CEO, President & Director Of Cricut Sold 77% Of Their Shares

We wouldn't blame Cricut, Inc. (NASDAQ:CRCT) shareholders if they were a little worried about the fact that Ashish Arora, the CEO, President & Director recently netted about US$1.0m selling shares at an average price of US$6.09. Probably the most concerning element of the whole transaction is that the disposal amounted to 77% of their entire holding.

View our latest analysis for Cricut

The Last 12 Months Of Insider Transactions At Cricut

In fact, the recent sale by CEO, President & Director Ashish Arora was not their only sale of Cricut shares this year. Earlier in the year, they fetched US$7.48 per share in a -US$1.9m sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$5.92. So it may not shed much light on insider confidence at current levels.

In total, Cricut insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Cricut

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Cricut insiders own 17% of the company, currently worth about US$216m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Cricut Insiders?

An insider hasn't bought Cricut stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But since Cricut is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 3 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Cricut.

But note: Cricut may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.