Marshall Bernes, a program head at Gigacloud Technology (GCT), recently bought 5,000 shares. The buy increased his position by 9%, and came to a total cost of $87,500.
This marks the first insider buy at the company over the past two years. There have been a few dozen insider sales over the past few years, including sales from the company CEO and a director, who each hold more than 10% of outstanding shares.
Overall, Gigacloud Technology insiders own 13.6% of shares.
The large-parcel e-commerce software company is down 9% over the past year. Concerns over global supply chains and consumer spending on large items like furniture have weighed on prices.
However, Gigacloud has performed well operationally. Revenues surged 70% in 2024, and overall earnings increased 68%.
If Gigacloud can continue to perform well and expand its profit margins from its current level near 12%, shares could be positioned to trend higher in time.
Action to take: Shares seem to be trading near the lower end of a trading range, and investors may like shares as a speculation in the low $20 area. At those prices, Gigacloud trades at less than 7 times earnings.
As a smaller and growth-focused company, Gigacloud does not pay a dividend yet.
For traders, the June $25 call options, last trading for about $2.50, could see mid-to-high double-digit returns if shares are at the lower end of a trading range and move higher in the months ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.