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

Key Points

• Price break: Shutterstock shares slid below their 200-day moving average of $19.35, trading as low as $17.63 (last $17.868), signaling a technical bearish shift.
• Earnings miss: The company reported $0.67 EPS vs. $1.05 expected and revenue of $220.22M (down 12% YoY), pointing to weakening near-term fundamentals.
• Dividend concern: Shutterstock raised its quarterly dividend to $0.36 (annualized $1.44) for an 8.1% yield, but the payout ratio is 111.63%, which may be unsustainably high.

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 $19.35 and traded as low as $17.63. Shutterstock shares last traded at $17.8680, with a volume of 213,049 shares.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on SSTK shares. Weiss Ratings reissued a "hold (c-)" rating on shares of Shutterstock in a research note on Wednesday, January 21st. Zacks Research raised Shutterstock from a "strong sell" rating to a "hold" rating in a research note on Monday, January 26th. One 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.com, the stock presently has an average rating of "Hold" and a consensus target price of $25.00.

Shutterstock Trading Up 1.5%

The company has a market cap of $635.15 million, a PE ratio of 13.85 and a beta of 1.18. The business has a 50 day simple moving average of $16.80 and a two-hundred day simple moving average of $19.35. The company has a current ratio of 0.54, a quick ratio of 0.54 and a debt-to-equity ratio of 0.20.

Shutterstock (NYSE:SSTK - Get Free Report) last issued its quarterly earnings results on Tuesday, February 17th. The business services provider reported $0.67 earnings per share for the quarter, missing analysts' consensus estimates of $1.05 by ($0.38). Shutterstock had a return on equity of 16.13% and a net margin of 4.60%.The business had revenue of $220.22 million for the quarter, compared to analysts' expectations of $252.28 million. During the same period in the prior year, the company earned $0.67 EPS. The company's revenue for the quarter was down 12.0% compared to the same quarter last year. On average, analysts forecast that Shutterstock, Inc. will post 3.12 EPS for the current fiscal year.

Shutterstock Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 19th. Investors of record on Thursday, March 5th were given a $0.36 dividend. This is an increase from Shutterstock's previous quarterly dividend of $0.33. The ex-dividend date of this dividend was Thursday, March 5th. This represents a $1.44 annualized dividend and a dividend yield of 8.1%. Shutterstock's dividend payout ratio is 111.63%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. WealthCollab LLC raised its position in shares of Shutterstock by 106.3% in the 2nd quarter. WealthCollab LLC now owns 1,452 shares of the business services provider's stock worth $28,000 after buying an additional 748 shares during the period. Osaic Holdings Inc. grew its holdings in shares of Shutterstock by 150.6% during the 2nd quarter. Osaic Holdings Inc. now owns 1,772 shares of the business services provider's stock worth $34,000 after purchasing an additional 1,065 shares during the period. Covestor Ltd increased its position in Shutterstock by 31.5% during the 3rd quarter. Covestor Ltd now owns 2,951 shares of the business services provider's stock worth $62,000 after purchasing an additional 707 shares in the last quarter. Tower Research Capital LLC TRC increased its position 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 worth $63,000 after purchasing an additional 1,388 shares in the last quarter. Finally, Byrne Asset Management LLC increased its position 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 worth $89,000 after purchasing an additional 412 shares in the last quarter. 82.79% of the stock is owned by hedge funds and other institutional investors.

Shutterstock Company Profile

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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