Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Don Olsen, EVP at Cricut (NASDAQ:CRCT), executed a substantial insider sell on May 13, according to an SEC filing.
What Happened: Olsen's recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled the sale of 25,000 shares of Cricut. The total transaction value is $176,150.
In the Tuesday's morning session, Cricut's shares are currently trading at $7.5, experiencing a up of 4.53%.
About Cricut Cricut Inc designs and builds a creativity platform that enables users to turn ideas into professional-looking handmade goods. With its connected machines, design apps and accessories, and materials, the users create everything from personalized birthday cards, mugs, and T-shirts to large-scale interior decorations. It derives revenues from three segments including the Connected machines engaged in the sale of its connected machine hardware and related essential software, the Subscriptions segment provides monthly and annual subscription fees, and the Accessories and Materials segment provides craft, DIY, home decor products and heat presses including the Cricut EasyPress, Cricut Mug Press, and Cricut Autopress.
Cricut: Financial Performance Dissected Revenue Growth: Cricut's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -7.63%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Holistic Profitability Examination:
- Gross Margin: Achieving a high gross margin of 54.72%, the company performs well in terms of cost management and profitability within its sector.
- Earnings per Share (EPS): Cricut's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 0.09.
Understanding Financial Valuation:
- Price to Earnings (P/E) Ratio: Cricut's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 24.72.
- Price to Sales (P/S) Ratio: The current P/S ratio of 2.09 is above industry norms, reflecting an elevated valuation for Cricut's stock and potential overvaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 10.18, Cricut presents a potential value opportunity, as investors are paying less for each unit of EBITDA.
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Uncovering the Importance of Insider Activity It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
Transaction Codes Worth Your Attention Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Cricut's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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