On July 6, 2023, Jonathan Oringer, the Executive Chairman and 10% owner of Shutterstock Inc (SSTK, Financial), sold 44,535 shares of the company. This move is part of a series of transactions Oringer has made over the past year, during which he has sold a total of 501,734 shares and made no purchases.
Jonathan Oringer is a significant figure in the digital media industry. He founded Shutterstock in 2003, which has since grown into a leading global provider of high-quality licensed photographs, vectors, illustrations, videos, and music. The company’s robust platform currently boasts over 350 million images and more than 20 million video clips, making it a go-to resource for businesses, marketing agencies, and media organizations worldwide.
The recent insider sell by Oringer raises questions about the company’s current valuation and future prospects. Insider sales can sometimes signal a lack of confidence in the company’s future performance, but they can also be part of a planned sell-off or personal financial strategy. Therefore, it’s crucial to analyze these transactions in the broader context of the company’s performance and market trends.
The insider transaction history for Shutterstock Inc shows no insider buys over the past year, but there have been 10 insider sells. This trend could indicate that insiders believe the stock is currently overvalued, or it could simply reflect personal financial decisions by the insiders involved.
As of Oringer’s recent sell, Shutterstock Inc was trading at $50.06 per share, giving the company a market cap of $1.748 billion. The price-earnings ratio stands at 21.46, slightly higher than the industry median of 21.28 but lower than the company’s historical median price-earnings ratio. This suggests that the stock is reasonably valued compared to its earnings.
However, according to the GuruFocus Value of $85.37, Shutterstock Inc appears to be significantly undervalued, with a price-to-GF-Value ratio of 0.59. The GF Value is a proprietary estimate of intrinsic value based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
In conclusion, while Oringer’s recent sell-off may raise some eyebrows, the broader context suggests that Shutterstock Inc’s stock is undervalued. Investors should keep a close eye on the company’s performance and any future insider transactions to make informed decisions.