Cricut (CRCT) | News Based Sentiment Analysis

• On October 2, 2025, Cricut Inc. (CRCT) stock experienced a slight decrease, falling by -0.158% to close at $6.32, with trading volume increasing to 736,000 shares ($4.65 million). While a pivot top sell signal from September 22, 2025, and the MACD indicator suggested caution, the short-term moving average remaining above the long-term average offered a positive counterpoint.
• Institutional investor activity was mixed during Q1 2025, with Voya Investment Management LLC reducing its stake by 12.6%, but Strs Ohio initiating a new $333,000 position. Overall, institutional investors collectively own 19.60% of Cricut’s stock, indicating continued, though fluctuating, interest.
• Insider selling continued to be a notable trend, with insiders selling 401,650 shares ($2,390,480) over the last 90 days. CEO Arora Ashish notably sold 60,000 shares on July 7 at $6.25, totaling $375,000, and Matt Tuttle decreased his ownership by 10.95% through a sale of 40,491 shares on August 8.
• Despite recent stock fluctuations, Cricut exceeded expectations in its quarterly report on August 5, 2025, reporting an EPS of $0.11, an 83.33% beat against an estimated $0.06. Revenue also surpassed estimates, reaching $172.11 million compared to the expected $158.59 million.
• Wall Street Zen downgraded Cricut from a “buy” to a “hold” rating on September 5, 2025, with a consensus price target of $4.52, representing a -28.53% downside from the $6.32 price on October 2, 2025. Analyst price targets ranged from $3.80 to $5.75, reflecting a generally cautious outlook.
• Cricut currently holds a Zacks Rank of #2 (Buy), supported by a Value Score of A, a Growth Score of B, and a Momentum Score of B. Shares have gained 8.4% in the past month, suggesting some positive investor sentiment despite the downgrade.

The Investment Story: October presented a mixed bag for Cricut, with strong earnings overshadowed by insider selling, an analyst downgrade, and fluctuating stock performance. The company continues to demonstrate revenue growth, but investor confidence appears tempered.

What It Means for Investors: The combination of positive earnings and negative sentiment creates a complex picture. While the company is performing well financially, the insider sales and analyst downgrade suggest potential headwinds. Investors should carefully weigh the company’s growth potential against these risks.

Looking Ahead: Investors should monitor institutional activity and insider trading patterns closely. The next earnings report will be crucial in determining whether Cricut can sustain its growth momentum and regain investor confidence.

The Bottom Line: Cricut remains a potentially attractive growth stock, but the recent negative signals warrant caution. Investors should closely monitor the company’s performance and market sentiment before making any investment decisions.