Cricut, Inc. (NASDAQ:CRCT) Receives Average Rating of "Strong Sell" from Analysts

Key Points

• Analysts rate Cricut a "Strong Sell" — five covering firms give an average recommendation of "Strong Sell" (four sell, one hold) with a 12‑month average target of $3.67 and several recent downgrades and low price targets.
• Insider selling is notable: CEO Arora sold 60,000 shares at $4.28 on March 2, insiders have sold 235,124 shares (~$1.06M) in the past 90 days while still owning 18.61% of the company.
• Recent results and stock metrics: Cricut reported EPS of $0.04 (in line with estimates) and revenue of $203.6M (slightly above expectations); shares opened at $3.79 with a market cap of $802.7M, P/E of 10.53 and a 52‑week range of $3.77–$7.33.

Cricut, Inc. (NASDAQ:CRCT - Get Free Report) has been assigned an average recommendation of "Strong Sell" from the five ratings firms that are currently covering the firm, MarketBeat reports. Four research analysts have rated the stock with a sell recommendation and one has given a hold recommendation to the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $3.6667.

CRCT has been the topic of several recent analyst reports. Wall Street Zen downgraded shares of Cricut from a "buy" rating to a "hold" rating in a research note on Saturday, November 29th. UBS Group reissued a "cautious" rating on shares of Cricut in a research report on Wednesday, March 4th. The Goldman Sachs Group lowered their target price on Cricut from $3.50 to $3.00 and set a "sell" rating for the company in a report on Wednesday, January 14th. Barclays reaffirmed an "underweight" rating and issued a $4.00 price objective on shares of Cricut in a research report on Wednesday, March 4th. Finally, Weiss Ratings raised Cricut from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, March 5th.

Insider Activity

In related news, CEO Arora Ashish sold 60,000 shares of the stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $4.28, for a total value of $256,800.00. Following the completion of the transaction, the chief executive officer directly owned 3,738,453 shares of the company's stock, valued at $16,000,578.84. This trade represents a 1.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders have sold a total of 235,124 shares of company stock worth $1,064,443 in the last 90 days. Corporate insiders own 18.61% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Osaic Holdings Inc. grew its holdings in shares of Cricut by 255.9% during the second quarter. Osaic Holdings Inc. now owns 3,644 shares of the company's stock valued at $25,000 after buying an additional 2,620 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its position in 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 last quarter. Guggenheim Capital LLC acquired a new stake in shares of Cricut in the fourth quarter worth $55,000. Orion Porfolio Solutions LLC purchased a new position in shares of Cricut during the fourth quarter worth $63,000. Finally, Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in Cricut during the third quarter valued at $68,000. Hedge funds and other institutional investors own 19.60% of the company's stock.

Cricut Stock Down 4.5%

Shares of NASDAQ:CRCT opened at $3.79 on Friday. The stock has a market capitalization of $802.65 million, a P/E ratio of 10.53 and a beta of 0.17. Cricut has a 52 week low of $3.77 and a 52 week high of $7.33. The firm has a fifty day simple moving average of $4.33 and a two-hundred day simple moving average of $4.96.

Cricut (NASDAQ:CRCT - Get Free Report) last announced its earnings results on Wednesday, March 4th. The company reported $0.04 EPS for the quarter, hitting analysts' consensus estimates of $0.04. The firm had revenue of $203.60 million during the quarter, compared to analysts' expectations of $202.22 million. Cricut had a return on equity of 20.44% and a net margin of 10.82%. On average, analysts expect that Cricut will post 0.28 earnings per share for the current year.

About Cricut

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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