Cricut (NASDAQ:CRCT) Sets New 52-Week High on Strong Earnings

Cricut, Inc. (NASDAQ:CRCT) shares reached a new 52-week high on Wednesday following a better than expected earnings announcement. The company traded as high as $7.00 and last traded at $7.0160, with a volume of 15,177 shares changing hands. The stock had previously closed at $5.97.

The company reported $0.13 earnings per share for the quarter, topping analysts’ consensus estimates of $0.05 by $0.08. Cricut had a net margin of 12.71% and a return on equity of 24.57%. The business had revenue of $188.62 million for the quarter, compared to analyst estimates of $172.02 million.

Analysts Set New Price Targets

Several research firms have commented on CRCT. The Goldman Sachs Group initiated coverage on shares of Cricut in a research note on Wednesday, August 19th. They issued a “sell” rating and a $4.50 target price for the company. Zacks Research downgraded Cricut from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Morgan Stanley reiterated an “underweight” rating and set a $3.70 price target on shares of Cricut in a report on Wednesday, August 5th. Finally, Weiss Ratings upgraded shares of Cricut from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday. Two investment analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, Cricut has an average rating of “Strong Sell” and a consensus target price of $4.07.

Insider Transactions at Cricut

In related news, CEO Ashish Arora sold 60,000 shares of Cricut stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $5.48, for a total transaction of $328,800.00. Following the completion of the transaction, the chief executive officer owned 4,027,105 shares of the company’s stock, valued at $22,068,535.40. This trade represents a 1.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 610,000 shares of company stock worth $3,613,800. 16.48% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Cricut

Large investors have recently bought and sold shares of the stock. Royal Bank of Canada grew its stake in shares of Cricut by 265.0% during the 1st quarter. Royal Bank of Canada now owns 8,165 shares of the company’s stock worth $30,000 after acquiring an additional 5,928 shares during the period. Signaturefd LLC bought a new stake in Cricut during the third quarter worth about $43,000. Ethic Inc. bought a new position in Cricut in the 3rd quarter valued at approximately $71,000. AXQ Capital LP bought a new stake in shares of Cricut during the 2nd quarter valued at about $74,000. Finally, Walleye Capital LLC bought a new position in shares of Cricut in the first quarter worth approximately $100,000. 19.60% of the stock is currently owned by institutional investors.

Cricut Stock Up 30.3%

The company’s 50 day moving average is $6.07 and its two-hundred day moving average is $4.87. The company has a market capitalization of $1.63 billion, a PE ratio of 17.90 and a beta of 0.24.

About Cricut

Cricut, Inc develops and sells connected cutting machines and related products for do-it-yourself crafting, personalization and small-scale creative production. Its systems are designed to cut, draw, score and apply materials such as paper, vinyl, fabric, leather and iron-on transfers, enabling users to create customized home décor, apparel, gifts and other projects.

The company’s product portfolio includes Cricut smart cutting machines, heat presses, specialized tools and a broad range of consumable materials.