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

Key Points

• Cricut, Inc. shares gapped up to $5.52 after reporting an earnings beat, with an EPS of $0.11 compared to analysts' expectations of $0.06.
• Citigroup revised its price target for Cricut shares down to $4.00 from $6.00, maintaining a "sell" rating.
• CEO Arora Ashish sold 21,250 shares at $5.58 each, decreasing his ownership in the company by 0.69%.

Cricut, Inc. (NASDAQ:CRCT - Get Free Report) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $4.85, but opened at $5.52. Cricut shares last traded at $5.53, with a volume of 380,196 shares trading hands.

The company reported $0.11 earnings per share for the quarter, topping analysts' consensus estimates of $0.06 by $0.05. The firm had revenue of $172.11 million for the quarter, compared to analyst estimates of $158.59 million. Cricut had a net margin of 10.09% and a return on equity of 16.49%.

Analyst Ratings Changes

A number of analysts recently issued reports on CRCT shares. Wall Street Zen raised shares of Cricut from a "hold" rating to a "buy" rating in a report on Saturday. Citigroup reissued a "sell" rating and set a $4.00 price target (down from $6.00) on shares of Cricut in a report on Monday, April 14th.

Insider Transactions at Cricut

In related news, CEO Arora Ashish sold 21,250 shares of the stock in a transaction on Wednesday, July 23rd. The shares were sold at an average price of $5.58, for a total transaction of $118,575.00. Following the sale, the chief executive officer directly owned 3,036,561 shares of the company's stock, valued at approximately $16,944,010.38. This represents a 0.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Insiders have sold 635,989 shares of company stock worth $3,936,325 over the last quarter. Corporate insiders own 18.61% of the company's stock.

Hedge Funds Weigh In On Cricut

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. MQS Management LLC purchased a new position in Cricut during the first quarter valued at $59,000. ProShare Advisors LLC purchased a new position in Cricut during the fourth quarter valued at $75,000. Vanguard Personalized Indexing Management LLC purchased a new position in Cricut during the second quarter valued at $80,000. Orion Portfolio Solutions LLC purchased a new position in Cricut during the fourth quarter valued at $84,000. Finally, Public Employees Retirement System of Ohio purchased a new position in Cricut during the fourth quarter valued at $89,000. 19.60% of the stock is owned by hedge funds and other institutional investors.

Cricut Price Performance

The firm has a market capitalization of $1.20 billion, a PE ratio of 17.21 and a beta of 0.15. The company's fifty day simple moving average is $5.99 and its 200-day simple moving average is $5.61.

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.