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

Key Points

• Analysts are broadly bearish on Cricut: six firms give the stock a consensus “Reduce” rating, including four sells, one hold, and one strong buy. The average 12-month price target is approximately $4.07, below the reported $5.89 share price.
• Cricut’s latest quarter beat earnings expectations, reporting $0.19 EPS versus a $0.06 estimate, though revenue of $156.28 million fell short of the $159.95 million consensus forecast.
• Company insiders have been net sellers, disposing of 490,000 shares worth about $2.73 million over the past 90 days; institutional investors own 19.6% of the stock.

Shares of Cricut, Inc. (NASDAQ:CRCT - Get Free Report) have earned a consensus recommendation of "Reduce" from the six ratings firms that are covering the company, Marketbeat Ratings reports. Four analysts have rated the stock with a sell recommendation, one has given a hold recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $4.0667.

A number of research firms recently issued reports on CRCT. Morgan Stanley reiterated an "underweight" rating and issued a $3.70 target price on shares of Cricut in a research note on Wednesday, August 5th. The Goldman Sachs Group started coverage on shares of Cricut in a research report on Wednesday, August 19th. They set a "sell" rating and a $4.50 target price for the company. Weiss Ratings upgraded Cricut from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, August 6th. Finally, Zacks Research upgraded Cricut from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 5th.

Cricut Trading Up 1.4%

CRCT stock opened at $5.89 on Thursday. The firm has a market cap of $1.23 billion, a PE ratio of 13.70 and a beta of 0.25. Cricut has a 1 year low of $3.73 and a 1 year high of $6.84. The company has a fifty day simple moving average of $5.40 and a 200 day simple moving average of $4.65.

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

Insider Buying and Selling at Cricut

In related news, insider Ryan Harmer sold 10,000 shares of the business's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $5.70, for a total transaction of $57,000.00. Following the transaction, the insider owned 314,428 shares of the company's stock, valued at approximately $1,792,239.60. The trade was a 3.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Ashish Arora sold 60,000 shares of the company's stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $5.68, for a total transaction of $340,800.00. Following the transaction, the chief executive officer owned 5,417,105 shares of the company's stock, valued at approximately $30,769,156.40. The trade was a 1.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 490,000 shares of company stock worth $2,728,800. 16.48% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Bank of New York Mellon Corp bought a new stake in shares of Cricut in the second quarter valued at about $2,409,000. Dimensional Fund Advisors LP raised its holdings in Cricut by 30.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 985,868 shares of the company's stock valued at $3,687,000 after acquiring an additional 229,663 shares in the last quarter. Public Employees Retirement System of Ohio bought a new stake in shares of Cricut in the 2nd quarter worth approximately $355,000. Bank of America Corp DE lifted its position in shares of Cricut by 124.4% in the 1st quarter. Bank of America Corp DE now owns 116,790 shares of the company's stock worth $437,000 after acquiring an additional 64,737 shares during the period. Finally, Empowered Funds LLC grew its holdings in shares of Cricut by 18.1% during the 1st quarter. Empowered Funds LLC now owns 420,595 shares of the company's stock worth $1,573,000 after purchasing an additional 64,362 shares in the last quarter. Institutional investors own 19.60% of the company's stock.

Cricut Company Profile

Cricut, Inc develops creative technology products that enable consumers to design and make personalized projects. Its ecosystem combines connected cutting, writing, scoring, and heat-transfer machines with digital design tools, project content, and a broad range of craft materials and accessories.

The company's product portfolio includes Cricut smart cutting machines, such as the Explore, Maker, and Joy families, as well as heat-press equipment and related tools. These products are used for applications including apparel decoration, paper crafts, home décor, personalized gifts, signage, and other do-it-yourself projects.

Cricut also operates a digital platform that provides design software, ready-to-make projects, fonts, images, and subscription-based content.

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