Shutterstock Ramps Up Dividend By 24%; Street Is Bullish

Shutterstock (SSTK) increased its quarterly dividend by 24% to $0.21 per share from $0.17. Shares closed 1.2% higher on Tuesday.

The provider of high-quality photographs, music, and videos to businesses, said that the quarterly dividend will be paid by Mar. 18, 2021, to shareholders of record as of Mar. 4. Its annual dividend of $0.84 per share now reflects a dividend yield of 1.2%.

Earlier in October, Shutterstock reported better-than-expected 3Q results. The company posted adjusted earnings of $0.80 per share, which paced past analysts’ estimates of $0.29 per share. Revenue generated $165.2 million during the reported quarter, beating the Street’s estimates of $160.8 million. The company is set to report its 4Q results on Feb. 11. (See SSTK stock analysis on TipRanks)

Following the 3Q earnings, Needham analyst Brad Erickson raised the stock’s price target to $88 (25.1% upside potential) from $65 and maintained a Buy rating. The analyst said Shutterstock is “one of only a few leading players in the $6 billion stock content industry.” Erickson added “we think upside potential remains most likely from further subscription additions, enterprise solution selling and less-than-feared utilization headwinds. We remain buyers of SSTK.”

From the rest of the Street, the stock scores a bullish outlook with the analyst consensus of a Strong Buy based on 4 unanimous Buys. The average analyst price target of $82 implies upside potential of about 16.6% to current levels. Shares have rallied 65.6% over the past year.

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