Cricut (NASDAQ:CRCT) Shares Down 4.5% After Insider Selling

Cricut, Inc. (NASDAQ:CRCT)’s stock price dropped 4.5% during trading on Friday following insider selling activity. The company traded as low as $5.60 and last traded at $5.5850. Approximately 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 Cricut stock in a transaction on 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 directly owned 5,717,105 shares of the company’s stock, valued at approximately $33,102,037.95. This trade represents a 1.04% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

CRCT has been the topic of several recent research reports. Morgan Stanley reiterated an “underweight” rating and issued a $3.70 price target on shares of Cricut in a 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 target price on the stock. Weiss Ratings raised shares of Cricut from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, August 6th. Finally, Zacks Research upgraded shares of Cricut from a “hold” rating to a “strong-buy” rating in a research 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 company. Based on data from MarketBeat, Cricut currently has an average rating of “Reduce” and a consensus price target of $4.07.

Cricut Trading Down 4.5%

The company has a market capitalization of $1.17 billion, a P/E ratio of 13.01 and a beta of 0.25. The business has a 50 day moving average price of $5.08 and a 200 day moving average price of $4.54.

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP grew its position in shares of Cricut by 30.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 985,868 shares of the company’s stock valued at $3,687,000 after purchasing an additional 229,663 shares during the period. Bank of New York Mellon Corp bought a new stake in Cricut during the 2nd quarter worth approximately $2,409,000. Bank of America Corp DE raised its holdings in Cricut by 124.4% during the 1st quarter. Bank of America Corp DE now owns 116,790 shares of the company’s stock worth $437,000 after buying an additional 64,737 shares during the period. Royal Bank of Canada lifted its stake in Cricut by 265.0% in 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. Finally, Empowered Funds LLC lifted its stake in Cricut by 18.1% in the first quarter. Empowered Funds LLC now owns 420,595 shares of the company’s stock valued at $1,573,000 after buying an additional 64,362 shares in the last quarter. 19.60% of the stock is 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.