Shutterstock (NYSE:SSTK) Releases Quarterly Earnings Results, Misses Expectations By $4.40 EPS

Key Points

• Shutterstock reported a quarterly loss of $4.25 per share, missing the $0.15 consensus estimate by $4.40. The company posted a negative net margin of 2.19% despite a 14.12% return on equity.
• Shares traded near $6.03, close to their 12-month low of $5.17 and well below the 50-day and 200-day moving averages of $10.92 and $15.00, respectively. Shutterstock has a market capitalization of about $221 million.
• Analyst sentiment remains mixed, with ratings ranging from buy to sell and an overall consensus of “Hold” alongside a $7.00 price target. Institutional investors own 82.79% of the stock, with several large funds recently increasing their positions.

Shutterstock (NYSE:SSTK - Get Free Report) announced its quarterly earnings data on Tuesday. The business services provider reported ($4.25) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.15 by ($4.40), reports. Shutterstock had a positive return on equity of 14.12% and a negative net margin of 2.19%.

Shutterstock Stock Performance

NYSE:SSTK traded down $0.03 during mid-day trading on Tuesday, hitting $6.03. 1,237,253 shares of the company's stock traded hands, compared to its average volume of 564,897. The firm has a market capitalization of $221.42 million, a price-to-earnings ratio of -10.39 and a beta of 1.06. The firm has a 50 day moving average of $10.92 and a two-hundred day moving average of $15.00. The company has a current ratio of 0.51, a quick ratio of 0.51 and a debt-to-equity ratio of 0.22. Shutterstock has a 12 month low of $5.17 and a 12 month high of $29.50.

Wall Street Analyst Weigh In

Several brokerages have weighed in on SSTK. Citigroup raised Shutterstock from a "neutral" rating to a "buy" rating and set a $7.00 target price on the stock in a research report on Friday, June 5th. Zacks Research upgraded Shutterstock from a "strong sell" rating to a "hold" rating in a report on Friday, July 17th. Weiss Ratings reissued a "sell (d+)" rating on shares of Shutterstock in a research note on Friday. Finally, Wall Street Zen cut Shutterstock from a "hold" rating to a "sell" rating in a research note on Sunday, July 26th. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $7.00.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of SSTK. Balyasny Asset Management L.P. grew its stake in shares of Shutterstock by 229.7% in the 4th quarter. Balyasny Asset Management L.P. now owns 804,655 shares of the business services provider's stock valued at $15,369,000 after purchasing an additional 560,617 shares during the period. Millennium Management LLC lifted its position in shares of Shutterstock by 109.3% during the 1st quarter. Millennium Management LLC now owns 626,615 shares of the business services provider's stock worth $11,674,000 after buying an additional 327,203 shares during the period. Callodine Capital Management LP lifted its position in shares of Shutterstock by 34.5% during the 4th quarter. Callodine Capital Management LP now owns 1,033,963 shares of the business services provider's stock worth $19,749,000 after buying an additional 265,258 shares during the period. UBS Group AG boosted its stake in Shutterstock by 72.7% in the 3rd quarter. UBS Group AG now owns 547,241 shares of the business services provider's stock valued at $11,410,000 after buying an additional 230,413 shares in the last quarter. Finally, Adage Capital Partners GP L.L.C. acquired a new stake in Shutterstock in the 4th quarter valued at $3,763,000. 82.79% of the stock is currently owned by institutional investors and hedge funds.

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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