Ashish Arora, the Chief Executive Officer of Cricut , Inc. (NASDAQ:CRCT), recently sold a significant number of shares in the company. According to a recent SEC filing, Arora sold a total of 78,095 shares of Cricut's Class A Common Stock over two days, on November 25 and November 26, 2024. The transactions were executed at weighted average prices ranging from $5.2893 to $5.2959 per share, amounting to a total sale value of approximately $413,221.
These sales were made under a Rule 10b5-1 trading plan, which Arora had adopted on August 19, 2024. Following these transactions, Arora retains direct ownership of 3,957,038 shares in the company.
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CRCT
0. Management has been aggressively buying back shares
CRCT
1. Holds more cash than debt on its balance sheet
CRCT
2. 2 analysts have revised their earnings upwards for the upcoming period
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3. Trading at a low P/E ratio relative to near-term earnings growth
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4. Valuation implies a strong free cash flow yield
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5. Stock has fared poorly over the last month
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6. Cash flows can sufficiently cover interest payments
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7. Liquid assets exceed short term obligations
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8. Analysts predict the company will be profitable this year
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9. Profitable over the last twelve months
InvestingPro Data:
Market Cap (Adjusted) -: 1110M USD
CRCT
P/E Ratio -: 17.75
CRCT
P/E Ratio (Adjusted) LTM2024.Q3 -: 15.76
CRCT
PEG Ratio LTM2024.Q3 -: 0.89
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Price / Book LTM2024.Q3 -: 2.33
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Revenue LTM2024.Q3 -: 734.48M USD
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Revenue Growth LTM2024.Q3 -: -9.84 %
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Revenue Growth (Quarterly) FY2024.Q3 -: -4.01 %
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Gross Profit LTM2024.Q3 -: 355.83M USD
CRCT
Gross Profit Margin LTM2024.Q3 -: 48.45 %
CRCT
Operating Income, Adjusted LTM2024.Q3 -: 89.61M USD
CRCT
Operating Income Margin LTM2024.Q3 -: 12.2 %
CRCT
EBIT LTM2024.Q3 -: 89.61M USD
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EBITDA LTM2024.Q3 -: 119.88M USD
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EBITDA Growth LTM2024.Q3 -: 22.49 %
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Basic EPS (Cont. Ops) LTM2024.Q3 -: 0.29 USD
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Diluted EPS (Cont. Ops) LTM2024.Q3 -: 0.29 USD
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Return on Assets LTM2024.Q3 -: 9.0 %
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Dividend Yield Y2024.D332 -: 3.87 %
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Ex-Date of Last Dividend Y2024.D332 -: 2024-07-02
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1 Week Price Total (EPA:TTEF) Return Y2024.D332 -: 1.37 %
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1 Month Price Total Return Y2024.D332 -: -20.46 %
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3 Month Price Total Return Y2024.D332 -: -10.4 %
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6 Month Price Total Return Y2024.D332 -: -6.24 %
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YTD Price Total Return Y2024.D332 -: -13.78 %
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1 Year Price Total Return Y2024.D332 -: -18.01 %
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Price % of 52 Week High -: 66.24 %
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Price, Previous Close -: 5.17 USD
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Average Daily Volume (3m) Y2024.D332 -: 0.35M USD
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Next (LON:NXT) Earnings Date -: 2025-03-11
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Fair Value (Analyst Targets) Y2024.D332 -: 4.88 USD
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InvestingPro Fair Value -: 6.31 USD
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Article to enrich:
Ashish Arora, the Chief Executive Officer of Cricut, Inc. (NASDAQ:CRCT), recently sold a significant number of shares in the company. According to a recent SEC filing, Arora sold a total of 78,095 shares of Cricut's Class A Common Stock over two days, on November 25 and November 26, 2024. The transactions were executed at weighted average prices ranging from $5.2893 to $5.2959 per share, amounting to a total sale value of approximately $413,221.
These sales were made under a Rule 10b5-1 trading plan, which Arora had adopted on August 19, 2024. Following these transactions, Arora retains direct ownership of 3,957,038 shares in the company.
Cricut, Inc. is a creative technology company that designs and markets a creativity platform that enables users to turn ideas into professional-looking handmade goods. The company offers a connected machine that cuts, writes, and creates on various materials, accompanied by design apps, subscriptions, and accessories.
The recent insider sale by the CEO might raise questions among investors about the company's future prospects. However, it's important to note that insider transactions can occur for various reasons and don't always reflect the executive's view of the company's potential.
Investors should consider this insider activity as one of many factors in their overall assessment of Cricut, Inc. It's advisable to look at the company's fundamentals, market position, and growth prospects before making investment decisions.
The stock market often reacts to insider sales, especially those made by high-ranking executives like CEOs. As such, it will be interesting to observe how Cricut's stock price responds to this news in the coming trading sessions.
In other recent news, Cricut Inc. reported a 4% decline in total revenue for Q3 2024, amounting to $167.9 million. Despite a decrease in overall revenue, the company saw a slight uptick in platform revenue and a 5% growth in paid subscribers. However, product revenue fell by 7%, primarily due to a drop in connected machines revenue, which the company attributes to increased promotional activities for the holiday season. Operating income decreased by 55% to $10.6 million, but the company maintained a positive net income for the 23rd consecutive quarter.
These are recent developments for the creative technology company. Cricut also reported a decrease in gross margin and a significant drop in operating income. Despite these challenges, the company maintains a strong balance sheet with $247 million in cash and no debt. The company also declared a semi-annual dividend of $0.10 per share, payable in January 2025.
Looking ahead, Cricut is optimistic about its strategic shift towards annual subscriptions and international growth. The company aims to improve user engagement and enhance the subscription model, with growth in paid subscribers and slight increases in platform revenue expected. With a solid cash position and no debt, Cricut is poised to invest in marketing and product innovation to drive future growth.
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