Gigacloud Technology Inc (NASDAQ: GCT) has announced a $46 million share repurchase program, reflecting the company's confidence in its long-term growth and commitment to delivering value to shareholders. In fiscal year 2023, the company generated $133.5 million in cash from operating activities and utilized $86.6 million for strategic acquisitions, ending the year with $46.9 million unspent. Gigacloud now holds over $200 million in cash, cash equivalents, and liquid investments, with no external debt and positive cash flows from operations.
The company plans to allocate the $46 million to the new share repurchase program, subject to market conditions. Gigacloud intends to enter into a 10b5-1 plan for share repurchases after the conclusion of the current quarter in accordance with applicable rules and regulations.
Under the share repurchase program, Gigacloud may purchase its ordinary shares through various means, including open market transactions, privately negotiated transactions, block trades, or any combination thereof. The timing and number of shares repurchased will depend on factors such as price, trading volume, general market conditions, the company's working capital requirements, and general business conditions.
Gigacloud Technology Inc is well-positioned to execute this share repurchase program, aiming to enhance shareholder value and signaling its confidence in the company's long-term growth and strategic initiatives. Following these announcements, the company's shares moved -3.3%, and are now trading at a price of $19.44. For more information, read the company's full 8-K submission here.
