Cricut (NASDAQ:CRCT) Shares Gap Down Following Weak Earnings

Cricut, Inc. (NASDAQ:CRCT - Get Free Report) gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $6.57, but opened at $5.95. Cricut shares last traded at $6.29, with a volume of 68,301 shares changing hands.

The company reported $0.05 EPS for the quarter, missing analysts' consensus estimates of $0.07 by ($0.02). Cricut had a net margin of 9.16% and a return on equity of 13.18%. The firm had revenue of $167.89 million for the quarter, compared to the consensus estimate of $165.35 million. During the same quarter in the prior year, the company earned $0.08 earnings per share.

Wall Street Analyst Weigh In

Separately, The Goldman Sachs Group lowered their price objective on shares of Cricut from $6.50 to $5.75 and set a "neutral" rating on the stock in a research note on Wednesday.

Insiders Place Their Bets

In related news, EVP Donald B. Olsen sold 40,000 shares of the company's stock in a transaction that occurred on Thursday, August 29th. The stock was sold at an average price of $5.74, for a total value of $229,600.00. Following the sale, the executive vice president now owns 655,833 shares in the company, valued at $3,764,481.42. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In other news, EVP Donald B. Olsen sold 40,000 shares of the company's stock in a transaction that occurred on Thursday, August 29th. The stock was sold at an average price of $5.74, for a total transaction of $229,600.00. Following the completion of the transaction, the executive vice president now directly owns 655,833 shares of the company's stock, valued at $3,764,481.42. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Arora Ashish sold 77,823 shares of the stock in a transaction on Friday, August 9th. The shares were sold at an average price of $6.37, for a total value of $495,732.51. Following the completion of the transaction, the chief executive officer now directly owns 2,690,544 shares of the company's stock, valued at approximately $17,138,765.28. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 267,112 shares of company stock worth $1,599,515. 18.02% of the stock is owned by corporate insiders.

Institutional Trading of Cricut

Several hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its holdings in Cricut by 10.9% during the 1st quarter. Vanguard Group Inc. now owns 3,658,790 shares of the company's stock worth $17,416,000 after buying an additional 360,080 shares during the last quarter. Susquehanna Fundamental Investments LLC purchased a new position in shares of Cricut in the 1st quarter valued at about $758,000. American Century Companies Inc. increased its holdings in shares of Cricut by 42.7% in the 2nd quarter. American Century Companies Inc. now owns 453,014 shares of the company's stock valued at $2,714,000 after acquiring an additional 135,539 shares during the last quarter. Algert Global LLC purchased a new position in shares of Cricut in the 2nd quarter valued at about $558,000. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Cricut by 217.5% in the 2nd quarter. Dimensional Fund Advisors LP now owns 92,139 shares of the company's stock valued at $552,000 after acquiring an additional 63,116 shares during the last quarter. Institutional investors and hedge funds own 19.60% of the company's stock.

Cricut Trading Down 15.2 %

The firm has a market cap of $1.21 billion, a PE ratio of 18.39 and a beta of 0.13. The business has a fifty day moving average price of $6.36 and a 200 day moving average price of $6.21.

About Cricut

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.