Shutterstock (NYSE:SSTK) Rating Lowered to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Shutterstock from a "hold" to a "sell" in its latest report, though the MarketBeat consensus remains a "Hold" with a $25.00 target price.
• Earnings miss and revenue decline: Q4 EPS was $0.67 versus $1.05 expected and revenue fell to $220.2M (down 12% YoY), leaving Shutterstock with a negative net margin; the stock trades around $16.70 with a market cap near $614M.
• High institutional ownership: About 82.8% of shares are held by hedge funds and institutional investors, and several funds have recently increased their stakes.

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

Other equities research analysts have also issued research reports about the stock. Weiss Ratings reissued a "hold (c-)" rating on shares of Shutterstock in a research note on Monday, April 20th. Zacks Research upgraded shares of Shutterstock from a "strong sell" rating to a "hold" rating in a research note on Monday, January 26th. One equities research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $25.00.

Shutterstock Stock Up 3.3%

Shares of Shutterstock stock opened at $16.70 on Friday. The company has a current ratio of 0.51, a quick ratio of 0.54 and a debt-to-equity ratio of 0.22. The company's fifty day simple moving average is $16.87 and its two-hundred day simple moving average is $19.05. The company has a market cap of $613.56 million, a P/E ratio of -28.79 and a beta of 1.11. Shutterstock has a 12-month low of $14.36 and a 12-month high of $29.50.

Shutterstock (NYSE:SSTK - Get Free Report) last issued its quarterly earnings data on Tuesday, February 17th. The business services provider reported $0.67 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.05 by ($0.38). The company had revenue of $220.22 million for the quarter, compared to analysts' expectations of $252.28 million. Shutterstock had a negative net margin of 2.19% and a positive return on equity of 14.12%. The firm's revenue for the quarter was down 12.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.67 earnings per share. Research analysts anticipate that Shutterstock will post 2.73 EPS for the current year.

Institutional Investors Weigh In On Shutterstock

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. WealthCollab LLC grew its holdings in Shutterstock by 106.3% during the 2nd quarter. WealthCollab LLC now owns 1,452 shares of the business services provider's stock valued at $28,000 after buying an additional 748 shares in the last quarter. Osaic Holdings Inc. grew its holdings in Shutterstock by 150.6% during the 2nd quarter. Osaic Holdings Inc. now owns 1,772 shares of the business services provider's stock valued at $34,000 after buying an additional 1,065 shares in the last quarter. Covestor Ltd grew its holdings in Shutterstock by 31.5% during the 3rd quarter. Covestor Ltd now owns 2,951 shares of the business services provider's stock valued at $62,000 after buying an additional 707 shares in the last quarter. Tower Research Capital LLC TRC grew its holdings in Shutterstock by 72.7% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,297 shares of the business services provider's stock valued at $63,000 after buying an additional 1,388 shares in the last quarter. Finally, Byrne Asset Management LLC grew its holdings in Shutterstock by 10.7% during the 3rd quarter. Byrne Asset Management LLC now owns 4,272 shares of the business services provider's stock valued at $89,000 after buying an additional 412 shares in the last quarter. 82.79% of the stock is owned by hedge funds and other institutional investors.

About Shutterstock

Shutterstock, Inc NYSE: SSTK operates a leading global creative platform that provides royalty-free stock content to businesses, marketing agencies and media outlets. Its primary offerings include high-resolution photographs, vector graphics, illustrations, video footage and music tracks, all available through subscription plans or on-demand licensing. The platform also features customizable design tools and collaborative workspaces that enable customers to create and manage visual content more efficiently.

Founded in 2003 by Jon Oringer, Shutterstock began as an online marketplace offering a modest selection of images and quickly scaled its library to hundreds of millions of assets.

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