Cricut, Inc. (NASDAQ:CRCT) Stock Has Average Target Price of $4.73 According to Brokerages

Key Points

• Analyst sentiment is strongly negative: Four of six covering firms rated Cricut a sell and two rated it hold, producing a consensus “Strong Sell” rating and an average 12-month price target of $4.73.
• Cricut beat quarterly expectations: It reported EPS of $0.13 versus the $0.05 estimate and revenue of $188.62 million versus the $172.02 million estimate.
• Insiders have been selling shares: CEO Ashish Arora sold 60,000 shares for $328,800 in August, and company insiders sold 610,000 shares worth $3.61 million over the last quarter.

Shares of Cricut, Inc. (NASDAQ:CRCT - Get Free Report) have been given a consensus recommendation of "Strong Sell" by the six research firms that are presently covering the firm, MarketBeat reports. Four investment analysts have rated the stock with a sell rating and two have assigned a hold rating to the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $4.73.

CRCT has been the subject of a number of research analyst reports. Wall Street Zen raised shares of Cricut from a "hold" rating to a "buy" rating in a research note on Saturday, November 7th. Morgan Stanley reiterated an "underweight" rating and set a $3.70 price objective on shares of Cricut in a research note on Wednesday, August 5th. Weiss Ratings raised Cricut from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, November 3rd. Zacks Research downgraded Cricut from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 5th. Finally, The Goldman Sachs Group initiated coverage on Cricut in a research note on Wednesday, August 19th. They set a "sell" rating and a $4.50 price target for the company.

Insider Transactions at Cricut

In other Cricut news, CEO Ashish Arora sold 60,000 shares of the business's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $5.48, for a total value of $328,800.00. Following 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 legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 610,000 shares of company stock worth $3,613,800 over the last quarter. 16.48% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada lifted its position 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 valued at $30,000 after acquiring an additional 5,928 shares during the last quarter. Signaturefd LLC acquired a new position in shares of Cricut in the 3rd quarter worth $43,000. Ethic Inc. acquired a new position in shares of Cricut in the 3rd quarter worth $71,000. Virtus Advisers LLC acquired a new stake in shares of Cricut during the third quarter worth $73,000. Finally, AXQ Capital LP acquired a new stake in shares of Cricut during the second quarter worth $74,000. Institutional investors and hedge funds own 19.60% of the company's stock.

Cricut Price Performance

CRCT opened at $8.50 on Friday. The stock's 50 day moving average price is $6.49 and its 200 day moving average price is $5.02. The stock has a market cap of $1.78 billion, a P/E ratio of 18.48 and a beta of 0.24. Cricut has a 12 month low of $3.73 and a 12 month high of $9.70.

Cricut (NASDAQ:CRCT - Get Free Report) last released its quarterly earnings results on Tuesday, November 3rd. The company reported $0.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.05 by $0.08. The company had revenue of $188.62 million during the quarter, compared to analysts' expectations of $172.02 million. Cricut had a return on equity of 25.88% and a net margin of 13.42%. Equities analysts anticipate that Cricut will post 0.32 EPS for the current year.

Cricut Dividend Announcement

The company also recently announced a dividend, which will be paid on Thursday, January 21st. Investors of record on Thursday, January 7th will be paid a dividend of $0.10 per share. The ex-dividend date of this dividend is Thursday, January 7th. This represents a yield of 228.0%. Cricut's dividend payout ratio (DPR) is currently 43.48%.

About Cricut

Cricut, Inc. provides a platform of products and services for people who create personalized projects. Its offerings include connected cutting machines, heat presses, tools and materials used to make items such as cards, home décor, apparel and gifts. The company also offers Design Space, a digital design application that lets users create or customize projects and send them to compatible Cricut machines. Optional subscription services provide access to additional designs and other creative content.

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