Cricut (NASDAQ:CRCT) Cut to "Hold" at 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 Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Friday.

Cricut Trading Up 1.2%

Shares of NASDAQ CRCT opened at $5.93 on Friday. The stock has a market cap of $1.26 billion, a price-to-earnings ratio of 17.97 and a beta of 0.16. Cricut has a 1-year low of $3.94 and a 1-year high of $7.33. The stock's 50-day moving average is $5.68 and its 200 day moving average is $5.63.

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

Insider Activity at Cricut

In related news, CEO Arora Ashish sold 60,000 shares of the company's stock in a transaction on Monday, July 7th. The stock was sold at an average price of $6.25, for a total value of $375,000.00. Following the sale, the chief executive officer directly owned 2,871,931 shares of the company's stock, valued at $17,949,568.75. This represents a 2.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, General Counsel Matt Tuttle sold 40,491 shares of the company's stock in a transaction on Friday, August 8th. The stock was sold at an average price of $5.69, for a total value of $230,393.79. Following the completion of the sale, the general counsel directly owned 329,164 shares in the company, valued at approximately $1,872,943.16. The trade was a 10.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 436,650 shares of company stock worth $2,628,343 over the last three months. Insiders own 18.61% of the company's stock.

Institutional Investors Weigh In On Cricut

Several hedge funds have recently added to or reduced their stakes in CRCT. Osaic Holdings Inc. lifted 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 purchasing an additional 2,620 shares in the last quarter. Ameriprise Financial Inc. lifted its holdings in shares of Cricut by 238.9% during the second quarter. Ameriprise Financial Inc. now owns 131,933 shares of the company's stock valued at $893,000 after purchasing an additional 93,002 shares in the last quarter. Jane Street Group LLC lifted its holdings in shares of Cricut by 356.3% during the second quarter. Jane Street Group LLC now owns 92,057 shares of the company's stock valued at $623,000 after purchasing an additional 71,881 shares in the last quarter. First Trust Advisors LP lifted its holdings in shares of Cricut by 1.3% during the second quarter. First Trust Advisors LP now owns 154,368 shares of the company's stock valued at $1,045,000 after purchasing an additional 1,977 shares in the last quarter. Finally, Invesco Ltd. lifted its holdings in shares of Cricut by 62.8% during the second quarter. Invesco Ltd. now owns 55,971 shares of the company's stock valued at $379,000 after purchasing an additional 21,582 shares in the last quarter. 19.60% of the stock is owned by 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.