Shutterstock (NYSE:SSTK) Shares Down 11.3% After Earnings Miss

Shutterstock, Inc. (NYSE:SSTK)’s stock price traded down 11.3% during trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $15.62 and last traded at $15.3240. 338,743 shares traded hands during trading, an increase of 41% from the average session volume of 239,588 shares. The stock had previously closed at $17.27.

The business services provider reported $0.67 earnings per share (EPS) 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 company had revenue of $220.22 million for the quarter. During the same quarter last year, the firm earned $0.67 EPS. The company’s quarterly revenue was down 12.0% compared to the same quarter last year.

Shutterstock Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 19th. Investors of record on Thursday, March 5th will be issued a $0.36 dividend. This is a boost from Shutterstock’s previous quarterly dividend of $0.33. This represents a $1.44 dividend on an annualized basis and a yield of 9.3%. The ex-dividend date is Thursday, March 5th. Shutterstock’s dividend payout ratio is currently 78.57%.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on SSTK. Weiss Ratings restated a “hold (c-)” rating on shares of Shutterstock in a report on Wednesday, January 21st. Wall Street Zen downgraded shares of Shutterstock from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. Finally, Zacks Research raised Shutterstock from a “strong sell” rating to a “hold” rating in a research report on Monday, January 26th. One research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, Shutterstock currently has an average rating of “Hold” and a consensus target price of $25.00.

Hedge Funds Weigh In On Shutterstock

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Balyasny Asset Management L.P. lifted its stake in 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 last quarter. Callodine Capital Management LP acquired a new position in shares of Shutterstock during the second quarter worth $7,835,000. Millennium Management LLC increased its holdings in shares of Shutterstock by 109.3% during the first 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 in the last quarter. UBS Group AG lifted its stake in shares of 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 acquiring an additional 230,413 shares during the last quarter. Finally, Adage Capital Partners GP L.L.C. acquired a new stake in shares of Shutterstock during the 4th quarter valued at $3,763,000. 82.79% of the stock is owned by institutional investors and hedge funds.

Shutterstock Price Performance

The business has a 50-day moving average of $18.55 and a two-hundred day moving average of $20.51. The company has a current ratio of 0.54, a quick ratio of 0.53 and a debt-to-equity ratio of 0.20. The firm has a market cap of $551.03 million, a P/E ratio of 12.02 and a beta of 1.26.

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.