Cricut (NASDAQ:CRCT) Issues Earnings Results

Key Points

• Cricut beat quarterly estimates: Earnings per share were $0.13 versus consensus of $0.05, while revenue of $188.62 million exceeded the $172.02 million estimate.
• Analyst sentiment remains negative: MarketBeat reports an average “Strong Sell” rating and a $4.07 consensus price target; shares traded at $5.97 on Tuesday.
• Company insiders sold 670,000 shares worth about $3.97 million over the past 90 days. CEO Ashish Arora’s reported sale of 60,000 shares was made under a pre-arranged trading plan.

Cricut (NASDAQ:CRCT - Get Free Report) announced its earnings results on Tuesday. The company reported $0.13 earnings per share for the quarter, topping analysts' consensus estimates of $0.05 by $0.08, FiscalAI reports. The business had revenue of $188.62 million for the quarter, compared to analyst estimates of $172.02 million. Cricut had a return on equity of 24.57% and a net margin of 12.71%.

Cricut Stock Performance

Shares of CRCT traded down $0.07 on Tuesday, reaching $5.97. The stock had a trading volume of 659,877 shares, compared to its average volume of 609,975. Cricut has a 12-month low of $3.73 and a 12-month high of $6.82. The firm has a market capitalization of $1.25 billion, a price-to-earnings ratio of 13.88 and a beta of 0.25. The company has a 50-day simple moving average of $6.06 and a 200-day simple moving average of $4.86.

Insider Transactions at Cricut

In other news, CEO Ashish Arora sold 60,000 shares of the stock in a transaction on Friday, October 23rd. The stock was sold at an average price of $6.26, for a total value of $375,600.00. Following the sale, the chief executive officer directly owned 4,908,740 shares of the company's stock, valued at approximately $30,728,712.40. This represents a 1.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ryan Harmer sold 10,000 shares of the firm's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $5.70, for a total transaction of $57,000.00. Following the sale, the insider owned 314,428 shares of the company's stock, valued at approximately $1,792,239.60. This represents a 3.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 670,000 shares of company stock worth $3,972,600 over the last ninety days. Insiders own 16.48% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on CRCT. Morgan Stanley reaffirmed an "underweight" rating and issued a $3.70 target price on shares of Cricut in a research note on Wednesday, August 5th. Zacks Research cut shares of Cricut from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 5th. Weiss Ratings raised shares of Cricut from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, August 6th. Finally, The Goldman Sachs Group started coverage on shares of Cricut in a report on Wednesday, August 19th. They issued a "sell" rating and a $4.50 price objective for the company. Two equities research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Strong Sell" and a consensus target price of $4.07.

Cricut Company Profile

Cricut, Inc develops and sells connected cutting machines and related products for do-it-yourself crafting, personalization and small-scale creative production. Its systems are designed to cut, draw, score and apply materials such as paper, vinyl, fabric, leather and iron-on transfers, enabling users to create customized home décor, apparel, gifts and other projects.

The company's product portfolio includes Cricut smart cutting machines, heat presses, specialized tools and a broad range of consumable materials.

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