Cricut (NASDAQ:CRCT) Shares Gap Up on Strong Earnings

Cricut, Inc. (NASDAQ:CRCT - Get Free Report)'s stock price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $5.07, but opened at $5.39. Cricut shares last traded at $6.08, with a volume of 900,777 shares.

The company reported $0.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.08 by $0.03. The firm had revenue of $162.63 million during the quarter, compared to the consensus estimate of $158.55 million. Cricut had a return on equity of 12.36% and a net margin of 8.47%.

Cricut Cuts Dividend

The business also recently disclosed a semi-annual dividend, which will be paid on Monday, July 21st. Shareholders of record on Monday, July 7th will be given a $0.10 dividend. The ex-dividend date is Monday, July 7th. This represents a yield of 3.3%. Cricut's payout ratio is currently 64.52%.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Citigroup restated 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. Morgan Stanley reduced their price target on Cricut from $3.90 to $3.80 and set an "underweight" rating on the stock in a research note on Thursday, March 6th.

Insider Transactions at Cricut

In related news, CEO Arora Ashish sold 60,000 shares of the stock in a transaction dated Monday, February 24th. The stock was sold at an average price of $5.59, for a total transaction of $335,400.00. Following the completion of the sale, the chief executive officer now owns 3,391,635 shares in the company, valued at approximately $18,959,239.65. This trade represents a 1.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders have sold 185,009 shares of company stock valued at $1,040,894 over the last quarter. 18.61% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Cricut

Several institutional investors have recently added to or reduced their stakes in CRCT. Bank of New York Mellon Corp grew its holdings in Cricut by 175.0% during the 4th quarter. Bank of New York Mellon Corp now owns 476,540 shares of the company's stock valued at $2,716,000 after buying an additional 303,236 shares in the last quarter. American Century Companies Inc. grew its holdings in Cricut by 25.8% during the 4th quarter. American Century Companies Inc. now owns 1,190,019 shares of the company's stock valued at $6,783,000 after buying an additional 244,058 shares in the last quarter. Teacher Retirement System of Texas purchased a new position in Cricut during the 4th quarter valued at approximately $1,029,000. JPMorgan Chase & Co. boosted its holdings in shares of Cricut by 296.2% in the 3rd quarter. JPMorgan Chase & Co. now owns 185,098 shares of the company's stock worth $1,283,000 after purchasing an additional 138,385 shares during the period. Finally, O Shaughnessy Asset Management LLC bought a new position in shares of Cricut during the 4th quarter valued at approximately $651,000. Hedge funds and other institutional investors own 19.60% of the company's stock.

Cricut Trading Up 2.0%

The stock has a market cap of $1.33 billion, a P/E ratio of 22.32 and a beta of 0.01. The company has a 50-day moving average price of $5.07 and a two-hundred day moving average price of $5.51.

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.