On August 13, 2024, Arora Ashish, CEO and 10% owner of Cricut Inc (NASDAQ:CRCT), sold 171,424 shares of the company. Following this transaction, the insider now owns 2,596,943 shares of Cricut Inc. The sale was documented in an SEC filing.
Cricut Inc is a company that offers a line of smart cutting machines that allow users to easily create personalized, professional-quality projects. These machines are designed for a variety of DIY activities, including paper crafts, iron-ons, and vinyl decals.
Over the past year, the insider has sold a total of 674,559 shares and made no purchases. This latest transaction is part of a broader trend observed over the past year, when there were 18 insider sales and only one insider purchase.
On the day of the transaction, Cricut Inc. shares were trading at $6.09, giving the company a market capitalization of $1.32 billion. The stock’s price-to-earnings ratio is 18.16, which is below the industry median of 21.85 and also below the company’s historical median.
According to GF Value, an estimate of intrinsic value used by GuruFocus, Cricut Inc. is considered slightly undervalued with a Price to GF Value ratio of 0.85. The GF Value of $7.17 is calculated based on historical trading multiples, an adjustment factor based on past earnings and growth, and estimates of future business performance.
This insider sale could be of interest to investors who track insider behavior and evaluate stock valuation metrics such as price-to-sales ratio, price-to-book ratio and price-to-free cash flow ratio in relation to the current market performance and future prospects of the company.
This article created by GuruFocus is intended to provide general insights and does not constitute tailored financial advice. Our commentary is based on historical data and analyst forecasts, uses an unbiased methodology and is not intended to serve as specific investment advice. It does not contain a recommendation to buy or sell any stock and does not take into account any individual investment objectives or financial circumstances. Our goal is to provide long-term, fundamental, data-driven analysis. Note that our analysis may not include the most recent, price-sensitive company announcements or qualitative information. GuruFocus does not hold a position in any stocks mentioned here.
This article first appeared on GuruFocus.
