The public float for GCT is 24.69M, and currently, short sellers hold a 23.11% ratio of that floaft. The average trading volume of GCT on December 11, 2024 was 1.62M shares.
GCT’s Market Performance
GCT stock saw a decrease of -17.20% in the past week, with a monthly decline of -22.06% and a quarterly a decrease of 20.77%. The volatility ratio for the week is 6.23%, and the volatility levels for the last 30 days are 7.80% for GigaCloud Technology Inc (GCT). The simple moving average for the past 20 days is -10.38% for GCT’s stock, with a -25.22% simple moving average for the past 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 -13.57% 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 -53.60% of loss for the given period.
Volatility was left at 7.80%, however, over the last 30 days, the volatility rate increased by 6.23%, as shares sank -10.88% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -17.18% lower at present.
During the last 5 trading sessions, GCT fell by -17.54%, which changed the moving average for the period of 200-days by -40.31% in comparison to the 20-day moving average, which settled at $23.39. In addition, GigaCloud Technology Inc saw 14.59% 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 WAN XIN, who sale 80,000 shares at the price of $22.14 back on Dec 06 ’24. After this action, WAN XIN now owns 867,540 shares of GigaCloud Technology Inc, valued at $1,771,200 using the latest closing price.
DCM AFFILIATES FUND IV LP, the Director of GigaCloud Technology Inc, proposed sale 66,046 shares at $21.80 during a trade that took place back on Dec 05 ’24, which means that DCM AFFILIATES FUND IV LP is holding shares at $1,439,803 based on the most recent closing price.
Stock Fundamentals for GCT
Current profitability levels for the company are sitting at:
- 0.13 for the present operating margin
- 0.26 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 39.85, with 16.27 for asset returns.
Currently, EBITDA for the company is 119.79 million with net debt to EBITDA at 1.78. When we switch over and look at the enterprise to sales, we see a ratio of 1.03. The receivables turnover for the company is 17.75for trailing twelve months and the total asset turnover is 1.03. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.13.
Conclusion
In a nutshell, GigaCloud Technology Inc (GCT) has experienced a mixed performance in recent times. The stock has received mixed “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.
