Barclays Issues Positive Forecast for Cricut (NASDAQ:CRCT) Stock Price

Key Points

• Barclays raised its Cricut price target from $4 to $6 but kept an “underweight” rating, implying 33.8% downside from the stock’s then-current price.
• Analyst sentiment overall remained negative: MarketBeat reported a “Strong Sell” consensus and an average price target of $4.73.
• Cricut beat quarterly expectations, reporting EPS of $0.13 versus $0.05 expected and revenue of $188.62 million versus $172.02 million estimated.

Cricut (NASDAQ:CRCT - Get Free Report) had its price objective raised by Barclays from $4.00 to $6.00 in a report released on Thursday, Benzinga reports. The firm currently has an "underweight" rating on the stock. Barclays's price target indicates a potential downside of 33.80% from the stock's current price.

A number of other equities research analysts have also recently weighed in on the stock. Weiss Ratings upgraded shares of Cricut from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday. Morgan Stanley restated an "underweight" rating and issued a $3.70 price objective on shares of Cricut in a report on Wednesday, August 5th. Zacks Research cut shares of Cricut from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 5th. Finally, The Goldman Sachs Group assumed coverage on Cricut in a research report on Wednesday, August 19th. They issued a "sell" rating and a $4.50 target price on the stock. Two analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat, Cricut currently has a consensus rating of "Strong Sell" and an average price target of $4.73.

Cricut Stock Performance

Shares of NASDAQ CRCT traded up $0.18 during mid-day trading on Thursday, reaching $9.06. 2,025,536 shares of the company's stock were exchanged, compared to its average volume of 650,548. The firm has a market capitalization of $1.90 billion, a price-to-earnings ratio of 19.58 and a beta of 0.24. Cricut has a 52-week low of $3.73 and a 52-week high of $9.70. The company's 50-day moving average is $6.13 and its 200-day moving average is $4.89.

Cricut (NASDAQ:CRCT - Get Free Report) last issued its quarterly earnings data on Tuesday, November 3rd. The company reported $0.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.08. Cricut had a net margin of 13.42% and a return on equity of 26.66%. The firm had revenue of $188.62 million for the quarter, compared to analyst estimates of $172.02 million. As a group, equities analysts predict that Cricut will post 0.32 earnings per share for the current fiscal year.

Insider Transactions at Cricut

In other news, insider Ryan Harmer sold 10,000 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $5.70, for a total transaction of $57,000.00. Following the sale, the insider owned 314,428 shares of the company's stock, valued at approximately $1,792,239.60. This represents a 3.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Ashish Arora sold 60,000 shares of the firm's stock in a transaction that occurred on Friday, October 23rd. The shares were sold at an average price of $6.26, for a total transaction of $375,600.00. Following the completion of the transaction, the chief executive officer directly owned 4,908,740 shares of the company's stock, valued at approximately $30,728,712.40. The trade was a 1.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 610,000 shares of company stock worth $3,613,800 over the last quarter. Insiders own 16.48% of the company's stock.

Institutional Investors Weigh In On Cricut

A number of hedge funds have recently added to or reduced their stakes in CRCT. Bank of New York Mellon Corp purchased a new position in Cricut in the second quarter valued at $2,409,000. Dimensional Fund Advisors LP increased its holdings in Cricut by 30.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 985,868 shares of the company's stock worth $3,687,000 after purchasing an additional 229,663 shares during the period. Bank of America Corp DE increased its holdings in Cricut by 124.4% during the 1st quarter. Bank of America Corp DE now owns 116,790 shares of the company's stock worth $437,000 after purchasing an additional 64,737 shares during the period. Royal Bank of Canada increased its holdings in Cricut by 265.0% during the 1st quarter. Royal Bank of Canada now owns 8,165 shares of the company's stock worth $30,000 after purchasing an additional 5,928 shares during the period. Finally, State of Wyoming raised its position in Cricut by 123.5% in the 3rd quarter. State of Wyoming now owns 36,252 shares of the company's stock valued at $231,000 after purchasing an additional 20,033 shares in the last quarter. 19.60% of the stock is currently owned by institutional investors and hedge funds.

Cricut Company Profile

Cricut, Inc develops and sells connected cutting machines and related products for do-it-yourself crafting, personalization and small-scale creative production. Its systems are designed to cut, draw, score and apply materials such as paper, vinyl, fabric, leather and iron-on transfers, enabling users to create customized home décor, apparel, gifts and other projects.

The company's product portfolio includes Cricut smart cutting machines, heat presses, specialized tools and a broad range of consumable materials.

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