Cricut, Inc. (NASDAQ:CRCT) Given Consensus Recommendation of “Reduce” by Analysts

Cricut, Inc. (NASDAQ:CRCT) has been given a consensus rating of “Reduce” by the six analysts that are currently covering the company, MarketBeat Ratings reports. Four research analysts have rated the stock with a sell rating, one has issued a hold rating and one has issued a strong buy rating on the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $4.0667.

Several equities analysts have weighed in on CRCT shares. The Goldman Sachs Group initiated coverage on shares of Cricut in a report on Wednesday, August 19th. They set a “sell” rating and a $4.50 target price for the company. Morgan Stanley reaffirmed an “underweight” rating and issued a $3.70 price target on shares of Cricut in a report on Wednesday, August 5th. Zacks Research upgraded shares of Cricut from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, August 5th. Finally, Weiss Ratings raised shares of Cricut from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, August 6th.

Cricut Stock Performance

Shares of CRCT opened at $5.54 on Friday. Cricut has a fifty-two week low of $3.73 and a fifty-two week high of $6.93. The firm has a 50-day simple moving average of $5.10 and a 200-day simple moving average of $4.54. The company has a market capitalization of $1.16 billion, a price-to-earnings ratio of 12.88 and a beta of 0.25.

Cricut (NASDAQ:CRCT) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.19 earnings per share for the quarter, beating analysts’ consensus estimates of $0.06 by $0.13. The firm 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%. Equities research analysts forecast that Cricut will post 0.32 EPS for the current year.

Insider Activity

In other Cricut news, insider Ryan Harmer sold 10,000 shares of Cricut stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $5.70, for a total value of $57,000.00. Following the completion of the sale, the insider 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 filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Ashish Arora sold 60,000 shares of the business’s stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $5.79, for a total transaction of $347,400.00. Following the completion of the sale, the chief executive officer owned 5,717,105 shares of the company’s stock, valued at approximately $33,102,037.95. The trade was a 1.04% 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 have sold a total of 310,000 shares of company stock worth $1,714,200 over the last ninety days. 16.48% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cricut

Several institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its position in Cricut by 3.6% in the third quarter. Vanguard Group Inc. now owns 4,729,857 shares of the company’s stock valued at $29,751,000 after purchasing an additional 163,602 shares during the period. Geode Capital Management LLC boosted its position in shares of Cricut by 2.3% in the fourth quarter. Geode Capital Management LLC now owns 1,417,153 shares of the company’s stock worth $7,016,000 after buying an additional 31,736 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in shares of Cricut by 51.4% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,379,155 shares of the company’s stock valued at $8,675,000 after buying an additional 467,934 shares in the last quarter. State Street Corp grew its stake in shares of Cricut by 0.9% in the fourth quarter. State Street Corp now owns 1,220,292 shares of the company’s stock valued at $6,040,000 after buying an additional 11,170 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its holdings 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 buying an additional 229,663 shares during the period. 19.60% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Cricut

Here are the key news stories impacting Cricut this week:

• Positive Sentiment: New product launch: Cricut introduced the Cricut Maker 5, a next-generation smart cutting machine with enhanced cutting and engraving capabilities, support for more materials and a more compact design. The launch could help drive hardware demand and engagement with Cricut’s software and subscription ecosystem. Cricut Introduces Cricut Maker 5
• Positive Sentiment: Improved quantitative outlook: Zacks upgraded CRCT to Rank #1, or “Strong Buy,” citing improving earnings prospects. The stock was also added to Zacks’ Strong Buy lists for momentum, value and income investors, potentially increasing buying interest. Cricut Upgraded to Strong Buy
• Neutral Sentiment: Recent operating results: Cricut’s latest quarterly EPS of $0.19 exceeded the $0.06 consensus estimate, although revenue of roughly $156.3 million fell short of expectations near $160 million. Analysts currently expect approximately $0.32 in full-year EPS.
• Negative Sentiment: CEO continues to sell shares: CEO Ashish Arora sold 60,000 shares for approximately $347,400 at an average price of $5.79. The transaction was made under a pre-arranged Rule 10b5-1 plan, reducing his direct ownership by 1.04%, and follows several similar sales since early August. While planned sales do not necessarily signal deteriorating fundamentals, the repeated insider selling may weigh on sentiment. Cricut CEO Insider Sale
• Negative Sentiment: Bearish analyst backdrop: Morgan Stanley and Goldman Sachs maintain negative ratings, and the broader analyst consensus is “Reduce” with a price target below the recent trading range. This could limit upside despite the favorable Zacks revision.

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.