Cricut (NASDAQ:CRCT) Trading Down 4.8% - Should You Sell?

Key Points

• Cricut, Inc. shares fell 4.8% to $6.02, significantly below its previous closing price of $6.32, with trading volume declining by 40% compared to the average session.
• Recent analyst ratings for Cricut have been pessimistic, with one firm downgrading the stock from a "buy" to a "hold" and a consensus price target set at $4.52.
• Insider trading activity indicates a decrease in ownership positions, with significant share sales by both an insider and the CEO, suggesting potential concerns regarding the stock's future performance.

Shares of Cricut, Inc. (NASDAQ:CRCT - Get Free Report) fell 4.8% during mid-day trading on Friday . The company traded as low as $5.99 and last traded at $6.02. 313,748 shares traded hands during trading, a decline of 40% from the average session volume of 525,963 shares. The stock had previously closed at $6.32.

Analyst Ratings Changes

Several analysts have recently weighed in on CRCT shares. Wall Street Zen lowered Cricut from a "buy" rating to a "hold" rating in a report on Friday, September 5th. Weiss Ratings restated a "hold (c)" rating on shares of Cricut in a report on Saturday, September 27th. Two investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus price target of $4.52.

Cricut Trading Down 5.5%

The firm's 50 day simple moving average is $5.91 and its 200-day simple moving average is $5.75. The stock has a market capitalization of $1.27 billion, a price-to-earnings ratio of 18.09 and a beta of 0.18.

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

Insiders Place Their Bets

In related news, insider Ryan Harmer sold 18,771 shares of the firm's stock in a transaction on Friday, August 15th. The stock was sold at an average price of $5.70, for a total transaction of $106,994.70. Following the completion of the transaction, the insider directly owned 334,951 shares of the company's stock, valued at $1,909,220.70. This trade represents a 5.31% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Arora Ashish sold 21,250 shares of the business's stock in a transaction dated Thursday, September 25th. The shares were sold at an average price of $6.42, for a total value of $136,425.00. Following the completion of the transaction, the chief executive officer directly owned 2,781,561 shares in the company, valued at $17,857,621.62. This represents a 0.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 401,650 shares of company stock worth $2,390,480. Company insiders own 18.61% of the company's stock.

Institutional Trading of Cricut

Several large investors have recently made changes to their positions in the company. Ameriprise Financial Inc. purchased a new stake in shares of Cricut during the fourth quarter valued at approximately $222,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Cricut by 28.0% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 112,035 shares of the company's stock valued at $639,000 after purchasing an additional 24,507 shares in the last quarter. Public Employees Retirement System of Ohio bought a new stake in shares of Cricut during the fourth quarter valued at approximately $89,000. Simplicity Wealth LLC bought a new stake in Cricut in the first quarter worth $134,000. Finally, Bank of New York Mellon Corp boosted its holdings in Cricut by 2.0% in the first quarter. Bank of New York Mellon Corp now owns 485,840 shares of the company's stock worth $2,502,000 after acquiring an additional 9,300 shares in the last quarter. 19.60% of the stock is currently owned by institutional investors and hedge funds.

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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