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.

Wall Street Zen lowered shares of Shutterstock (NYSE:SSTK - Free Report) from a buy rating to a hold rating in a report published on Saturday.

Separately, Needham & Company LLC cut their price target on shares of Shutterstock from $30.00 to $25.00 and set a "buy" rating on the stock in a research report on Monday, June 2nd. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $43.67.

Shutterstock Trading Up 1.4%

Shares of NYSE:SSTK traded up $0.31 during mid-day trading on Friday, reaching $21.85. The stock had a trading volume of 202,450 shares, compared to its average volume of 188,474. The firm has a market cap of $775.02 million, a PE ratio of 12.07 and a beta of 1.05. The firm has a 50 day simple moving average of $20.39 and a two-hundred day simple moving average of $18.92. The company has a current ratio of 0.49, a quick ratio of 0.49 and a debt-to-equity ratio of 0.20. Shutterstock has a twelve month low of $14.35 and a twelve month high of $38.80.

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

Shutterstock Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Shareholders of record on Thursday, September 4th will be issued a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 6.0%. The ex-dividend date is Thursday, September 4th. Shutterstock's dividend payout ratio (DPR) is 72.93%.

Institutional Trading of Shutterstock

A number of hedge funds and other institutional investors have recently made changes to their positions in SSTK. Snowden Capital Advisors LLC boosted its position in Shutterstock by 5.4% during the fourth quarter. Snowden Capital Advisors LLC now owns 10,701 shares of the business services provider's stock worth $325,000 after purchasing an additional 548 shares during the period. Wealth Enhancement Advisory Services LLC boosted its position in Shutterstock by 11.5% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 6,636 shares of the business services provider's stock worth $201,000 after purchasing an additional 682 shares during the period. WealthCollab LLC boosted its position in Shutterstock by 106.3% during the second quarter. WealthCollab LLC now owns 1,452 shares of the business services provider's stock worth $28,000 after purchasing an additional 748 shares during the period. GAMMA Investing LLC boosted its position in Shutterstock by 71.8% during the second quarter. GAMMA Investing LLC now owns 1,996 shares of the business services provider's stock worth $38,000 after purchasing an additional 834 shares during the period. Finally, SummerHaven Investment Management LLC lifted its holdings in shares of Shutterstock by 4.0% during the second quarter. SummerHaven Investment Management LLC now owns 22,243 shares of the business services provider's stock worth $422,000 after buying an additional 861 shares in the last quarter. 82.79% of the stock is currently owned by institutional investors and hedge funds.

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.