Cricut (NASDAQ:CRCT) Shares Gap Up Following Earnings Beat

Shares of Cricut, Inc. (NASDAQ:CRCT) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $5.01, but opened at $5.41. Cricut shares last traded at $4.9950, with a volume of 285,989 shares traded.

The company reported $0.10 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.05 by $0.05. Cricut had a return on equity of 16.49% and a net margin of 10.09%.The firm had revenue of $170.40 million for the quarter, compared to analyst estimates of $156.93 million.

Cricut Dividend Announcement

The firm also recently declared a dividend, which will be paid on Tuesday, January 20th. Shareholders of record on Tuesday, January 6th will be paid a $0.10 dividend. This represents a yield of 399.0%. The ex-dividend date of this dividend is Tuesday, January 6th. Cricut’s dividend payout ratio (DPR) is presently 60.61%.

Wall Street Analysts Forecast Growth

CRCT has been the topic of several research analyst reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Cricut in a research note on Wednesday, October 8th. The Goldman Sachs Group lowered Cricut from a “neutral” rating to a “sell” rating and reduced their price objective for the company from $5.50 to $4.75 in a research note on Thursday, October 16th. Finally, Wall Street Zen lowered Cricut from a “buy” rating to a “hold” rating in a research note on Saturday, October 18th. One equities research analyst has rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Strong Sell” and an average target price of $4.18.

Insider Transactions at Cricut

In other Cricut news, CEO Arora Ashish sold 17,204 shares of the stock in a transaction that occurred on Friday, October 17th. The shares were sold at an average price of $5.27, for a total value of $90,665.08. Following the completion of the sale, the chief executive officer owned 2,668,146 shares of the company’s stock, valued at $14,061,129.42. This trade represents a 0.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders have sold a total of 337,826 shares of company stock valued at $1,972,877 over the last three months. 18.02% of the stock is owned by company insiders.

Institutional Trading of Cricut

Several large investors have recently bought and sold shares of CRCT. Osaic Holdings Inc. increased its holdings in Cricut by 255.9% during the 2nd quarter. Osaic Holdings Inc. now owns 3,644 shares of the company’s stock worth $25,000 after purchasing an additional 2,620 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH purchased a new stake in Cricut during the 3rd quarter worth approximately $68,000. MQS Management LLC purchased a new stake in Cricut during the 1st quarter worth approximately $59,000. Olympiad Research LP purchased a new stake in Cricut during the 3rd quarter worth approximately $74,000. Finally, Vanguard Personalized Indexing Management LLC purchased a new stake in Cricut during the 2nd quarter worth approximately $80,000. Institutional investors and hedge funds own 19.60% of the company’s stock.

Cricut Stock Performance

The firm has a fifty day simple moving average of $5.85 and a 200-day simple moving average of $5.83. The company has a market capitalization of $1.04 billion, a PE ratio of 15.10 and a beta of 0.17.

Cricut Company Profile

Cricut, Inc engages in the design, marketing, and distribution of a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates through three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations.