Shutterstock (NYSE:SSTK) Shares Gap Up - Still a Buy?

Key Points

• Shutterstock shares had a significant price increase, opening at $20.83 after closing at $19.81, with last traded prices reaching $21.10.
• The company reported a missing EPS estimate with earnings of $1.03 for the last quarter, while revenue was $242.62 million, falling short of expectations.
• Shutterstock announced a quarterly dividend of $0.33 per share, which represents an annual yield of 6.34% and reflects a payout ratio of 121.10%.

Shutterstock, Inc. (NYSE:SSTK - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $19.81, but opened at $20.83. Shutterstock shares last traded at $21.10, with a volume of 102,334 shares.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. JMP Securities reissued a "market perform" rating on shares of Shutterstock in a report on Monday, May 5th. Wall Street Zen upgraded Shutterstock to a "hold" rating in a report on Saturday, June 14th. Finally, Needham & Company LLC decreased their price target on Shutterstock from $30.00 to $25.00 and set a "buy" rating on the stock in a report on Monday, June 2nd. Four investment analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $43.67.

Shutterstock Stock Performance

The business has a 50-day moving average of $18.88 and a two-hundred day moving average of $20.71. The company has a market cap of $672.16 million, a P/E ratio of 10.43 and a beta of 1.15. The company has a debt-to-equity ratio of 0.20, a current ratio of 0.49 and a quick ratio of 0.43.

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

Shutterstock Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Thursday, September 4th will be paid a $0.33 dividend. This represents a $1.32 annualized dividend and a dividend yield of 7.0%. The ex-dividend date is Thursday, September 4th. Shutterstock's dividend payout ratio (DPR) is presently 121.10%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Covestor Ltd raised its stake in shares of Shutterstock by 11.3% in the fourth quarter. Covestor Ltd now owns 5,092 shares of the business services provider's stock worth $155,000 after purchasing an additional 515 shares during the last quarter. Snowden Capital Advisors LLC raised its stake in shares of Shutterstock by 5.4% in 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 last quarter. Wealth Enhancement Advisory Services LLC raised 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 valued at $201,000 after acquiring an additional 682 shares in the last quarter. GAMMA Investing LLC raised 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 valued at $38,000 after acquiring an additional 834 shares in the last quarter. Finally, SummerHaven Investment Management LLC raised its position in Shutterstock by 4.0% during the second quarter. SummerHaven Investment Management LLC now owns 22,243 shares of the business services provider's stock valued at $422,000 after acquiring an additional 861 shares in the last quarter. 82.79% of the stock is currently owned by hedge funds and other institutional investors.

Shutterstock Company Profile

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.