Cricut (NASDAQ:CRCT) Stock Rating Raised to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Cricut from “hold” to “buy,” but the broader analyst consensus remains “Strong Sell,” with an average price target of $4.73.
• Cricut beat quarterly expectations, reporting earnings per share of $0.13 versus the $0.05 consensus and revenue of $188.62 million versus $172.02 million expected.
• The stock opened at $8.78; it has a 12-month range of $3.73–$9.70. Company insiders have sold 610,000 shares over the past three months.

Cricut (NASDAQ:CRCT - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday, Wall Street Zen reports.

CRCT has been the subject of several other reports. The Goldman Sachs Group initiated coverage on Cricut in a research note on Wednesday, August 19th. They issued a "sell" rating and a $4.50 price objective for the company. Barclays increased their price objective on shares of Cricut from $4.00 to $6.00 and gave the company an "underweight" rating in a research report on Thursday. Weiss Ratings upgraded Cricut from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday. Zacks Research cut shares of Cricut from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 5th. Finally, Morgan Stanley reaffirmed an "underweight" rating and set a $3.70 target price on shares of Cricut in a research 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. According to MarketBeat.com, the stock currently has an average rating of "Strong Sell" and an average price target of $4.73.

Cricut Price Performance

Cricut stock opened at $8.78 on Friday. The stock's 50-day moving average is $6.26 and its 200-day moving average is $4.94. Cricut has a 12 month low of $3.73 and a 12 month high of $9.70. The company has a market cap of $1.84 billion, a price-to-earnings ratio of 19.09 and a beta of 0.24.

Cricut (NASDAQ:CRCT - Get Free Report) last posted its earnings results on Tuesday, November 3rd. The company reported $0.13 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.05 by $0.08. The firm had revenue of $188.62 million during the quarter, compared to analysts' expectations of $172.02 million. Cricut had a net margin of 12.71% and a return on equity of 24.57%. Research analysts anticipate that Cricut will post 0.32 EPS for the current year.

Insider Activity

In other Cricut news, insider Ryan Harmer sold 10,000 shares of the business's stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $5.70, for a total value of $57,000.00. Following the sale, the insider directly owned 314,428 shares in the company, valued at $1,792,239.60. The trade was a 3.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Ashish Arora sold 60,000 shares of the 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 sale, the chief executive officer owned 4,908,740 shares in the company, valued at approximately $30,728,712.40. The trade was a 1.21% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 610,000 shares of company stock valued at $3,613,800. 16.48% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Russell Investments Group Ltd. grew its holdings in Cricut by 14.1% in the 3rd quarter. Russell Investments Group Ltd. now owns 82,920 shares of the company's stock valued at $529,000 after buying an additional 10,223 shares during the last quarter. Ethic Inc. bought a new stake in shares of Cricut during the third quarter worth approximately $71,000. Alps Advisors Inc. acquired a new stake in shares of Cricut in the third quarter valued at about $655,000. State of Wyoming lifted its position in shares of Cricut by 123.5% during the third 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. Finally, Signaturefd LLC bought a new stake in Cricut during the 3rd quarter worth approximately $43,000. Institutional investors own 19.60% of the company's stock.

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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