EL MONTE, CA—Xin Wan, Chief Technology Officer of GigaCloud Technology Inc (NASDAQ:GCT), has recently sold a significant portion of the company's Class A Ordinary Shares. According to a recent SEC filing, Wan disposed of shares valued at approximately $1.42 million. The company, currently valued at $818 million, trades at a modest P/E ratio of 8.8x and has demonstrated strong profitability with a return on equity of 40% over the last twelve months.
The transactions, executed on December 16 and 17, 2024, involved the sale of 69,534 shares at prices ranging from $20.05 to $21.12 per share. These sales were carried out under pre-established trading plans, as indicated in the filing. The stock, which has experienced significant volatility, is currently trading near $19.70, down about 8% over the past week and 35% over the last six months.
Following these transactions, Wan holds 466 shares directly through Dongsi Tou Tiao Limited, a company incorporated in the British Virgin Islands. Additionally, Faithful Winner Holdings Ltd, where Wan is the sole shareholder and director, retains ownership of 807,540 shares. InvestingPro analysis reveals the company maintains strong financial health with a current ratio of 2.13, indicating solid liquidity, and is currently trading near its Fair Value.
These transactions reflect Wan's ongoing management of his holdings in GigaCloud Technology, a company known for its retail catalog and mail-order services. The company has maintained robust operations with an EBITDA of $152 million in the last twelve months.
In other recent news, GigaCloud Technology reported a surge in Q3 2024 earnings with record highs in net income and adjusted EBITDA. The company's Gross Merchandise Volume (GMV) and active third-party sellers also saw substantial year-over-year increases. Despite industry challenges like higher procurement costs and potential margin impacts from holiday shipping expenses, GigaCloud maintains a positive outlook, backed by strategic acquisitions and supply chain diversification.
The company recently authorized a $46 million share repurchase program, and revenues from Europe experienced a substantial increase in Q3. GigaCloud also projects Q4 revenues between $275 million and $290 million. The company anticipates breaking even with Noble House by the end of 2024 and is exploring strategic M&A opportunities to expand its European presence.
In other recent developments, GigaCloud Technology announced the appointment of Marshall Bernes to its Board of Directors, succeeding Frank Hurst Lin, who retired after nearly 18 years of service. Bernes, currently leading GigaCloud's BaaS Program, is the founder and former CEO of Noble House Home Furnishings LLC, and his addition to the Board is expected to bring valuable expertise to the company's strategic direction. These are the highlights from recent news items.
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