Cricut (NASDAQ:CRCT) Sets New 52-Week High - Should You Buy?

Key Points

• Cricut shares reached a new 52-week high of $6.66, with the stock trading above both its 50-day and 200-day moving averages. The company has a $1.35 billion market capitalization and a P/E ratio of 15.02.
• Analyst sentiment remains cautious: Cricut has an average rating of “Reduce” and an average price target of $4.07, below its recent trading price. Ratings range from Strong Buy to Sell, with four analysts recommending Sell.
• Cricut beat quarterly EPS expectations, reporting $0.19 versus the $0.06 consensus, although revenue of $156.28 million fell short of estimates. Insiders have sold 610,000 shares worth approximately $3.5 million over the past three months.

Shares of Cricut, Inc. (NASDAQ:CRCT - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday. The stock traded as high as $6.66 and last traded at $6.4750, with a volume of 559 shares traded. The stock had previously closed at $6.47.

Analysts Set New Price Targets

CRCT has been the subject of several recent research reports. Morgan Stanley restated an "underweight" rating and issued a $3.70 price target on shares of Cricut in a research note on Wednesday, August 5th. Weiss Ratings upgraded Cricut from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, August 6th. Zacks Research raised Cricut from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 5th. Finally, The Goldman Sachs Group started coverage on shares of Cricut in a research report on Wednesday, August 19th. They issued a "sell" rating and a $4.50 target price for the company. One research analyst has rated the stock with a Strong Buy rating, one has given a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Reduce" and an average price target of $4.07.

Cricut Stock Performance

The business's fifty day moving average is $5.70 and its 200-day moving average is $4.78. The firm has a market cap of $1.35 billion, a P/E ratio of 15.02 and a beta of 0.25.

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

Insider Activity

In other Cricut news, CEO Ashish Arora sold 60,000 shares of the business's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $5.48, for a total value of $328,800.00. Following the completion of the sale, the chief executive officer directly owned 4,027,105 shares of the company's stock, valued at $22,068,535.40. The trade was a 1.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 610,000 shares of company stock valued at $3,504,600. 16.48% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Cricut

A number of institutional investors have recently made changes to their positions in CRCT. Dimensional Fund Advisors LP increased its position in shares of Cricut by 30.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 985,868 shares of the company's stock valued at $3,687,000 after purchasing an additional 229,663 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in Cricut in the second quarter worth about $2,409,000. AXQ Capital LP bought a new stake in shares of Cricut in the 2nd quarter worth about $74,000. Public Employees Retirement System of Ohio bought a new stake in shares of Cricut during the second quarter worth $355,000. Finally, Bank of America Corp DE increased its holdings in Cricut by 124.4% during the 1st quarter. Bank of America Corp DE now owns 116,790 shares of the company's stock worth $437,000 after purchasing an additional 64,737 shares during the period. Hedge funds and other institutional investors own 19.60% of the company's stock.

Cricut Company Profile

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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