Stock of the Day

June 28, 2023

Cricut (CRCT)

$6.70
+$0.21 (+3.2%)
Market Cap: $1.36B

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. Its connected machines include Cricut Joy family for personalization, organization, and customization; Cricut Explore family for cutting, writing, and scoring; Cricut Maker family for cutting, writing, scoring, and adding decorative effects to various materials, such as paper, vinyl, iron-on vinyl, pens, and others; and Cricut Venture for cutting, writing, and scoring large-format projects at professional speeds. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps comprising Cricut Joy App, Design Space, and other design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, hand tools, machine replacement tools and blades, and project materials. The company offers its products through its third-party brick-and-mortar and online retail partners; and its website cricut.com, as well as through a network of distributors. It operates in the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand, and Western Europe, as well as the Middle East, Latin America, South Africa, and Asia. The company was formerly known as Provo Craft & Novelty, Inc. and changed its name to Cricut, Inc. in March 2018. The company was incorporated in 1969 and is headquartered in South Jordan, Utah.

Today's Trend

Cricut, Inc. (NASDAQ: CRCT) is receiving mixed signals. Recent optimism around its product pipeline and earnings outlook may support the stock, while repeated insider selling and a bearish analyst consensus remain potential headwinds.

  • New product launch: Cricut introduced the Cricut Maker 5, a next-generation smart cutting machine with enhanced cutting and engraving capabilities, support for more materials and a more compact design. The launch could help drive hardware demand and engagement with Cricut’s software and subscription ecosystem. Cricut Introduces Cricut Maker 5
  • Improved quantitative outlook: Zacks upgraded CRCT to Rank #1, or “Strong Buy,” citing improving earnings prospects. The stock was also added to Zacks’ Strong Buy lists for momentum, value and income investors, potentially increasing buying interest. Cricut Upgraded to Strong Buy
  • Recent operating results: Cricut’s latest quarterly EPS of $0.19 exceeded the $0.06 consensus estimate, although revenue of roughly $156.3 million fell short of expectations near $160 million. Analysts currently expect approximately $0.32 in full-year EPS.
  • CEO continues to sell shares: CEO Ashish Arora sold 60,000 shares for approximately $347,400 at an average price of $5.79. The transaction was made under a pre-arranged Rule 10b5-1 plan, reducing his direct ownership by 1.04%, and follows several similar sales since early August. While planned sales do not necessarily signal deteriorating fundamentals, the repeated insider selling may weigh on sentiment. Cricut CEO Insider Sale
  • Bearish analyst backdrop: Morgan Stanley and Goldman Sachs maintain negative ratings, and the broader analyst consensus is “Reduce” with a price target below the recent trading range. This could limit upside despite the favorable Zacks revision.
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