Chu Chinh, a director at Getty Images Holdings, Inc. (NYSE:GETY), recently sold shares of the company, according to a recent SEC filing. On October 16 and 17, Chinh sold a total of 60,530 shares of Class A common stock. The transactions were executed at weighted average prices ranging from $4.0059 to $4.0185 per share, totaling $243,024.
Following these sales, Chinh holds 9,803,406 shares indirectly through CC Capital SP, LP, and 5,762,560 shares through CC NB Sponsor 2 Holdings LLC. The sales were conducted under a pre-established Rule 10b5-1 trading plan.
In other recent news, Getty Images reported a modest revenue increase in Q2 of 2024, with earnings reaching $229.1 million, a 1.5% rise on a reported basis. This growth was primarily propelled by an uptick in paid downloads and a surge in annual subscribers, now totaling 100,000. However, the company also experienced a 5.4% decrease in adjusted EBITDA, which fell to $68.8 million. Getty Images anticipates full-year revenue for 2024 to range from $924 million to $943 million, with adjusted EBITDA predicted to land between $290 million and $294 million.
In the face of ongoing challenges in the agency business and a slow recovery following the Hollywood strike, Getty Images launched an updated Generative AI model in partnership with NVIDIA (NASDAQ:NVDA). The company also collaborated with PixArt and Canva, further expanding its partnerships. Subscription revenue now makes up 52.9% of total revenue, indicating a successful focus on driving annual subscriptions.
Despite a year-on-year decline of 5.4% in adjusted EBITDA, the company saw its first quarter of growth since the Hollywood strikes, with gains across sports, news, and entertainment sectors. Moreover, Getty Images' premium access subscription offering received a strong customer response. These recent developments underline Getty Images' commitment to bolster its subscription services and enhance its AI capabilities in the competitive visual content market.
InvestingPro Insights
In light of the recent insider sale by director Chu Chinh, it's worth examining Getty Images Holdings, Inc. (NYSE:GETY) through the lens of current financial metrics and expert insights. According to InvestingPro data, Getty Images has a market capitalization of $1.63 billion and is trading at a P/E ratio of 41.97, which is considered high relative to its peers.
Despite the high P/E ratio, an InvestingPro Tip suggests that GETY is trading at a low P/E ratio relative to its near-term earnings growth, indicating potential undervaluation. This could be particularly interesting for investors considering the recent insider sale.
Another relevant InvestingPro Tip notes that analysts predict the company will be profitable this year, which aligns with the company's positive financial outlook. Getty Images has been profitable over the last twelve months, with a revenue of $906.66 million and an operating income margin of 20.73% for the same period.
It's important to note that while the stock has shown volatility, with a year-to-date price total return of -23.43%, it has demonstrated positive momentum in the short term, with a 1-month price total return of 12.29%.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond what's mentioned here. In fact, there are 8 more InvestingPro Tips available for Getty Images, providing a deeper understanding of the company's financial health and market position.
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