Cricut (NASDAQ:CRCT) Trading Down 6% After Analyst Downgrade

Shares of Cricut, Inc. (NASDAQ:CRCT) fell 6% on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $3.50 to $3.00. The Goldman Sachs Group currently has a sell rating on the stock. Cricut traded as low as $4.68 and last traded at $4.6550. 205,717 shares changed hands during mid-day trading, a decline of 55% from the average session volume of 459,179 shares. The stock had previously closed at $4.95.

Several other research firms have also recently issued reports on CRCT. Wall Street Zen cut Cricut from a “buy” rating to a “hold” rating in a report on Saturday, November 29th. Weiss Ratings restated a “hold (c-)” rating on shares of Cricut in a research report on Monday, December 29th. One analyst has rated the stock with a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Strong Sell” and an average target price of $3.60.

Insider Buying and Selling at Cricut

In related news, CEO Arora Ashish sold 20,833 shares of the business’s stock in a transaction dated Wednesday, January 7th. The stock was sold at an average price of $4.93, for a total value of $102,706.69. Following the completion of the transaction, the chief executive officer owned 4,177,922 shares of the company’s stock, valued at $20,597,155.46. The trade was a 0.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In the last ninety days, insiders sold 278,435 shares of company stock worth $1,377,286. Corporate insiders own 18.02% of the company’s stock.

Institutional Trading of Cricut

A number of hedge funds have recently added to or reduced their stakes in CRCT. Osaic Holdings Inc. boosted its stake in shares of 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 purchasing an additional 2,620 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in Cricut in the 3rd quarter valued at approximately $68,000. Olympiad Research LP bought a new position in shares of Cricut during the third quarter valued at $74,000. Mitsubishi UFJ Trust & Banking Corp acquired a new position in shares of Cricut during the third quarter worth $75,000. Finally, RFG Advisory LLC bought a new position in Cricut during the 3rd quarter worth $75,000. Institutional investors and hedge funds own 19.60% of the company’s stock.

Cricut Stock Performance

The company has a fifty day simple moving average of $4.90 and a 200 day simple moving average of $5.46. The stock has a market capitalization of $960.24 million, a price-to-earnings ratio of 11.99 and a beta of 0.17.

Cricut (NASDAQ:CRCT) last released its earnings results on Wednesday, November 5th. The company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.05. The business had revenue of $170.44 million for the quarter, compared to analyst estimates of $156.93 million. Cricut had a net margin of 11.31% and a return on equity of 19.91%. As a group, equities analysts predict that Cricut, Inc. will post 0.28 earnings per share for the current fiscal year.

Cricut Announces Dividend

The business also recently declared a dividend, which will be paid on Tuesday, January 20th. Investors of record on Tuesday, January 6th will be given a $0.10 dividend. This represents a yield of 412.0%. The ex-dividend date of this dividend is Tuesday, January 6th. Cricut’s dividend payout ratio is presently 52.63%.

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.