Cricut (NASDAQ:CRCT) Hits New 1-Year High - Still a Buy?

Key Points

• Cricut shares reached a new 52-week high of $6.82 and were last trading at $6.775, up from the prior close of $6.49.
• Despite the rally, analysts remain bearish: Cricut has a consensus “Strong Sell” rating and a $4.07 target price, well below its current level.
• The company beat quarterly EPS expectations, reporting $0.19 versus the $0.06 estimate, although revenue of $156.28 million fell short of forecasts. Insiders have also sold 610,000 shares worth $3.5 million over the past 90 days.

Cricut, Inc. (NASDAQ:CRCT - Get Free Report)'s stock price hit a new 52-week high during trading on Thursday. The company traded as high as $6.82 and last traded at $6.7750, with a volume of 120,271 shares traded. The stock had previously closed at $6.49.

Wall Street Analysts Forecast Growth

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

Cricut Stock Up 3.3%

The company has a market capitalization of $1.40 billion, a PE ratio of 15.57 and a beta of 0.25. The stock's fifty day moving average price is $5.91 and its two-hundred day moving average price is $4.90.

Cricut (NASDAQ:CRCT - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $0.19 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.06 by $0.13. Cricut had a return on equity of 24.57% and a net margin of 12.71%. The company had revenue of $156.28 million for the quarter, compared to the consensus estimate of $159.95 million. On average, equities research analysts forecast that Cricut, Inc. will post 0.32 EPS for the current year.

Insider Activity

In related news, CEO Ashish Arora sold 60,000 shares of the company's stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $5.48, for a total transaction of $328,800.00. Following the completion of the transaction, the chief executive officer owned 4,027,105 shares in the company, valued at $22,068,535.40. This represents a 1.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 610,000 shares of company stock worth $3,504,600 over the last 90 days. 16.48% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd lifted its position in shares of Cricut by 57,811.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 5,212 shares of the company's stock worth $26,000 after purchasing an additional 5,203 shares during the period. Royal Bank of Canada increased its position in shares of Cricut by 265.0% during the first quarter. Royal Bank of Canada now owns 8,165 shares of the company's stock valued at $30,000 after buying an additional 5,928 shares during the period. AXQ Capital LP purchased a new position in shares of Cricut during the second quarter valued at about $74,000. Diversified Trust Co purchased a new position in shares of Cricut during the first quarter valued at about $67,000. Finally, Renaissance Technologies LLC raised its stake in Cricut by 2.7% in the first quarter. Renaissance Technologies LLC now owns 879,143 shares of the company's stock worth $3,288,000 after buying an additional 23,300 shares in the last quarter. 19.60% of the stock is owned by hedge funds and other institutional investors.

About Cricut

Cricut, Inc develops and sells digital crafting technology that enables users to design, make and personalize projects. Its ecosystem includes connected cutting, heat-press, engraving and other crafting machines, along with the company's Design Space software, which allows users to create projects, prepare designs and operate compatible devices.

The company also offers a broad selection of consumable materials and accessories, including vinyl, iron-on materials, paper, specialty fabrics, cutting tools, replacement components and related crafting supplies.

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