Cricut (NASDAQ:CRCT) Stock Price Down 4.5% on Insider Selling

Key Points

• Cricut shares fell 4.5% to about $5.59 after CEO Ashish Arora sold 60,000 shares for approximately $347,400 under a pre-arranged Rule 10b5-1 trading plan.
• Analyst sentiment remains weak, with a consensus “Reduce” rating and an average price target of $4.07; Goldman Sachs and Morgan Stanley assigned sell or underweight ratings.
• Cricut beat quarterly EPS expectations, reporting $0.19 versus the $0.06 consensus, but revenue of $156.28 million came in below estimates of $159.95 million.

Shares of Cricut, Inc. (NASDAQ:CRCT - Get Free Report) dropped 4.5% on Friday following insider selling activity. The stock traded as low as $5.60 and last traded at $5.5850. 217,694 shares were traded during trading, a decline of 64% from the average daily volume of 598,532 shares. The stock had previously closed at $5.85.

Specifically, CEO Ashish Arora sold 60,000 shares of the stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $5.79, for a total value of $347,400.00. Following the completion of the sale, the chief executive officer owned 5,717,105 shares in the company, valued at approximately $33,102,037.95. This trade represents a 1.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

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

Cricut Stock Performance

The firm has a 50 day moving average of $5.08 and a 200-day moving average of $4.54. The stock has a market capitalization of $1.17 billion, a PE ratio of 13.01 and a beta of 0.25.

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

Institutional Trading of Cricut

A number of institutional investors and hedge funds have recently modified their holdings of the company. Osaic Holdings Inc. boosted its holdings in Cricut by 255.9% during the second quarter. Osaic Holdings Inc. now owns 3,644 shares of the company's stock valued at $25,000 after acquiring an additional 2,620 shares during the period. Caitong International Asset Management Co. Ltd raised its stake in shares of Cricut by 57,811.1% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 5,212 shares of the company's stock valued at $26,000 after purchasing an additional 5,203 shares in the last quarter. Royal Bank of Canada lifted its holdings in shares of Cricut by 265.0% during the 1st quarter. Royal Bank of Canada now owns 8,165 shares of the company's stock worth $30,000 after acquiring an additional 5,928 shares during the period. Guggenheim Capital LLC acquired a new stake in Cricut during the fourth quarter valued at approximately $55,000. Finally, Orion Porfolio Solutions LLC acquired a new stake in Cricut in the 4th quarter valued at $63,000. 19.60% of the stock is currently owned by institutional investors and hedge funds.

About Cricut

Cricut, Inc NASDAQ: CRCT is a U.S.-based technology company specializing in personal and small-business crafting solutions. The company designs and markets a family of cutting machines that leverage computer-aided design to precisely cut a wide range of materials, including paper, vinyl, fabric and leather. Complementing its hardware offerings, Cricut provides proprietary software and mobile applications that enable users to create custom artwork, import graphics and access a vast library of pre-designed projects and fonts through a subscription service.

Founded as a division of Provo Craft & Novelty in 2005, Cricut emerged as an independent public company in March 2021.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source