Between January 20 and January 22, 2026, Lei Wu, the Chief Executive Officer of GigaCloud Technology Inc (NASDAQ:GCT), together with affiliates Shan Lao Hu Tong LLC and Ji Xiang Hu Tong Holdings LTD, sold a combined 20,510 Class A Ordinary Shares through multiple transactions. The aggregate value of these sales was approximately $892,140, with share prices ranging from $40.01 to $41.27.
On the first day of transactions, January 20, a total of 1,700 shares changed hands at an average price of $40.01, with prices fluctuating between $40.00 and $40.13. On January 21, a smaller volume of 210 shares was sold at an average price of $40.26, with individual trade prices spanning $40.13 to $40.39. The final day, January 22, saw two transactions: one disposing of 15,952 shares at a weighted average price of $40.66, prices ranged from $40.12 to $41.10, and another selling 4,048 shares at an average of $41.27, with price points between $41.12 and $41.45.
Post these transactions, the entities maintain indirect ownership of 678,090 Class A Ordinary Shares. Furthermore, they hold 7,276,732 Class B Ordinary Shares, which can be converted to Class A shares without cost at any given time. These share sales were conducted pursuant to pre-arranged 10b5-1 trading plans, indicating a structured approach to managing insider holdings.
Financially, GigaCloud Technology upholds a solid position with a current ratio of 2.08, signaling that its liquid assets sufficiently cover short-term liabilities. The stock currently trades at a price-to-earnings ratio of 11.13. Market data further indicates that the company is projected to remain profitable throughout the year. According to InvestingPro's evaluation, GCT is rated "GREAT" in terms of financial health, a sentiment backed by comprehensive analysis across over 1,400 US equities on the platform.
Recent company developments provide additional context to these transactions. GigaCloud posted strong earnings results for the third quarter of 2025, reporting earnings per share of $0.99—substantially above the forecasted $0.72. Revenue figures also surpassed expectations, totaling $333 million against anticipated $299.83 million. These financial achievements underscore the company's growing market performance.
In a strategic move, GigaCloud completed the acquisition of New Classic Home Furnishings for $18 million, funded entirely from existing cash reserves. This acquisition, ratified by the Board of Directors and laid out in a Share Purchase Agreement, includes a post-closing earn-out provision, suggesting contingent future payments based on performance.
Additionally, GigaCloud has bolstered its sales leadership by appointing Michael Pitman and Scott Hill as vice presidents of sales. Pitman brings a wealth of industry experience, notably from Ashley Furniture Industries and other senior sales roles, signaling a targeted effort to strengthen the company’s footprint in the home furnishings sector.
Despite CEO Wu Lei's recent share sales, analysis reveals GCT stock appears undervalued at its current $40.52 price point. The stock has appreciated nearly 93% over the past 12 months, with management actively conducting share buybacks, offering a complex picture of insider activity and corporate strategy.