Cricut (NASDAQ:CRCT) CEO Sells $347,400.00 in Stock

Cricut, Inc. (NASDAQ:CRCT) CEO Ashish Arora sold 60,000 shares of the stock in a transaction dated 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 transaction, the chief executive officer owned 5,717,105 shares of the company’s stock, valued at $33,102,037.95. This represents a 1.04% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Arora Ashish also recently made the following trade(s):

• On Wednesday, August 19th, Ashish Arora sold 60,000 shares of Cricut stock. The stock was sold at an average price of $5.48, for a total transaction of $328,800.00.
• On Monday, August 17th, Ashish Arora sold 60,000 shares of Cricut stock. The stock was sold at an average price of $5.60, for a total transaction of $336,000.00.
• On Wednesday, August 5th, Ashish Arora sold 60,000 shares of Cricut stock. The shares were sold at an average price of $5.98, for a total transaction of $358,800.00.
• On Monday, August 3rd, Ashish Arora sold 60,000 shares of Cricut stock. The shares were sold at an average price of $4.77, for a total transaction of $286,200.00.

Cricut Price Performance

Shares of NASDAQ:CRCT opened at $5.54 on Friday. Cricut, Inc. has a 12 month low of $3.73 and a 12 month high of $6.93. The stock has a market cap of $1.16 billion, a price-to-earnings ratio of 12.88 and a beta of 0.25. The stock’s 50 day moving average price is $5.10 and its 200 day moving average price is $4.54.

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

Institutional Investors Weigh In On Cricut

Institutional investors and hedge funds have recently modified their holdings of the stock. Osaic Holdings Inc. boosted its position in shares of Cricut by 255.9% in the 2nd 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 during the period. Caitong International Asset Management Co. Ltd raised its holdings in Cricut by 57,811.1% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 5,212 shares of the company’s stock worth $26,000 after buying an additional 5,203 shares during the period. Royal Bank of Canada lifted its stake in Cricut by 265.0% during the first quarter. Royal Bank of Canada now owns 8,165 shares of the company’s stock valued at $30,000 after buying an additional 5,928 shares in the last quarter. Guggenheim Capital LLC purchased a new stake in Cricut during the fourth quarter valued at about $55,000. Finally, Orion Porfolio Solutions LLC purchased a new stake in Cricut during the fourth quarter valued at about $63,000. 19.60% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several brokerages have commented on CRCT. Zacks Research upgraded shares of Cricut from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, August 5th. The Goldman Sachs Group started coverage on shares of 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 reaffirmed 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 shares of Cricut from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Reduce” and an average target price of $4.07.

Key Stories 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.

Cricut Company Profile

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.