Cricut (NASDAQ:CRCT) Shares Down 0.9% - What's Next?

Key Points

• Cricut shares slipped 0.9% in Tuesday trading, with volume below the daily average and the stock last changing hands around $4.48. The company’s market cap is about $940 million.
• Analysts remain bearish on the stock: Weiss Ratings downgraded Cricut to sell, Goldman Sachs reiterated a sell rating, and the current consensus is a Strong Sell with an average price target of $3.88.
• Recent financial and corporate updates were mixed: Cricut beat EPS expectations in its latest quarter but missed revenue estimates, while the company also announced a $0.10 dividend and saw notable insider selling in recent weeks.

Cricut, Inc. (NASDAQ:CRCT - Get Free Report)'s stock price traded down 0.9% during mid-day trading on Tuesday . The stock traded as low as $4.47 and last traded at $4.48. 349,101 shares were traded during mid-day trading, a decline of 33% from the average session volume of 517,577 shares. The stock had previously closed at $4.52.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on CRCT shares. Weiss Ratings cut Cricut from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, May 11th. The Goldman Sachs Group reaffirmed a "sell" rating and issued a $3.75 target price on shares of Cricut in a report on Wednesday, May 6th. Four analysts have rated the stock with a Sell rating, According to MarketBeat.com, Cricut has a consensus rating of "Strong Sell" and an average price target of $3.88.

Cricut Trading Down 0.9%

The stock has a market capitalization of $940.35 million, a P/E ratio of 12.80 and a beta of 0.18. The business's fifty day simple moving average is $4.29 and its two-hundred day simple moving average is $4.36.

Cricut (NASDAQ:CRCT - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $0.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.05 by $0.05. The company had revenue of $159.47 million for the quarter, compared to the consensus estimate of $164.33 million. Cricut had a net margin of 10.36% and a return on equity of 21.37%. On average, equities research analysts anticipate that Cricut, Inc. will post 0.14 earnings per share for the current year.

Cricut Dividend Announcement

The company also recently declared a dividend, which will be paid on Tuesday, July 21st. Investors of record on Tuesday, July 7th will be paid a dividend of $0.10 per share. This represents a yield of 461.0%. The ex-dividend date is Tuesday, July 7th. Cricut's payout ratio is currently 57.14%.

Insider Activity at Cricut

In other Cricut news, CEO Arora Ashish sold 60,000 shares of the company's stock in a transaction that occurred on Wednesday, May 20th. The stock was 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 position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ryan Harmer sold 17,267 shares of Cricut stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $4.12, for a total value of $71,140.04. Following the sale, the insider directly owned 325,579 shares in the company, valued at $1,341,385.48. The trade was a 5.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 93,633 shares of company stock worth $378,514 over the last three months. Company insiders own 18.02% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of CRCT. Jane Street Group LLC increased its holdings in Cricut by 43.7% in the 1st quarter. Jane Street Group LLC now owns 20,176 shares of the company's stock valued at $104,000 after buying an additional 6,140 shares during the period. Legal & General Group Plc lifted its holdings in shares of Cricut by 15.8% during the 2nd quarter. Legal & General Group Plc now owns 59,246 shares of the company's stock worth $401,000 after acquiring an additional 8,095 shares during the period. Franklin Resources Inc. acquired a new stake in shares of Cricut during the 2nd quarter valued at about $232,000. Russell Investments Group Ltd. boosted its position in shares of Cricut by 288.7% during the 2nd quarter. Russell Investments Group Ltd. now owns 21,017 shares of the company's stock valued at $142,000 after acquiring an additional 15,610 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position 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 valued at $6,169,000 after acquiring an additional 157,448 shares in the last quarter. 19.60% of the stock is owned by institutional investors.

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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