Shutterstock (NYSE:SSTK) Shares Down 11.3% Following Weak Earnings

Shares of Shutterstock, Inc. (NYSE:SSTK) dropped 11.3% during mid-day trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $15.62 and last traded at $15.3240. Approximately 338,743 shares changed hands during trading, an increase of 41% from the average daily volume of 239,588 shares. The stock had previously closed at $17.27.

The business services provider reported $0.67 EPS for the quarter, missing the consensus estimate of $1.05 by ($0.38). The company had revenue of $220.22 million for the quarter. Shutterstock had a return on equity of 16.13% and a net margin of 4.60%.The firm’s revenue for the quarter was down 12.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.67 earnings per share.

Shutterstock Increases Dividend

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

Wall Street Analysts Forecast Growth

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. WealthCollab LLC grew its holdings in shares of Shutterstock by 106.3% during the second quarter. WealthCollab LLC now owns 1,452 shares of the business services provider’s stock worth $28,000 after buying an additional 748 shares in the last quarter. Osaic Holdings Inc. lifted its stake in shares of Shutterstock by 150.6% in the second quarter. Osaic Holdings Inc. now owns 1,772 shares of the business services provider’s stock worth $34,000 after buying an additional 1,065 shares in the last quarter. EMC Capital Management acquired a new position in Shutterstock during the second quarter worth about $36,000. Covestor Ltd grew its stake in Shutterstock by 31.5% during the 3rd quarter. Covestor Ltd now owns 2,951 shares of the business services provider’s stock valued at $62,000 after acquiring an additional 707 shares in the last quarter. Finally, Equitec Proprietary Markets LLC purchased a new stake in Shutterstock during the 2nd quarter valued at about $57,000. Hedge funds and other institutional investors own 82.79% of the company’s stock.

Shutterstock Stock Performance

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 stock’s fifty day simple moving average is $18.55 and its 200 day simple moving average is $20.51. The company has a market cap of $551.03 million, a price-to-earnings 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.