Cricut stock (US22676R1077): Goldman Sachs maintains sell rating as shares gain

Cricut Inc shares rose 1.40% on Monday, May 11, 2026, closing at $4.36 after trading at $4.30 the previous session, according to market data. The gain came as Goldman Sachs maintained a sell rating on the design software and cutting machine maker, though the bank adjusted its price target upward from $3.25 to $3.75, according to TipRanks as of May 2026.

As of: May 12, 2026

By the editorial team – specialized in equity coverage.

Cricut Inc: core business model

Cricut operates as a consumer electronics and software company, providing cutting machines and design software for crafting, small business, and creative professionals. The company generates revenue through hardware sales, subscription services, and a marketplace for design files. Cricut's primary customer base includes hobbyists, small business owners, and educational institutions across North America and internationally.

Main revenue and product drivers for Cricut

The company's revenue streams include Cricut cutting machines at various price points, Cricut Design Space software subscriptions, and Cricut Access memberships that provide unlimited design downloads and project inspiration. Retail partnerships and direct-to-consumer channels through the company website represent key distribution methods. The subscription model provides recurring revenue, while hardware sales drive customer acquisition and ecosystem engagement.

Analyst perspective and valuation

Goldman Sachs analyst Eric Sheridan, who maintains a 48.2% success rate according to TipRanks data, kept the sell rating despite raising the price target. The $3.75 target implies downside risk from the May 11 closing price of $4.36, suggesting the analyst expects further pressure on the stock. The rating adjustment reflects ongoing concerns about the company's profitability and market position, even as the bank acknowledged modest upside to its previous $3.25 target.

Conclusion

Cricut shares gained modestly on May 11, 2026, though Goldman Sachs' maintained sell rating and $3.75 price target suggest caution for investors. The analyst's upward target adjustment reflects some recognition of value, yet the sell recommendation indicates structural concerns about the company's competitive position and profitability outlook. Investors should monitor upcoming earnings reports and management guidance for clarity on the company's strategic direction and financial performance.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.