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

Key Points

• Analysts remain strongly bearish on Cricut: Four of five covering firms rate the stock “sell,” while one rates it “hold.” The average 12-month price target is $3.875, below the reported trading price of $5.79.
• Cricut shares rose 17.2% to $5.79, despite the negative consensus. The company’s latest quarterly earnings of $0.19 per share exceeded estimates of $0.06, although revenue of $156.28 million fell short of expectations.
• Insider activity was mixed, with a director purchasing shares while another insider sold stock; insiders sold 93,633 shares worth $378,514 over the past 90 days. Institutional investors own 19.60% of Cricut.

Shares of Cricut, Inc. (NASDAQ:CRCT - Get Free Report) have been assigned an average recommendation of "Strong Sell" from the five research firms that are covering the company, MarketBeat.com reports. Four investment analysts have rated the stock with a sell rating and one has issued a hold rating on the company. The average twelve-month price objective among analysts that have covered the stock in the last year is $3.8750.

Several research firms have recently weighed in on CRCT. The Goldman Sachs Group reiterated a "sell" rating and issued a $3.75 price objective on shares of Cricut in a research note on Wednesday, May 6th. Weiss Ratings raised Cricut from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, July 21st. Finally, Morgan Stanley reissued an "underweight" rating on shares of Cricut in a research note on Wednesday.

Insiders Place Their Bets

In related news, Director Jason Makler purchased 9,691 shares of the business's stock in a transaction on Tuesday, May 12th. The stock was acquired at an average price of $4.34 per share, for a total transaction of $42,058.94. Following the purchase, the director owned 29,690 shares of the company's stock, valued at approximately $128,854.60. This trade represents a 48.46% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Ryan Harmer sold 17,267 shares of the stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $4.12, for a total value of $71,140.04. Following the completion of the sale, the insider directly owned 325,579 shares of the company's stock, valued at $1,341,385.48. The trade was a 5.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 93,633 shares of company stock worth $378,514. Insiders own 16.48% of the company's stock.

Institutional Investors Weigh In On Cricut

Institutional investors have recently added to or reduced their stakes in the company. First Trust Advisors LP lifted its position in shares of Cricut by 1.3% during the 2nd quarter. First Trust Advisors LP now owns 154,368 shares of the company's stock worth $1,045,000 after buying an additional 1,977 shares in the last quarter. Deutsche Bank AG boosted its position in Cricut by 6.0% in the fourth quarter. Deutsche Bank AG now owns 41,949 shares of the company's stock worth $208,000 after purchasing an additional 2,374 shares during the last quarter. Osaic Holdings Inc. grew its stake in 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. Legal & General Group Plc increased its position in shares of Cricut by 6.0% during the 3rd quarter. Legal & General Group Plc now owns 62,812 shares of the company's stock valued at $395,000 after purchasing an additional 3,566 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC boosted its holdings in shares of Cricut by 16.1% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 25,992 shares of the company's stock worth $126,000 after buying an additional 3,597 shares during the last quarter. 19.60% of the stock is owned by institutional investors.

Cricut Stock Up 17.2%

CRCT traded up $0.85 during trading on Wednesday, reaching $5.79. 633,767 shares of the stock traded hands, compared to its average volume of 541,060. The stock has a market capitalization of $1.22 billion, a PE ratio of 16.54 and a beta of 0.19. The stock's 50-day moving average is $4.45 and its 200 day moving average is $4.33. Cricut has a 12 month low of $3.73 and a 12 month high of $6.93.

Cricut (NASDAQ:CRCT - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.19 earnings per share for the quarter, topping the consensus estimate of $0.06 by $0.13. Cricut had a return on equity of 21.37% and a net margin of 10.36%.The firm had revenue of $156.28 million during the quarter, compared to analyst estimates of $159.95 million. As a group, equities research analysts anticipate that Cricut will post 0.14 EPS for the current year.

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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