Jarrod Yahes, CFO of Shutterstock (SSTK), recently bought 5,350 shares. The buy increased his stake by 14%, and came to a total cost of $199,822.
This is the first insider buy since a director bought 10,000 shares in June 2022. Otherwise, company insiders have been sellers, with the biggest sales coming from the company’s Chairman of the Board, who is also a major holder.
Overall, Shutterstock insiders own 31.2% of shares.
The image service company is down 27% over the past year. The rise of AI technologies for image creation is seen by many as a potential threat to companies that produce and license images.
That’s reflected in the company’s financials. Earnings are down by 51%, and revenues have been flat over the past 12 months.
Despite that falloff, shares are somewhat inexpensive at 14 times earnings, and Shutterstock has slightly more cash than debt on its balance sheet.
Action to take: Shares are near a 52-week low, are oversold, and have started to trend higher in recent sessions. They may make for a quick rebound play in the coming weeks and months.
At current prices, Shutterstock also pays a 3.2% dividend.
For traders, the September $40 calls, last trading for about $3.10, could see mid-to-high double-digit returns on a bigger bounce higher for shares in the coming weeks.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.