Last Updated: 15 Oct 2024
Executive Summary
Shutterstock (SSTK) is a leading provider of stock photography, videos, and music. The company has a strong financial position, with growing revenue and earnings. However, the stock price has been under pressure in recent months due to concerns about competition and the impact of the COVID-19 pandemic.
Company Overview
Shutterstock was founded in 2003 and is headquartered in New York City. The company provides a library of over 350 million images, videos, and music tracks to businesses and consumers. Shutterstock's customers include advertising agencies, design firms, publishers, and individuals.
Fundamental Analysis
Shutterstock has a strong financial position. The company's revenue has grown at a compound annual growth rate (CAGR) of 15% over the past five years. Earnings per share (EPS) has also grown at a CAGR of 15% over the same period.
Shutterstock's profit margins are healthy. The company's gross profit margin is 58% and its operating profit margin is 10%. This indicates that Shutterstock is able to generate a significant amount of profit from its sales.
Shutterstock's balance sheet is also strong. The company has $250 million in cash and equivalents and no debt. This gives Shutterstock the financial flexibility to invest in new growth initiatives.
Technical Analysis
The technical analysis of Shutterstock's stock price shows that the stock is in a downtrend. The stock price has been below its 50-day and 200-day moving averages for the past several months. This indicates that the stock is likely to continue to decline in the short term.
Short Term Outlook
The short-term outlook for Shutterstock's stock is negative. The stock price is in a downtrend and there are no signs of a reversal. Investors should avoid buying Shutterstock's stock in the short term.
Long Term Outlook
The long-term outlook for Shutterstock's stock is more positive. The company has a strong financial position and a growing business. However, the stock price is currently undervalued. Investors who are willing to be patient could see significant gains in the long term.
Analyst Recommendations
The consensus analyst recommendation for Shutterstock's stock is "hold". Two analysts recommend buying the stock, two recommend holding the stock, and one recommends selling the stock. The median analyst target price is $53.25.
