Shutterstock (NYSE:SSTK) Shares Gap Up - Here's What Happened

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)'s stock price 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 changing hands.

Analysts Set New Price Targets

SSTK has been the subject of a number of analyst reports. JMP Securities reissued a "market perform" rating on shares of Shutterstock in a report on Monday, May 5th. Wall Street Zen upgraded Shutterstock from a "hold" rating to a "buy" rating in a research report on Saturday. Finally, Needham & Company LLC cut their price objective on Shutterstock from $30.00 to $25.00 and set a "buy" rating for the company in a research report on Monday, June 2nd. Three equities research analysts have rated the stock with a hold rating and two have given a buy rating to the company's stock. According to data from MarketBeat.com, Shutterstock presently has a consensus rating of "Hold" and an average target price of $43.67.

Shutterstock Price Performance

The firm has a market capitalization of $663.01 million, a PE ratio of 10.33 and a beta of 1.15. The stock has a 50-day moving average price of $18.88 and a 200 day moving average price of $20.71. The company has a quick ratio of 0.43, a current ratio of 0.49 and a debt-to-equity ratio of 0.20.

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

Shutterstock Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 18th. Investors of record on Thursday, September 4th will be given a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 7.1%. The ex-dividend date is Thursday, September 4th. Shutterstock's payout ratio is presently 72.93%.

Institutional Trading of Shutterstock

Several large investors have recently made changes to their positions in SSTK. Covestor Ltd boosted its stake in Shutterstock by 11.3% during the fourth quarter. Covestor Ltd now owns 5,092 shares of the business services provider's stock worth $155,000 after buying an additional 515 shares during the last quarter. Snowden Capital Advisors LLC boosted its stake in Shutterstock by 5.4% during the fourth quarter. Snowden Capital Advisors LLC now owns 10,701 shares of the business services provider's stock worth $325,000 after buying an additional 548 shares during the last quarter. Wealth Enhancement Advisory Services LLC boosted its stake 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 worth $201,000 after buying an additional 682 shares during the last quarter. GAMMA Investing LLC boosted its stake in Shutterstock by 71.8% during the second quarter. GAMMA Investing LLC now owns 1,996 shares of the business services provider's stock worth $38,000 after buying an additional 834 shares during the last quarter. Finally, SummerHaven Investment Management LLC boosted its stake 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 worth $422,000 after buying an additional 861 shares during the last quarter. 82.79% of the stock is currently owned by hedge funds and other institutional investors.

About Shutterstock

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.