Executives at DCM, a venture capital firm, have sold a significant number of shares in GigaCloud Technology Inc (NASDAQ:GCT), amounting to over $8.8 million. The transactions, which took place on June 11 and June 12, 2024, involved the sale of Class A ordinary shares at prices ranging from $32.482 to $33.8958 per share.
The sales were conducted by several entities associated with DCM, including DCM IV L P, DCM Affiliates Fund IV L P, DCM IX, L.P., and DCM Affiliates Fund IX, L.P., as well as directors Frank Hurst Lin and Matthew C. Bonner. On June 11, a total of 175,178 shares were sold, with 166,837 shares sold at an average price of $33.1223 and 8,341 shares at an average price of $33.8958. The following day, on June 12, the executives sold an additional 91,781 shares; 79,599 shares were sold at an average price of $32.482 and 12,182 shares at an average price of $33.5665.
The filings indicate that Frank Hurst Lin and Matthew C. Bonner, both directors and ten percent owners, along with the aforementioned DCM entities, have indirect ownership of the shares through various partnerships and investment management arrangements. The documents also note that all parties involved disclaim beneficial ownership of the reported securities, except to the extent of their pecuniary interest.
This sale has brought the total number of shares owned by the selling entities to 4,978,108 following the transactions. The shares are held indirectly by the DCM entities, with the reporting owners having sole voting and investment power over these securities.
These transactions were disclosed in compliance with SEC regulations, which mandate the reporting of changes in company ownership by directors, officers, and principal shareholders. The information provided in the SEC Form 4 filing offers investors insight into the actions of significant shareholders and company insiders.
In other recent news, GigaCloud Technology Inc has reported a robust growth in the first quarter of 2024, with total revenues reaching $251 million and a net income of $27 million. The company's marketplace Gross Merchandise Value (GMV) saw a 64% increase, with the addition of 263 new sellers and 1,238 new buyers. For the next quarter, GigaCloud expects revenues to be between $265 million and $280 million.
In other developments, the technology firm has publicly refuted allegations from a report by short-selling firm Grizzly Research LLC. GigaCloud clarified that the third-party data cited by Grizzly Research only represents search engine performance and not the total website traffic. The company's own data for April 2024 showed approximately 130,000 total visits and 11,000 unique visitors, aligning with its business-to-business platform.
GigaCloud also addressed allegations regarding undisclosed related party transactions, affirming that all such transactions are disclosed as required by SEC regulations. The company warned investors about the short-seller's admission that its report contains views not stated as facts and urged investors to consider official company materials filed with the SEC. These are recent developments in the company's ongoing operations.
InvestingPro Insights
In light of the recent share sales by DCM executives, investors in GigaCloud Technology Inc (NASDAQ:GCT) may find the following data and tips from InvestingPro particularly insightful. With a market capitalization of $1.33 billion and a strong revenue growth of 63.65% over the last twelve months as of Q1 2024, GCT demonstrates a robust financial performance. Additionally, the company has experienced a substantial 139.2% price total return over the last six months, highlighting a significant uptick in its stock price.
InvestingPro Tips suggest that analysts are optimistic about GCT's sales growth in the current year, which could be a driving force behind the stock's recent performance. Moreover, the company has been profitable over the last twelve months, with an adjusted P/E ratio of 12.09, which may attract investors looking for earnings stability.
For those considering a deeper dive into GCT's potential, InvestingPro offers additional insights, with a total of 12 InvestingPro Tips available at https://www.investing.com/pro/GCT. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. These tips and data points can provide valuable context as you assess the implications of the insider transactions and the company's future prospects.
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