Ashish Arora, the Chief Executive Officer of Cricut Inc. (NASDAQ:CRCT), a company that InvestingPro analysis shows maintains strong financial health with a 3.16 current ratio and zero debt concerns, recently sold a portion of his holdings in the company. According to a recent SEC filing, Arora disposed of a total of 63,750 shares of Class A Common Stock over three consecutive days, from January 21 to January 23, 2025. The transactions were executed at prices ranging from $5.7529 to $5.857 per share, amounting to a total sale value of approximately $369,818. The stock, which has shown a 23% return over the past year, currently appears undervalued according to InvestingPro’s Fair Value analysis.
Following these transactions, Arora continues to hold 3,694,127 shares directly. Additionally, the filing disclosed an acquisition of 40,787 shares through dividend equivalent restricted stock units, reflecting a recurring semi-annual cash dividend yielding 3.37%. This acquisition did not involve any cash transaction, as these shares were granted in connection with a dividend payout. Get more insights about CRCT’s financial health and 8 additional ProTips with a subscription to InvestingPro.
In other recent news, Cricut, Inc. reported a 4% year-on-year decline in total revenue for Q3 2024, amounting to $167.9 million, during its recent earnings call. Despite the overall dip, the firm noticed a slight uptick in platform revenue and a 5% growth in paid subscribers. Product revenue, however, fell by 7%, mainly due to a decrease in connected machines revenue, attributed to increased promotional activities planned for the holiday season. Operating income witnessed a significant drop of 55% to $10.6 million, but the company managed to maintain a positive net income for the 23rd consecutive quarter.
The company’s international sales saw a 2% growth, constituting 23% of total revenue. Cricut plans to continue investing in marketing and product innovation, backed by a strong balance sheet of $247 million in cash and no debt. It also declared a semi-annual dividend of $0.10 per share, payable in early 2025.
Looking ahead, Cricut anticipates a decline in total sales for the full year. However, the company expects growth in paid subscribers and slight increases in platform revenue. With an aim to improve user engagement and enhance the subscription model, Cricut faces challenges in its product revenue and overall engagement but remains hopeful about its strategic shift towards annual subscriptions and international growth.
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