Zacks Investment Research downgraded shares of Shutterfly, Inc. (NASDAQ:SFLY) from a hold rating to a sell rating in a report published on Tuesday morning.

According to Zacks, “Shutterfly shares have underperformed its industry in the past year. Though the company has a mostly positive record of earnings surprises in recent quarters, estimates have moved slightly down ahead of its third-quarter release. Notably, Shutterfly is expected to incur huge restructuring costs in 2017 and revenue growth is expected to be very slow throughout the year. Though restructuring bodes well for the company in the long run, 2017 is set to be a transition year for them, with different brands transitioning over the first three quarters. Further adding to concerns is that Shutterfly’s business is highly seasonal and is susceptible to travel industry and consumer spending trends. Nevertheless, product innovations and improving technology-related offerings are expected to drive growth. The Shutterfly 3.0 initiative bodes well too. However, a rise in manufacturing, labor and training costs is likely to weigh on margins.”

Several other research analysts have also issued reports on SFLY. TheStreet lowered shares of Shutterfly from a b- rating to a c+ rating in a research note on Tuesday, June 13th. BidaskClub lowered shares of Shutterfly from a sell rating to a strong sell rating in a research note on Thursday, July 13th. Jefferies Group LLC reiterated a hold rating and issued a $53.00 price target on shares of Shutterfly in a research note on Friday, August 4th. SunTrust Banks, Inc. started coverage on shares of Shutterfly in a research note on Tuesday, August 15th. They issued a buy rating and a $56.00 price target for the company. Finally, ValuEngine lowered shares of Shutterfly from a hold rating to a sell rating in a research note on Wednesday, September 6th. Two investment analysts have rated the stock with a sell rating, six have given a hold rating and five have given a buy rating to the stock. The stock has an average rating of Hold and an average price target of $53.45.

Shares of Shutterfly (NASDAQ SFLY) opened at 48.59 on Tuesday. Shutterfly has a 1-year low of $41.91 and a 1-year high of $53.99. The company has a market capitalization of $1.62 billion, a P/E ratio of 296.28 and a beta of 0.90. The firm has a 50-day moving average of $47.55 and a 200 day moving average of $48.42.

Shutterfly (NASDAQ:SFLY) last issued its quarterly earnings results on Tuesday, July 25th. The technology company reported ($0.68) earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.55) by ($0.13). The business had revenue of $209.03 million during the quarter, compared to the consensus estimate of $209.46 million. Shutterfly had a return on equity of 3.61% and a net margin of 0.50%. The firm’s revenue was up 2.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.48) earnings per share. On average, equities research analysts expect that Shutterfly will post $0.41 earnings per share for the current year.

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In other Shutterfly news, insider Lisa Blackwood-Kapral sold 1,250 shares of the firm’s stock in a transaction dated Thursday, August 17th. The shares were sold at an average price of $46.56, for a total transaction of $58,200.00. Following the completion of the sale, the insider now directly owns 1,250 shares in the company, valued at approximately $58,200. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Jason Sebring sold 644 shares of the firm’s stock in a transaction dated Monday, September 18th. The shares were sold at an average price of $48.30, for a total transaction of $31,105.20. The disclosure for this sale can be found here. 5.70% of the stock is currently owned by company insiders.

Large investors have recently added to or reduced their stakes in the business. Riverhead Capital Management LLC boosted its holdings in shares of Shutterfly by 62.1% during the 2nd quarter. Riverhead Capital Management LLC now owns 2,431 shares of the technology company’s stock valued at $116,000 after acquiring an additional 931 shares during the last quarter. Quantbot Technologies LP purchased a new stake in shares of Shutterfly during the 2nd quarter valued at about $119,000. LS Investment Advisors LLC boosted its holdings in shares of Shutterfly by 132.9% during the 2nd quarter. LS Investment Advisors LLC now owns 2,888 shares of the technology company’s stock valued at $137,000 after acquiring an additional 1,648 shares during the last quarter. Ameritas Investment Partners Inc. purchased a new stake in shares of Shutterfly during the 1st quarter valued at about $144,000. Finally, Pinebridge Investments L.P. boosted its holdings in shares of Shutterfly by 1.4% during the 2nd quarter. Pinebridge Investments L.P. now owns 4,450 shares of the technology company’s stock valued at $211,000 after acquiring an additional 60 shares during the last quarter.

About Shutterfly

Shutterfly, Inc is an online manufacturer and retailer of personalized products and services. The Company focuses on helping consumers manage their memories through the medium of photography. The Company’s segments are Consumer and Shutterfly Business Solutions (SBS). The Consumer segment offers photo-based products, such as photo books, stationery and greeting cards, other photo-based merchandise, photo prints and statement gifts.

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Analyst Recommendations for Shutterfly (NASDAQ:SFLY)

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