Exploring Cricut, Inc. (CRCT) Investor Profile: Who’s Buying and Why?

You're looking at Cricut, Inc. (CRCT) and wondering why the stock price is still struggling, even after they delivered a solid Q3 2025 earnings report. Honestly, it's a classic disconnect: the business is performing, but the market's worried about the future. The company just posted a revenue of $170.4 million, and net income surged 79% year-over-year to $20.5 million, plus they've now crossed 3 million paid subscribers, which is a huge milestone for platform stability. But here's the quick math: institutions-the big money-own about 69% of the company, and their moves, especially from heavy hitters like Vanguard Group Inc. and BlackRock, Inc., are what truly drive the price action, not just the quarterly beat. So, are the institutions buying the long-term subscription story, or are they getting spooked by tariff uncertainty and modest 2% top-line growth? We need to defintely dig into who is holding the shares and what their specific investment thesis is to see if this is a buying opportunity or a value trap.

Who Invests in Cricut, Inc. (CRCT) and Why?

If you're looking at Cricut, Inc. (CRCT), you're looking at a company with a very distinct investor base. The direct takeaway is this: the ownership structure is heavily concentrated, dominated by a single trust, but the remaining float attracts a mix of passive institutional funds and active managers drawn to the company's subscription-based platform growth and improving margins.

You need to understand who holds the power here. The vast majority of shares-an enormous 57.87% as of March 2025-is held by Petrus Trust Company, LTA, which is the key controlling stakeholder. This means the publicly traded shares, or the float, are a smaller pool than you might see in other companies, so any large move by institutional investors can have an outsized impact on the stock price.

Key Investor Types: The Ownership Breakdown

The investor profile for Cricut, Inc. breaks down into three main groups: the controlling trust, large institutional players, and the more active hedge funds and retail investors. This isn't a typical broad-based ownership story; it's concentrated power plus passive indexing.

• Controlling Stakeholder: Petrus Trust Company, LTA, holds the majority, making them the defintely dominant voice in strategic decisions.
• Institutional Investors: These are the big, passive money managers. As of the end of Q3 2025, firms like Vanguard Group Inc and BlackRock, Inc. are among the largest holders, with Vanguard owning around 4.73 million shares and BlackRock, Inc. holding approximately 3.61 million shares. They hold Cricut, Inc. largely because it's a component of the small-cap indexes their funds track, like the Russell 2000.
• Hedge Funds and Active Managers: Hedge funds and other institutional investors own about 19.60% of the stock. These groups are more tactical, using the company's improving profitability and subscription growth as a short-to-medium-term catalyst. Citadel Advisors LLC is one of the more notable active funds holding a position.

Insiders, including executives and board members, also own a significant chunk-about 18.61% of the stock, which aligns management's interests with long-term performance.

Investment Motivations: Why They're Buying CRCT

Investors aren't buying Cricut, Inc. for explosive top-line growth right now; they're buying for margin expansion, a sticky subscription model, and financial stability. Here's the quick math on the attraction:

The company's Q3 2025 results show a clear shift: total revenue was $170.4 million (only up 2% year-over-year), but net income surged 79% to $20.5 million. That kind of profitability improvement is a major magnet for value-oriented investors.

The subscription business is the key driver of stability. With over 3 million paid subscribers, that recurring revenue stream provides a predictable floor, which is something large institutions love in a volatile market.

Typical Investment Strategies in Play

What you see in Cricut, Inc.'s ownership is a reflection of its business model: a mature hardware base feeding a growing, high-margin software and materials business. You can read more about this in Breaking Down Cricut, Inc. (CRCT) Financial Health: Key Insights for Investors.

The strategies are simple but distinct:

• Long-Term Holding (Passive): Funds like Vanguard Group Inc are essentially permanent holders, buying to match the index weight, not to trade on quarterly news. This provides a constant, stable demand for the stock.
• Value Investing: Active managers are looking at the company's strong balance sheet (debt-free) and the significant margin expansion. They see a stock that is undervalued relative to its cash generation and improving profitability.
• Growth-at-a-Reasonable-Price (GARP): This strategy is focused on the platform business. While hardware sales are soft, the 7% growth in platform revenue and the 6% increase in paid subscribers signals a durable, high-margin growth engine that justifies a higher multiple than a pure hardware company.

The biggest risk to the active investors is the concentration of power with the controlling trust, plus the near-term headwind of modest overall revenue growth. Still, the company's ability to generate cash from operations-it generated $61.2 million in Q1 2025 alone-keeps the value thesis strong.

Your next step should be to compare the stock's current valuation multiples (like Price-to-Earnings) against that 79% net income increase to see if the market is accurately pricing in the profitability gains.

Institutional Ownership and Major Shareholders of Cricut, Inc. (CRCT)

If you're looking at Cricut, Inc. (CRCT), you need to know who the big money is-the institutional investors-because they hold the majority of the stock and, honestly, they drive the price action. Institutional investors, like mutual funds and pension funds, own roughly 43.23% of the company's float, but the real story is the massive block held by a single entity, which gives them majority control.

Understanding this ownership structure is defintely key to mapping out the stock's near-term risks and opportunities. Here's the quick math: when institutions own this much, their collective buying or selling can create serious volatility, especially in a smaller-cap stock like Cricut, Inc.

Top Institutional Investors and Their Stakes

When we look at the pure institutional money-the index funds and active managers-Vanguard Group Inc. and BlackRock, Inc. are the two largest players. They are passive giants, meaning they hold the stock largely because it's in a benchmark index, but their sheer size makes them influential. As of the Q3 2025 reporting period, these firms hold significant positions.

What this estimate hides, though, is the single, controlling shareholder: Petrus Trust Company, LTA. This entity holds a staggering block of shares, giving it a 58% stake in the company, which is majority interest control. This kind of concentration means that while the public float is traded by the institutions below, the company's long-term strategic direction is largely dictated by this single, major block holder.

Here are the top institutional holders, based on the most recent 13F filings for the fiscal year 2025:

Recent Changes in Institutional Ownership

The institutional activity in the third quarter of 2025 was a mix, but the overall sentiment leans toward accumulation from the largest index players. For example, Vanguard Group Inc. increased its position by 3.58% in Q3 2025, adding 163,602 shares. BlackRock, Inc. also added to its stake, increasing its holdings by 146,234 shares during the same period.

But it wasn't all buying. Some active managers were clearly taking profits or cutting exposure. JPMorgan Chase & Co., for instance, decreased its stake by 16.4% as of November 7, 2025. Still, other firms showed strong conviction, like Victory Capital Management Inc., which dramatically boosted its stake by +275.0% in the November 2025 reporting window.

This tells you the big index funds are sticking to the script, while active managers are making more volatile, conviction-based moves. The net result is that the total number of institutional owners for Cricut, Inc. is high, at 315 total institutions, with a net increase in shares held by over 2.32 million in the most recent quarter.

Impact of Institutional Investors on Strategy and Stock Price

Institutional ownership is a double-edged sword for a stock like Cricut, Inc. On one hand, the high level of institutional backing-with institutions owning up to 69% of the company-provides a floor of liquidity and legitimacy. On the other hand, the concentration of power is a major factor. The 58% stake held by Petrus Trust Company, LTA means they have the voting power to approve or reject major corporate actions, from mergers to capital allocation strategies.

For you, the individual investor, this means you are investing in a company where the strategic roadmap is heavily influenced by one entity, not a diverse group of shareholders. Plus, institutions are often called 'market movers.' Since Cricut, Inc.'s stock price has seen a decline of 19.29% in the year leading up to November 2025, continued weakness could compel these large funds to sell, which would put significant downward pressure on the stock.

• Risk: Institutional selling, especially from index funds adjusting their weightings, can quickly amplify a price drop.
• Opportunity: Consistent buying from funds like Vanguard and BlackRock can stabilize the stock over the long term.
• Control: The majority stake holder dictates the long-term vision.

If you want to dive deeper into the company's foundation, you should read more about the company's structure and history here: Cricut, Inc. (CRCT): History, Ownership, Mission, How It Works & Makes Money.

Your action item: Track the 13F filings closely, especially for any significant selling from the top five institutional holders, as that signals a change in conviction that could affect the stock price immediately.

Key Investors and Their Impact on Cricut, Inc. (CRCT)

The investor profile for Cricut, Inc. (CRCT) is dominated by a tight circle of insiders and a controlling trust, which is a critical point you must understand before buying a single share. This concentration of power means company decisions are largely insulated from the typical institutional shareholder pressure you see at other firms, but it also creates a liquidity risk.

In the 2025 fiscal year, the total institutional ownership stood at about 19.60% of the stock, but the real power lies with a single, massive position. This isn't a widely-held big-cap stock; it's a company where control is defintely centralized.

The Controlling Stake: Petrus Trust and Insider Influence

The most influential entity in Cricut, Inc.'s ownership structure is Petrus Trust Company, LTA, which holds a controlling stake. As of the last reported data, this trust owned a staggering 122,964,554 shares, representing 58.1% of the company. That's the key number. When one entity holds over half the stock, they effectively dictate the company's strategic direction, board composition, and major capital allocation decisions-like the recurring semi-annual dividend of $0.10 per share announced in Q3 2025.

The company's insiders, including CEO Ashish Arora, also hold a significant portion, totaling around 18% of the stock. This high insider ownership is generally a good sign, aligning management's interests with shareholders, but it also means the public float (shares available for trading) is relatively small, which can lead to higher stock price volatility.

• Petrus Trust Company, LTA: Holds 58.1%, controlling the vote.
• CEO Ashish Arora: Owned 2,696,561 shares after his October 2025 sale.
• Insider sales can signal a lack of confidence, even with strong earnings.

Institutional Giants and Their Passive Role

The institutional buyers are mostly passive index and asset managers, meaning they buy the stock because it's in an index they track, not necessarily because of a deep conviction trade. The two largest institutional holders are Vanguard Group Inc. and BlackRock, Inc., the titans of passive investing.

As of late 2025, Vanguard Group Inc. held 4,729,857 shares with a market value of approximately $29.75 million, while BlackRock, Inc. held over 3.6 million shares. Their influence is less about activism and more about long-term stability and liquidity. They are not pushing for a breakup or a new CEO; they are simply tracking the market. Other notable institutional holders include American Century Companies Inc. and Geode Capital Management LLC.

Here's the quick math: Vanguard's stake is only about 2.2% of the company, which is a small slice compared to the controlling trust. This means the institutional buyers are price-takers, not price-makers, when it comes to major corporate events.

Recent Investor Moves and Market Reaction

Recent activity shows a mixed signal. In the last three months leading up to November 2025, insiders sold a total of 223,245 shares, valued at about $1,325,952. For instance, CEO Ashish Arora sold 21,250 shares in October 2025 for $116,237.50. This selling, even if for personal reasons, can rattle the market, especially when the stock is already under pressure.

The company itself acted as a buyer, repurchasing 441 thousand shares for $2.3 million in Q3 2025. This share buyback (a form of capital return) is a positive signal from management, showing they believe the stock is undervalued, but it was not enough to offset the broader market reaction. The stock closed down 6.73% at $5.35 following the November 4th Q3 2025 earnings announcement, despite reporting a net income of $20.5 million. If you want to dive deeper into how those quarterly numbers impact the valuation, you should check out Breaking Down Cricut, Inc. (CRCT) Financial Health: Key Insights for Investors.

Institutional flows over the last year have been net positive, with total inflows of $36.10 million outpacing outflows of $17.03 million, but the overall institutional ownership percentage remains low. The opportunity here is that if the company can sustain its Q3 profit surge-operating income grew 114% to $22.7 million-the institutional interest will likely increase, driving the stock price up.

Market Impact and Investor Sentiment

You're looking at Cricut, Inc. (CRCT) and trying to figure out if the big money is buying in or heading for the exits. Honestly, the investor sentiment is a mixed bag, but the consensus from Wall Street is defintely leaning negative, even as the company delivers solid financials. The institutional ownership is robust, but the prevailing analyst view is a Strong Sell, which is a clear red flag you can't ignore.

The core issue is a disconnect: Cricut is generating cash and growing its subscription base, but the broader market is still treating it like a hardware-only play facing macro headwinds. Institutions own a significant chunk-around 71.87% of the common stock as of late 2025-with Vanguard Group Inc. leading the pack at roughly 2.23% of shares outstanding. That institutional presence provides a floor, but it hasn't stopped the stock from being volatile.

• Vanguard Group Inc. holds about 2.23% of shares, signaling long-term passive interest.
• Insider activity shows a negative trend, with executives selling a total of over 337,826 shares valued at approximately $1.97 million in the three months leading up to November 2025.
• The CEO, Ashish Arora, sold 17,204 shares in October 2025, a move that often signals caution to the market.

Recent Market Reactions to Ownership Changes

When insiders sell, the market pays attention, and for Cricut, Inc. (CRCT), the reaction has been a sustained downward pressure. The stock price was trading around $4.58 as of November 19, 2025, but it has seen significant volatility throughout the year. For instance, in the month leading up to August 2025, the stock lost a painful 36% of its value. That's a massive move, and it shows how quickly investors can panic when growth slows or insider selling accelerates.

To be fair, the company's financial performance in 2025 has been better than expected in some areas. Q3 2025 revenue hit $170.4 million, a 2% increase year-over-year, and net income jumped a significant 79% to $20.5 million. But still, the market has focused more on the connected machine unit sales, which fell by 10% year-over-year in Q2 2025, rather than the subscription growth. The market is punishing the hardware decline, even with the platform revenue growing.

Here's the quick math on the subscription strength: Paid subscribers exceeded 3 million in Q3 2025, up 6% year-over-year. This recurring revenue stream is the true long-term value driver, but the stock's short-term price action is being dictated by the lumpy hardware sales, which is a common problem for companies transitioning their business model (moving from pure product sales to a platform-based approach).

If you want a deeper dive into how the business model works, you can check out Cricut, Inc. (CRCT): History, Ownership, Mission, How It Works & Makes Money.

Analyst Perspectives on Key Investors and Future Impact

The analyst community is definitely cautious, and their ratings reflect a belief that key investors, like the institutional holders, are currently riding out a difficult cycle rather than aggressively adding to their positions. The consensus price target is low at $4.18, implying a downside from the current trading price. The range is tight, with the low target at $3.80 and the high at only $4.75, showing a lack of conviction for a major upside breakout in the near term.

The primary concern analysts cite is the decline in hardware sales (the 'Products' segment) and ongoing challenges like tariffs, which introduce uncertainty into manufacturing costs. Despite the strong profitability-Q3 2025 gross margin was 55.2%-the market is pricing in risk. They are essentially saying that even the biggest investors are not enough to offset the negative macro and product sales trends right now.

What this estimate hides is the potential for a re-rating if the Platform revenue continues to accelerate. Platform revenue was $82.8 million in Q3 2025, up 7% year-over-year. If that growth continues to outpace the decline in machine sales, the 'Strong Sell' consensus will eventually have to shift. But for now, the cautious analyst view is the main driver of negative sentiment, overshadowing the company's debt-free balance sheet and cash reserves of $207 million.