Cricut (NASDAQ:CRCT) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Key Points

• Cricut reported earnings of $0.11 per share, exceeding analysts' expectations of $0.06 by $0.05, indicating a strong quarterly performance.
• Insider trading activity revealed that CEO Arora Ashish sold 60,000 shares for $375,000, resulting in a 2.05% decrease in his position within the company.
• Citigroup adjusted its rating on Cricut to a "sell" with a $4.00 price target, down from a previous target of $6.00, signaling a negative outlook from the analysts.

Cricut (NASDAQ:CRCT - Get Free Report) posted its quarterly earnings data on Tuesday. The company reported $0.11 EPS for the quarter, beating analysts' consensus estimates of $0.06 by $0.05, Zacks reports. Cricut had a net margin of 10.09% and a return on equity of 15.04%. The company had revenue of $172.11 million during the quarter, compared to the consensus estimate of $158.59 million.

Cricut Stock Performance

Shares of NASDAQ:CRCT traded up $0.02 during trading on Thursday, reaching $5.69. 1,243,738 shares of the stock were exchanged, compared to its average volume of 477,774. Cricut has a 12-month low of $3.94 and a 12-month high of $7.33. The firm has a market cap of $1.21 billion, a price-to-earnings ratio of 17.24 and a beta of 0.15. The firm's 50-day moving average price is $6.00 and its 200 day moving average price is $5.62.

Insider Activity

In other Cricut news, CEO Arora Ashish sold 21,250 shares of the company's stock in a transaction that occurred on Wednesday, July 23rd. The stock was 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 owned 3,036,561 shares in the company, valued at $16,944,010.38. This represents a 0.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In the last three months, insiders sold 635,989 shares of company stock worth $3,936,325. 18.61% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cricut

An institutional investor recently raised its position in Cricut stock. Jane Street Group LLC grew its holdings in shares of Cricut, Inc. (NASDAQ:CRCT - Free Report) by 43.7% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 20,176 shares of the company's stock after buying an additional 6,140 shares during the quarter. Jane Street Group LLC's holdings in Cricut were worth $104,000 as of its most recent SEC filing. 19.60% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Separately, Citigroup reiterated a "sell" rating and set a $4.00 target price (down previously from $6.00) on shares of Cricut in a report on Monday, April 14th.

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.