Shutterstock (NYSE:SSTK) Share Price Crosses Below 200 Day Moving Average - Time to Sell?

Key Points

• Shutterstock shares fell below their 200-day moving average, trading as low as $8.65 and last changing hands around $8.85, well below the $16.50 long-term trend level. The move highlights continued weakness in the stock.
• Wall Street sentiment remains cautious, with analysts giving Shutterstock an average rating of “Reduce” and an average price target of $7.00. Recent note changes included Citigroup upgrading to buy, while Weiss Ratings, Zacks Research, and Wall Street Zen all issued more bearish calls.
• Despite the weak share performance, Shutterstock recently paid a quarterly dividend of $0.36 per share, equal to $1.44 annualized and a 16.3% yield. Institutional ownership remains high at 82.79%, and several funds increased or initiated positions recently.

Shutterstock, Inc. (NYSE:SSTK - Get Free Report)'s share price passed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $16.50 and traded as low as $8.65. Shutterstock shares last traded at $8.8530, with a volume of 980,324 shares.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the stock. Citigroup upgraded shares of Shutterstock from a "neutral" rating to a "buy" rating and set a $7.00 target price for the company in a research note on Friday, June 5th. Weiss Ratings lowered Shutterstock from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, May 4th. Zacks Research lowered Shutterstock from a "hold" rating to a "strong sell" rating in a report on Thursday, June 11th. Finally, Wall Street Zen cut Shutterstock from a "hold" rating to a "sell" rating in a research note on Saturday, May 2nd. One research analyst has rated the stock with a Buy rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Shutterstock currently has an average rating of "Reduce" and an average target price of $7.00.

Shutterstock Price Performance

The company's 50-day simple moving average is $14.34 and its 200-day simple moving average is $16.50. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.51 and a quick ratio of 0.51. The stock has a market capitalization of $325.26 million, a price-to-earnings ratio of -15.26 and a beta of 1.06.

Shutterstock Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th were paid a dividend of $0.36 per share. The ex-dividend date was Thursday, June 4th. This represents a $1.44 dividend on an annualized basis and a dividend yield of 16.3%. Shutterstock's dividend payout ratio (DPR) is -248.28%.

Institutional Trading of Shutterstock

Institutional investors have recently added to or reduced their stakes in the company. Callodine Capital Management LP increased its position in Shutterstock by 86.0% during the 3rd quarter. Callodine Capital Management LP now owns 768,705 shares of the business services provider's stock worth $16,027,000 after buying an additional 355,478 shares during the period. Union Square Park Capital Management LLC bought a new stake in shares of Shutterstock in the fourth quarter valued at about $2,101,000. Unison Advisors LLC bought a new stake in shares of Shutterstock in the fourth quarter valued at about $730,000. Byrne Asset Management LLC grew its stake in shares of Shutterstock by 52.2% in the fourth quarter. Byrne Asset Management LLC now owns 6,500 shares of the business services provider's stock valued at $124,000 after acquiring an additional 2,228 shares in the last quarter. Finally, Principal Financial Group Inc. grew its stake in shares of Shutterstock by 14.5% in the first quarter. Principal Financial Group Inc. now owns 157,490 shares of the business services provider's stock valued at $2,616,000 after acquiring an additional 19,890 shares in the last quarter. 82.79% of the stock is currently owned by 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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