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

Key Points

• Cricut's stock rating was downgraded by Wall Street Zen from "buy" to "hold," reflecting growing concerns about the company's performance.
• Goldman Sachs also downgraded Cricut from "neutral" to "sell," reducing its price target from $5.50 to $4.75, with an average consensus price target of $4.18.
• Despite a recent earnings report showing a beat on EPS estimates, insider selling has raised concerns among investors, as CEO Ashish Arora sold over 17,000 shares recently.

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

Several other research firms also recently commented on CRCT. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Cricut in a research report on Wednesday, October 8th. The Goldman Sachs Group downgraded Cricut from a "neutral" rating to a "sell" rating and reduced their price target for the stock from $5.50 to $4.75 in a research report on Thursday. One analyst has rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Strong Sell" and a consensus price target of $4.18.

Cricut Trading Up 0.2%

Cricut stock opened at $5.22 on Friday. Cricut has a 12 month low of $3.94 and a 12 month high of $7.33. The stock's 50 day moving average is $5.97 and its 200-day moving average is $5.77. The company has a market capitalization of $1.11 billion, a price-to-earnings ratio of 15.82 and a beta of 0.18.

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

Insider Buying and Selling at Cricut

In other Cricut news, CEO Arora Ashish sold 17,204 shares of the firm's stock in a transaction on Friday, October 17th. The stock was sold at an average price of $5.27, for a total value of $90,665.08. Following the sale, the chief executive officer owned 2,668,146 shares of the company's stock, valued at approximately $14,061,129.42. This trade represents a 0.64% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Over the last 90 days, insiders sold 380,326 shares of company stock valued at $2,207,477. Company insiders own 18.61% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Copeland Capital Management LLC lifted its stake in shares of Cricut by 16.4% in the 2nd quarter. Copeland Capital Management LLC now owns 13,632 shares of the company's stock valued at $92,000 after acquiring an additional 1,917 shares during the last quarter. First Trust Advisors LP lifted its stake in shares of Cricut by 1.3% in the 2nd quarter. First Trust Advisors LP now owns 154,368 shares of the company's stock valued at $1,045,000 after acquiring an additional 1,977 shares during the last quarter. Osaic Holdings Inc. lifted its stake in shares of 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 acquiring an additional 2,620 shares during the last quarter. XTX Topco Ltd lifted its stake in shares of Cricut by 6.3% in the 1st quarter. XTX Topco Ltd now owns 56,003 shares of the company's stock valued at $288,000 after acquiring an additional 3,326 shares during the last quarter. Finally, Exchange Traded Concepts LLC lifted its stake in shares of Cricut by 9.1% in the 3rd quarter. Exchange Traded Concepts LLC now owns 40,407 shares of the company's stock valued at $254,000 after acquiring an additional 3,370 shares during the last quarter. 19.60% of the stock is currently 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.

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