Cricut Shares Face Mounting Pressure Despite Brief Rally

A fleeting uptick on Tuesday failed to reverse the significant downward momentum surrounding Cricut, the creative technology firm. A combination of insider selling, a disregarded earnings report, and overwhelmingly negative analyst sentiment paints a concerning outlook for the stock.

While shares managed a 2.09% gain to close at $4.88 on Tuesday with elevated trading volume, this technical bounce offers little long-term comfort. The stock continues to trade far below its 52-week high of $7.33, underscoring a persistent negative trend. The minor recovery witnessed over the past fortnight does little to alter the dominant bearish narrative, leaving investors to ponder not if but how much further the equity could decline.

Management Selling Raises Red Flags

Notably, substantial sales by the company's own executives have alarmed the market. In a series of transactions at the end of November 2025, CEO Ashish Arora disposed of more than 20,000 shares, valued at nearly $100,000. Although executed under a pre-arranged 10b5-1 trading plan, such moves are frequently interpreted by investors as a lack of confidence from leadership in the company's near-term prospects. Additional sales by insiders occurred in the preceding days, compounding these concerns.

Should investors sell immediately? Or is it worth buying Cricut?

Strong Quarterly Results Fall on Deaf Ears

Paradoxically, Cricut's operational performance for Q3 2025 was robust. The company reported earnings per share of $0.10, soundly beating the $0.04 consensus estimate. Revenue reached $170.4 million, exceeding forecasts, while the gross margin saw strong improvement to 55.2%. Furthermore, its community of paid subscribers grew beyond 3 million. Despite these solid metrics, investor reaction was muted, signaling that anxieties about future prospects are outweighing satisfaction with past performance.

Analyst Consensus Delivers a Stark "Strong Sell" Verdict

The view from Wall Street research desks is unequivocal. The prevailing consensus rating for Cricut is "Strong Sell." The average price target sits at just $4.18, implying a potential further loss of nearly 12% over the coming year, with some analysts projecting a drop to $3.80. In October, investment bank Goldman Sachs downgraded the stock from "Neutral" to "Sell," assigning a $4.75 price target.

• Unified Stance: The majority of market strategists are advising clients to sell their positions.
• Depressed Targets: The average price point forecasts a double-digit percentage decline.
• Prevailing Sentiment: The overall market mood remains decidedly bearish.