Shutterstock (NYSE:SSTK) Cut to "Hold" at Wall Street Zen

Key Points

• Shutterstock has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, reflecting a cautious outlook among analysts.
• Needham & Company has adjusted its target price for Shutterstock from $30.00 to $25.00, while the stock has a current consensus target price of $43.67.
• Despite reporting a revenue increase of 21.3% year-over-year, Shutterstock's latest earnings per share fell short of estimates, indicating underlying challenges in the business.

Shutterstock (NYSE:SSTK - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

Separately, Needham & Company LLC decreased their target price on Shutterstock from $30.00 to $25.00 and set a "buy" rating on the stock in a research note on Monday, June 2nd. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $43.67.

Shutterstock Stock Down 0.9%

NYSE SSTK opened at $20.96 on Friday. The stock's 50-day moving average price is $20.22 and its 200-day moving average price is $18.92. The company has a quick ratio of 0.49, a current ratio of 0.49 and a debt-to-equity ratio of 0.20. Shutterstock has a 52 week low of $14.35 and a 52 week high of $38.80. The company has a market capitalization of $743.45 million, a P/E ratio of 11.58 and a beta of 1.05.

Shutterstock (NYSE:SSTK - Get Free Report) last issued its earnings results on Tuesday, July 29th. The business services provider reported $1.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.65 by ($0.46). The business had revenue of $266.99 million for the quarter, compared to the consensus estimate of $248.27 million. Shutterstock had a net margin of 6.36% and a return on equity of 18.42%. The firm's revenue for the quarter was up 21.3% compared to the same quarter last year. During the same period last year, the business posted $1.00 EPS. On average, equities research analysts predict that Shutterstock will post 3.12 earnings per share for the current year.

Institutional Trading of Shutterstock

A number of large investors have recently added to or reduced their stakes in SSTK. Alpine Associates Management Inc. bought a new stake in Shutterstock in the 1st quarter worth approximately $11,177,000. Callodine Capital Management LP bought a new stake in Shutterstock in the 2nd quarter worth approximately $7,835,000. Millennium Management LLC boosted its holdings in shares of Shutterstock by 109.3% in the 1st quarter. Millennium Management LLC now owns 626,615 shares of the business services provider's stock worth $11,674,000 after purchasing an additional 327,203 shares during the period. Invenomic Capital Management LP boosted its holdings in shares of Shutterstock by 47.1% in the 1st quarter. Invenomic Capital Management LP now owns 885,022 shares of the business services provider's stock worth $16,488,000 after purchasing an additional 283,532 shares during the period. Finally, Hotchkis & Wiley Capital Management LLC boosted its holdings in shares of Shutterstock by 63.8% in the 1st quarter. Hotchkis & Wiley Capital Management LLC now owns 538,670 shares of the business services provider's stock worth $10,035,000 after purchasing an additional 209,840 shares during the period. Institutional investors own 82.79% of the company's stock.

About Shutterstock

Shutterstock, Inc provides platform to connect brands and businesses to high quality content in North America, Europe, and internationally. The company offers image services consisting of photographs, vectors, and illustrations, which is used in visual communications, such as websites, digital and print marketing materials, corporate communications, books, publications, and others; footage services, including video clips, filmed by industry experts and cinema grade video effects in HD and 4K formats that are integrated into websites, social media, marketing campaigns, and cinematic productions; and music services comprising music tracks and sound effects, which are used to complement images and footage.

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