Cricut (NASDAQ:CRCT) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Cricut from “strong buy” to “hold.” Other analysts remain cautious, giving the stock a consensus “strong sell” rating and an average price target of $4.07.
• Cricut shares opened at $6.38, near their 12-month high of $6.66, despite trading down 1.4%. The company’s latest quarterly earnings beat estimates, with EPS of $0.19 versus the $0.06 consensus, although revenue fell short of expectations.
• Insiders sold 610,000 shares worth about $3.5 million during the last quarter, including a 60,000-share sale by CEO Ashish Arora under a pre-arranged trading plan. Insiders own 16.48% of the company, while institutional investors hold 19.60%.

Cricut (NASDAQ:CRCT - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Monday, Zacks reports.

Several other research analysts have also recently issued reports on CRCT. Weiss Ratings upgraded shares of Cricut from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, August 6th. The Goldman Sachs Group initiated coverage on Cricut in a research report on Wednesday, August 19th. They set a "sell" rating and a $4.50 price target on the stock. Finally, Morgan Stanley reiterated an "underweight" rating and set a $3.70 price objective on shares of Cricut in a report on Wednesday, August 5th. Two equities research analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Strong Sell" and an average target price of $4.07.

Cricut Trading Down 1.4%

Shares of Cricut stock opened at $6.38 on Monday. Cricut has a 12 month low of $3.73 and a 12 month high of $6.66. The stock has a 50 day moving average of $5.73 and a 200 day moving average of $4.80. The firm has a market cap of $1.34 billion, a PE ratio of 14.84 and a beta of 0.25.

Cricut (NASDAQ:CRCT - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $0.19 earnings per share for the quarter, topping the consensus estimate of $0.06 by $0.13. The company had revenue of $156.28 million for the quarter, compared to analysts' expectations of $159.95 million. Cricut had a return on equity of 24.57% and a net margin of 12.71%. As a group, equities research analysts forecast that Cricut will post 0.32 earnings per share for the current fiscal year.

Insider Buying and Selling at Cricut

In related news, CEO Ashish Arora sold 60,000 shares of the business's stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $5.48, for a total transaction of $328,800.00. Following the completion of the sale, the chief executive officer directly owned 4,027,105 shares in the company, valued at approximately $22,068,535.40. The trade was a 1.47% 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. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 610,000 shares of company stock valued at $3,504,600 in the last quarter. Company insiders own 16.48% of the company's stock.

Hedge Funds Weigh In On Cricut

A number of institutional investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd lifted its stake in shares of Cricut by 57,811.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 5,212 shares of the company's stock valued at $26,000 after purchasing an additional 5,203 shares during the last quarter. Royal Bank of Canada grew its holdings in shares of 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. Diversified Trust Co acquired a new stake in shares of Cricut during the 1st quarter worth about $67,000. AXQ Capital LP purchased a new stake in Cricut in the 2nd quarter valued at about $74,000. Finally, E6 Portfolios LLC purchased a new stake in Cricut in the 4th quarter valued at about $75,000. 19.60% of the stock is owned by hedge funds and other institutional investors.

About Cricut

Cricut, Inc develops and sells digital crafting technology that enables users to design, make and personalize projects. Its ecosystem includes connected cutting, heat-press, engraving and other crafting machines, along with the company's Design Space software, which allows users to create projects, prepare designs and operate compatible devices.

The company also offers a broad selection of consumable materials and accessories, including vinyl, iron-on materials, paper, specialty fabrics, cutting tools, replacement components and related crafting supplies.

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