Cricut (NASDAQ:CRCT) Lowered to "Hold" Rating by Wall Street Zen

Key Points

• Cricut has been downgraded from a "buy" rating to a "hold" rating by Wall Street Zen, indicating a shift in investor sentiment.
• The company reported a quarterly earnings per share (EPS) of $0.11, surpassing analysts' expectations of $0.06, while revenue reached $172.11 million, also exceeding forecasts.
• Insider trading activity included the CEO selling 60,000 shares at an average price of $6.25, reflecting a 2.05% decrease in ownership, which may raise concerns among investors.

Cricut (NASDAQ:CRCT - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Friday.

Cricut Stock Up 3.8%

Shares of Cricut stock traded up $0.24 during trading on Friday, reaching $6.48. The company's stock had a trading volume of 809,684 shares, compared to its average volume of 617,188. Cricut has a 52-week low of $3.94 and a 52-week high of $7.33. The company has a market cap of $1.38 billion, a price-to-earnings ratio of 19.64 and a beta of 0.16. The firm's 50-day moving average is $5.62 and its two-hundred day moving average is $5.64.

Cricut (NASDAQ:CRCT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The company reported $0.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.06 by $0.05. Cricut had a net margin of 10.09% and a return on equity of 16.49%. The company had revenue of $172.11 million during the quarter, compared to analysts' expectations of $158.59 million. On average, equities research analysts anticipate that Cricut will post 0.28 EPS for the current year.

Insiders Place Their Bets

In other Cricut news, CEO Arora Ashish sold 21,250 shares of the firm's stock in a transaction on Thursday, September 11th. The shares were sold at an average price of $6.36, for a total value of $135,150.00. Following the sale, the chief executive officer owned 2,845,311 shares of the company's stock, valued at $18,096,177.96. This trade represents a 0.74% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Ryan Harmer sold 18,771 shares of the firm's stock in a transaction on Friday, August 15th. The stock was sold at an average price of $5.70, for a total transaction of $106,994.70. Following the completion of the sale, the insider directly owned 334,951 shares in the company, valued at approximately $1,909,220.70. This trade represents a 5.31% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 479,150 shares of company stock valued at $2,894,393 in the last quarter. Insiders own 18.61% of the company's stock.

Institutional Investors Weigh In On Cricut

Institutional investors and hedge funds have recently modified their holdings of the stock. American Century Companies Inc. lifted its position in Cricut by 11.5% during the 2nd quarter. American Century Companies Inc. now owns 1,544,659 shares of the company's stock valued at $10,457,000 after acquiring an additional 159,339 shares during the period. Geode Capital Management LLC grew its position in Cricut by 7.0% during the second quarter. Geode Capital Management LLC now owns 1,395,525 shares of the company's stock valued at $9,449,000 after buying an additional 91,339 shares during the period. Arrowstreet Capital Limited Partnership grew its position in Cricut by 20.9% during the second quarter. Arrowstreet Capital Limited Partnership now owns 911,221 shares of the company's stock valued at $6,169,000 after buying an additional 157,448 shares during the period. Bank of New York Mellon Corp grew its position in Cricut by 2.0% during the first quarter. Bank of New York Mellon Corp now owns 485,840 shares of the company's stock valued at $2,502,000 after buying an additional 9,300 shares during the period. Finally, Northern Trust Corp lifted its stake in shares of Cricut by 10.9% during the 4th quarter. Northern Trust Corp now owns 451,772 shares of the company's stock valued at $2,575,000 after buying an additional 44,260 shares in the last quarter. 19.60% of the stock is owned by hedge funds and other institutional investors.

About Cricut

Cricut, Inc engages in the design, marketing, and distribution of a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates through three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations.