Cricut, Inc. (NASDAQ:CRCT) Receives Consensus Rating of "Reduce" from Analysts

Key Points

• Analysts hold a consensus “Reduce” rating on Cricut, with four sells, one hold and one strong buy among six covering analysts. The average 12-month price target is $4.07, below the reported share price of $5.80.
• Cricut’s latest quarterly results were mixed: EPS of $0.19 beat estimates of $0.06, while revenue of $156.28 million fell short of the $159.95 million consensus forecast.
• Insiders have been selling shares: executives sold 266,366 shares worth approximately $1.44 million over the past 90 days, though insiders still own 16.48% of the company.

Shares of Cricut, Inc. (NASDAQ:CRCT - Get Free Report) have received a consensus rating of "Reduce" from the six analysts that are presently covering the stock, Marketbeat reports. Four research analysts have rated the stock with a sell recommendation, one has issued a hold recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price target among brokers that have covered the stock in the last year is $4.0667.

A number of equities research analysts have weighed in on the stock. Morgan Stanley reissued an "underweight" rating and issued a $3.70 price target on shares of Cricut in a report on Wednesday, August 5th. Zacks Research upgraded shares of Cricut from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 5th. The Goldman Sachs Group began coverage on Cricut in a report on Wednesday, August 19th. They issued a "sell" rating and a $4.50 price target on the stock. Finally, Weiss Ratings raised Cricut from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, August 6th.

Cricut Price Performance

NASDAQ CRCT opened at $5.80 on Friday. The firm has a market capitalization of $1.21 billion, a PE ratio of 13.49 and a beta of 0.19. Cricut has a 12 month low of $3.73 and a 12 month high of $6.93. The company's 50 day simple moving average is $4.96 and its 200 day simple moving average is $4.50.

Cricut (NASDAQ:CRCT - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $0.19 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.06 by $0.13. Cricut had a return on equity of 24.57% and a net margin of 12.71%.The firm had revenue of $156.28 million during the quarter, compared to analyst estimates of $159.95 million. Sell-side analysts anticipate that Cricut will post 0.32 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Ryan Harmer sold 10,000 shares of the firm's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $5.70, for a total value of $57,000.00. Following the transaction, the insider directly owned 314,428 shares in the company, valued at approximately $1,792,239.60. This trade represents a 3.08% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Arora Ashish sold 60,000 shares of the business's stock in a transaction 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 transaction, the chief executive officer directly owned 4,027,105 shares of the company's stock, valued at approximately $22,068,535.40. This represents a 1.47% 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. Over the last ninety days, insiders sold 266,366 shares of company stock worth $1,437,174. Insiders own 16.48% of the company's stock.

Institutional Trading of Cricut

Institutional investors have recently modified their holdings of the company. Osaic Holdings Inc. grew its stake in shares of Cricut by 255.9% in the 2nd quarter. Osaic Holdings Inc. now owns 3,644 shares of the company's stock valued at $25,000 after purchasing an additional 2,620 shares during the period. Caitong International Asset Management Co. Ltd lifted its position in shares of Cricut by 57,811.1% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 5,212 shares of the company's stock worth $26,000 after buying an additional 5,203 shares during the period. Royal Bank of Canada boosted its stake in Cricut by 265.0% in the 1st quarter. Royal Bank of Canada now owns 8,165 shares of the company's stock valued at $30,000 after buying an additional 5,928 shares in the last quarter. Guggenheim Capital LLC acquired a new stake in Cricut in the 4th quarter valued at $55,000. Finally, Brevan Howard Capital Management LP bought a new stake in Cricut in the third quarter valued at $75,000. Institutional investors and hedge funds own 19.60% of the company's stock.

Cricut Company Profile

Cricut, Inc NASDAQ: CRCT is a U.S.-based technology company specializing in personal and small-business crafting solutions. The company designs and markets a family of cutting machines that leverage computer-aided design to precisely cut a wide range of materials, including paper, vinyl, fabric and leather. Complementing its hardware offerings, Cricut provides proprietary software and mobile applications that enable users to create custom artwork, import graphics and access a vast library of pre-designed projects and fonts through a subscription service.

Founded as a division of Provo Craft & Novelty in 2005, Cricut emerged as an independent public company in March 2021.

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