Cricut (NASDAQ:CRCT) Hits New 52-Week High After Better-Than-Expected Earnings

Key Points

• Cricut beat quarterly expectations: EPS was $0.13 versus the $0.05 consensus, while revenue of $188.62 million topped estimates of $172.02 million.
• Shares surged to a new 52-week high near $7 after closing at $5.97 previously; the stock was reported up 30.3%.
• Analyst sentiment remains bearish, with an average rating of “Strong Sell” and a $4.07 price target. Insiders also sold 610,000 shares worth about $3.6 million over the past 90 days.

Cricut, Inc. (NASDAQ:CRCT - Get Free Report) shares reached a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $7.00 and last traded at $7.0160, with a volume of 15,177 shares traded. The stock had previously closed at $5.97.

The company reported $0.13 EPS for the quarter, topping analysts' consensus estimates of $0.05 by $0.08. The company had revenue of $188.62 million during 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%.

Wall Street Analyst Weigh In

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

Insiders Place Their Bets

In other news, insider Ryan Harmer sold 10,000 shares of Cricut stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $5.70, for a total transaction of $57,000.00. Following the sale, the insider directly owned 314,428 shares in the company, valued at $1,792,239.60. The trade was a 3.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Ashish Arora sold 60,000 shares of the business's stock in a transaction on Friday, October 23rd. The shares were sold at an average price of $6.26, for a total value of $375,600.00. Following the sale, the chief executive officer owned 4,908,740 shares in the company, valued at approximately $30,728,712.40. The trade was a 1.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 610,000 shares of company stock valued at $3,613,800 over the last 90 days. 16.48% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of CRCT. Signaturefd LLC bought a new stake in shares of Cricut during the 3rd quarter valued at about $43,000. Royal Bank of Canada increased its position in Cricut by 265.0% in the first quarter. Royal Bank of Canada now owns 8,165 shares of the company's stock worth $30,000 after purchasing an additional 5,928 shares during the last quarter. Ethic Inc. purchased a new stake in shares of Cricut in the third quarter valued at $71,000. AXQ Capital LP bought a new position in shares of Cricut in the second quarter worth about $74,000. Finally, Walleye Capital LLC bought a new stake in shares of Cricut in the 1st quarter valued at about $100,000. 19.60% of the stock is currently owned by institutional investors.

Cricut Stock Up 30.3%

The company's 50 day simple moving average is $6.07 and its two-hundred day simple moving average is $4.87. The company has a market capitalization of $1.63 billion, a price-to-earnings ratio of 17.90 and a beta of 0.24.

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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