Zacks Research Downgrades Cricut (NASDAQ:CRCT) to Hold

Cricut (NASDAQ:CRCT) was downgraded by research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report issued on Monday, Zacks reports.

Several other brokerages also recently commented on CRCT. The Goldman Sachs Group initiated coverage on Cricut in a research report on Wednesday, August 19th. They issued a “sell” rating and a $4.50 price target on the stock. Morgan Stanley reiterated an “underweight” rating and set a $3.70 target price on shares of Cricut in a research note on Wednesday, August 5th. Finally, Weiss Ratings raised shares of Cricut from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, August 6th. Two analysts have rated the stock with a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Strong Sell” and a consensus price target of $4.07.

Cricut Price Performance

NASDAQ CRCT opened at $6.38 on Monday. Cricut has a fifty-two week low of $3.73 and a fifty-two week high of $6.66. The stock’s 50-day moving average is $5.73 and its two-hundred day moving average is $4.80. The firm has a market cap of $1.34 billion, a P/E ratio of 14.84 and a beta of 0.25.

Cricut (NASDAQ:CRCT) last issued 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. Cricut had a return on equity of 24.57% and a net margin of 12.71%.The business had revenue of $156.28 million for the quarter, compared to the consensus estimate of $159.95 million. On average, equities analysts expect that Cricut will post 0.32 EPS for the current year.

Insider Buying and Selling

In related news, CEO Ashish Arora sold 60,000 shares of the company’s stock in a transaction on Monday, October 5th. The stock was sold at an average price of $6.43, for a total value of $385,800.00. Following the completion of the transaction, the chief executive officer directly owned 5,088,740 shares in the company, valued at approximately $32,720,598.20. This represents a 1.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ryan Harmer sold 10,000 shares of the firm’s stock in a transaction on 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 transaction, the insider directly owned 314,428 shares of the company’s stock, valued at approximately $1,792,239.60. This trade represents a 3.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 610,000 shares of company stock valued at $3,504,600 in the last quarter. Corporate insiders own 16.48% of the company’s stock.

Institutional Trading of Cricut

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP raised its position in Cricut by 30.4% in the first quarter. Dimensional Fund Advisors LP now owns 985,868 shares of the company’s stock worth $3,687,000 after purchasing an additional 229,663 shares in the last quarter. Renaissance Technologies LLC boosted its holdings in Cricut by 2.7% during the first quarter. Renaissance Technologies LLC now owns 879,143 shares of the company’s stock valued at $3,288,000 after purchasing an additional 23,300 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in Cricut during the second quarter valued at approximately $2,409,000. Empowered Funds LLC grew its stake in shares of Cricut by 18.1% in the 1st quarter. Empowered Funds LLC now owns 420,595 shares of the company’s stock valued at $1,573,000 after purchasing an additional 64,362 shares during the period. Finally, Bank of America Corp DE raised its holdings in shares of Cricut by 124.4% in 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 in the last quarter. Institutional investors own 19.60% of the company’s stock.

Cricut Company Profile

Cricut, Inc develops and sells digital crafting technology that enables users to design, make and personalize projects. Its ecosystem includes connected cutting, heat-press, engraving and other crafting machines, along with the company’s Design Space software, which allows users to create projects, prepare designs and operate compatible devices.

The company also offers a broad selection of consumable materials and accessories, including vinyl, iron-on materials, paper, specialty fabrics, cutting tools, replacement components and related crafting supplies.