Cricut (NASDAQ:CRCT) Sees Unusually-High Trading Volume After Earnings Beat

Key Points

• Cricut shares jumped 21.1% to $5.73 on unusually high trading volume after the company reported quarterly earnings of $0.19 per share, beating the $0.06 analyst consensus. Revenue of $156.28 million fell slightly short of the $159.95 million estimate.
• Despite the earnings beat, analyst sentiment remains negative: four analysts rate the stock a Sell and one rates it Hold, producing a consensus “Strong Sell” rating and a $3.88 price target.
• Insider activity was mixed, with the CEO selling 60,000 shares while a director purchased 9,691 shares. Institutional investors own 19.60% of Cricut, while company insiders hold 16.48%.

Shares of Cricut, Inc. (NASDAQ:CRCT - Get Free Report) saw strong trading volume on Wednesday after the company announced better than expected quarterly earnings. 597,368 shares traded hands during mid-day trading, an increase of 11% from the previous session's volume of 538,553 shares.The stock last traded at $5.73 and had previously closed at $4.94.

The company reported $0.19 earnings per share for the quarter, beating analysts' consensus estimates of $0.06 by $0.13. The firm had revenue of $156.28 million during the quarter, compared to the consensus estimate of $159.95 million. Cricut had a net margin of 10.36% and a return on equity of 21.37%.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on CRCT shares. Weiss Ratings upgraded shares of Cricut from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday, July 21st. Morgan Stanley reaffirmed an "underweight" rating on shares of Cricut in a report on Wednesday. Finally, The Goldman Sachs Group reiterated a "sell" rating and issued a $3.75 price objective on shares of Cricut in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Strong Sell" and a consensus price target of $3.88.

Insider Transactions at Cricut

In related news, CEO Arora Ashish sold 60,000 shares of the stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $3.95, for a total value of $237,000.00. Following the completion of the transaction, the chief executive officer owned 4,461,592 shares of the company's stock, valued at $17,623,288.40. This represents a 1.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jason Makler purchased 9,691 shares of the business's stock in a transaction on Tuesday, May 12th. The shares were acquired at an average price of $4.34 per share, with a total value of $42,058.94. Following the purchase, the director owned 29,690 shares of the company's stock, valued at approximately $128,854.60. This trade represents a 48.46% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders sold 93,633 shares of company stock valued at $378,514. Company insiders own 16.48% of the company's stock.

Institutional Trading of Cricut

A number of large investors have recently bought and sold shares of CRCT. Millennium Management LLC boosted its stake in shares of Cricut by 374.5% in the 4th quarter. Millennium Management LLC now owns 982,343 shares of the company's stock valued at $4,863,000 after purchasing an additional 775,330 shares in the last quarter. Algert Global LLC increased its position in shares of Cricut by 354.9% during the 3rd quarter. Algert Global LLC now owns 615,697 shares of the company's stock worth $3,873,000 after purchasing an additional 480,364 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its position in shares of Cricut by 51.4% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,379,155 shares of the company's stock worth $8,675,000 after purchasing an additional 467,934 shares in the last quarter. Jacobs Levy Equity Management Inc. lifted its holdings in Cricut by 76.6% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 906,141 shares of the company's stock valued at $5,700,000 after purchasing an additional 392,951 shares during the last quarter. Finally, Tudor Investment Corp ET AL boosted its position in Cricut by 824.0% in the third quarter. Tudor Investment Corp ET AL now owns 358,213 shares of the company's stock valued at $2,253,000 after buying an additional 319,447 shares in the last quarter. 19.60% of the stock is currently owned by institutional investors.

Cricut Stock Up 21.1%

The stock has a market capitalization of $1.26 billion, a price-to-earnings ratio of 17.09 and a beta of 0.19. The stock's 50-day simple moving average is $4.45 and its 200 day simple moving average is $4.33.

About Cricut

Cricut, Inc NASDAQ: CRCT is a U.S.-based technology company specializing in personal and small-business crafting solutions. The company designs and markets a family of cutting machines that leverage computer-aided design to precisely cut a wide range of materials, including paper, vinyl, fabric and leather. Complementing its hardware offerings, Cricut provides proprietary software and mobile applications that enable users to create custom artwork, import graphics and access a vast library of pre-designed projects and fonts through a subscription service.

Founded as a division of Provo Craft & Novelty in 2005, Cricut emerged as an independent public company in March 2021.

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