NEW YORK - Gorilla Technology Group Inc. (NASDAQ: GRRR), a London-headquartered provider of various technology solutions, has reported to the U.S. Securities and Exchange Commission (SEC) about suspected trading activities that might be manipulating its stock price. The company initially discovered evidence of potential manipulation in August 2023 and has since identified additional suspicious trading activities in June and September 2024.
Gorilla's investigations into these matters have been thorough, and the findings have been promptly reported to the SEC. The company has made it clear that it will not tolerate actions that could undermine market transparency and fairness and is committed to continuing its vigilant monitoring to protect its shareholders' interests.
In line with its stance on maintaining stock integrity, Gorilla also announced its intention to repurchase more shares under its current buyback program. This decision reflects the company's belief that its stock is undervalued given Gorilla's reported financial performance.
Gorilla Technology specializes in Security Intelligence, Network Intelligence, Business Intelligence, and IoT technology. The company's focus is on AI and Deep Learning Technologies, which are utilized in Smart City initiatives and various other sectors, including government, manufacturing, telecom, and healthcare.
The press release also contained forward-looking statements that are based on current estimates and assumptions. Gorilla Technology cautioned that actual results could significantly differ from these projections and does not commit to updating any forward-looking statements unless required by law.
This news is based on a press release statement and reflects the company's ongoing efforts to maintain the integrity of its stock in the market.
In other recent news, Gorilla Technology Group Inc. has completed its share buyback program, repurchasing over 1.1 million shares. The company, which believes its stock is substantially undervalued, is actively seeking additional repurchase opportunities. In terms of revenue, Gorilla Technology reported a significant growth in 2023, with revenues reaching $64.7 million, marking a 189% increase year-over-year, and a net profit of $19.9 million.
In personnel changes, Bruce Bower has been appointed as Interim Chief Financial Officer, a strategic move expected to enhance the company's financial operations. Additionally, former Bank of America executive Keith Levy has joined the company's Board of Directors, bringing extensive financial and leadership expertise.
In project wins, Gorilla Technology has secured two significant contracts in Taiwan, one at the Taoyuan International Airport and another with a major telecom company. The company is also collaborating with SINTRONES Technology Corp to enhance autonomous driving and fleet management systems. These are the recent developments for Gorilla Technology.
InvestingPro Insights
Gorilla Technology Group's recent report to the SEC about suspected stock price manipulation aligns with several key financial metrics and trends identified by InvestingPro.
According to InvestingPro data, Gorilla's stock has experienced significant volatility, with a 37.55% price total return over the last three months, contrasting sharply with a -54.76% return over the past year. This volatility could potentially be linked to the suspicious trading activities the company has reported.
Despite these challenges, Gorilla's financial fundamentals show some positive signs. The company's revenue growth is impressive, with a 188.7% increase in the last twelve months as of Q4 2023. Additionally, Gorilla has been profitable over the last twelve months, with a P/E ratio of 3.05, suggesting the stock might be undervalued relative to its earnings.
InvestingPro Tips highlight that Gorilla is "Trading at a low earnings multiple" and "Trading at a low revenue valuation multiple." These tips support the company's view that its stock may be undervalued, potentially justifying the announced share repurchase program.
However, investors should note that InvestingPro also indicates the company is "Quickly burning through cash" and "Operates with a moderate level of debt." These factors could impact Gorilla's financial flexibility and ability to execute its strategies going forward.
For a more comprehensive analysis, InvestingPro offers 13 additional tips for Gorilla Technology Group, providing deeper insights into the company's financial health and market position.
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