Shutterstock , Inc. (NYSE:SSTK), a global provider of stock photography, footage, music, and editing tools, has declared a cash dividend for its shareholders. The company's Board of Directors announced on Monday that a dividend of $0.30 per common share will be distributed to shareholders of record as of November 29, 2024. The payment is scheduled for December 13, 2024.
This declaration reflects Shutterstock's ongoing commitment to delivering value to its investors. The company, headquartered in New York and incorporated in Delaware, operates within the computer processing and data preparation sector under the SIC code 7374.
The dividend announcement is part of the company's latest 8-K filing with the Securities and Exchange Commission (SEC). The 8-K is a current report companies must file to announce significant events that shareholders should be aware of. Shutterstock's filing on October 21, 2024, included this dividend declaration as the primary item of interest.
This news article is based on the most recent 8-K filing.
In other recent news, Shutterstock has seen several significant developments. The company reported a 5.4% year-over-year increase in its second-quarter revenue, reaching $220 million, primarily driven by its Data, Distribution, and Services business, which surged by 129%. However, the Content business witnessed a 9% decline in revenue, falling to $170 million.
The company also announced the discontinuation of its drug candidate '154, a CD47/SIRPα blocker, due to its failure to improve overall survival rates. As a result, Shutterstock plans to shift its focus to developing SL-325, a DR3 antibody aimed at treating inflammatory bowel disease.
Citi downgraded Shutterstock from Buy to Neutral and slashed its price target to $2.00 from $8.00 following these developments. Needham also lowered its price target for Shutterstock to $55, maintaining a Buy rating, despite reduced revenue projections for the Content division.
Recent developments also include Shutterstock's acquisition of Envato, which is expected to enhance the Content business and add an estimated $75 million to revenues by 2024. The company also unveiled new GenAI 3D capabilities and a partnership with Databricks, indicating a focus on technological advancements.
InvestingPro Insights
Shutterstock's recent dividend declaration aligns with its track record of shareholder value creation. According to InvestingPro data, the company has raised its dividend for 4 consecutive years, with the current dividend yield standing at 4.07%. This consistent dividend growth, coupled with management's aggressive share buybacks, underscores a strong commitment to returning capital to shareholders.
The company's financial health appears solid, with InvestingPro Tips highlighting that Shutterstock holds more cash than debt on its balance sheet. This financial stability is further reinforced by the fact that cash flows can sufficiently cover interest payments, providing a cushion for the company's dividend policy.
Despite recent market challenges, with the stock trading near its 52-week low and experiencing a significant price decline over the last three months, Shutterstock remains profitable. The company's P/E ratio (adjusted) of 15.37 for the last twelve months as of Q2 2024 suggests a potentially attractive valuation for investors considering the stock's recent performance.
For those seeking a deeper understanding of Shutterstock's financial position and growth prospects, InvestingPro offers 7 additional tips and a comprehensive set of real-time metrics to aid in investment decision-making.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.