Cricut (NASDAQ:CRCT) Downgraded by The Goldman Sachs Group to "Sell"

Key Points

• Cricut has been downgraded by The Goldman Sachs Group from a "neutral" rating to a "sell" rating, with a price target of $4.75, indicating a potential downside of 13.79% from its current price.
• Multiple analysts now suggest a consensus rating of "Strong Sell" for Cricut, with an average price target of $4.18, reflecting a negative sentiment towards the stock.
• Insider trading activity has been notable, with executives selling significant amounts of stock, signaling potential concerns about the company's future performance.

Cricut (NASDAQ:CRCT - Get Free Report) was downgraded by equities researchers at The Goldman Sachs Group from a "neutral" rating to a "sell" rating in a report released on Thursday,Finviz reports. They presently have a $4.75 price objective on the stock. The Goldman Sachs Group's price target would indicate a potential downside of 13.79% from the company's current price.

Several other equities analysts have also recently weighed in on CRCT. Wall Street Zen cut shares of Cricut from a "buy" rating to a "hold" rating in a research note on Friday, September 5th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Cricut in a research note on Wednesday, October 8th. One equities research analyst has rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, Cricut presently has a consensus rating of "Strong Sell" and an average price target of $4.18.

Cricut Price Performance

Shares of CRCT stock opened at $5.51 on Thursday. The company has a market capitalization of $1.17 billion, a price-to-earnings ratio of 16.70 and a beta of 0.18. Cricut has a one year low of $3.94 and a one year high of $7.33. The company's fifty day moving average price is $5.98 and its 200-day moving average price is $5.76.

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

Insiders Place Their Bets

In other Cricut news, CEO Arora Ashish sold 21,250 shares of Cricut stock in a transaction on Wednesday, July 23rd. The shares were sold at an average price of $5.58, for a total value of $118,575.00. Following the completion of the transaction, the chief executive officer directly owned 3,036,561 shares of the company's stock, valued at $16,944,010.38. This trade represents a 0.69% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, General Counsel Matt Tuttle sold 40,491 shares of Cricut stock in a transaction on Friday, August 8th. The stock was sold at an average price of $5.69, for a total transaction of $230,393.79. Following the completion of the transaction, the general counsel directly owned 329,164 shares of the company's stock, valued at $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 sold a total of 330,661 shares of company stock valued at $1,941,493 over the last three months. Corporate insiders own 18.61% of the company's stock.

Hedge Funds Weigh In On Cricut

A number of institutional investors and hedge funds have recently made changes to their positions in the business. American Century Companies Inc. grew its stake in shares of Cricut by 11.5% in the 2nd quarter. American Century Companies Inc. now owns 1,544,659 shares of the company's stock worth $10,457,000 after buying an additional 159,339 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Cricut by 7.0% during the 2nd quarter. Geode Capital Management LLC now owns 1,395,525 shares of the company's stock worth $9,449,000 after purchasing an additional 91,339 shares during the period. Arrowstreet Capital Limited Partnership boosted its stake in shares of Cricut by 20.9% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 911,221 shares of the company's stock worth $6,169,000 after purchasing an additional 157,448 shares during the period. Bank of New York Mellon Corp boosted its stake in shares of Cricut by 2.0% during the 1st quarter. Bank of New York Mellon Corp now owns 485,840 shares of the company's stock worth $2,502,000 after purchasing an additional 9,300 shares during the period. Finally, Jacobs Levy Equity Management Inc. boosted its stake in shares of Cricut by 305.1% during the 1st quarter. Jacobs Levy Equity Management Inc. now owns 309,756 shares of the company's stock worth $1,595,000 after purchasing an additional 233,292 shares during the period. 19.60% of the stock is owned by hedge funds and other institutional investors.

Cricut Company Profile

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.

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