Getty Images Stock Is Getting A Boost Today: What's Going On?

Getty Images Holdings Inc GETY shares are trading higher Tuesday after Trillium Capital issued an open letter to the board saying the stock should be trading approximately 100% higher.

What To Know: Trillium Capital, which owns hundreds of thousands of Getty shares, noted that it believes the Getty board has not acted on obvious opportunities to increase shareholder value.

"We have tried to communicate with the Board but have not received a response. We now have no choice but to publicly urge them to take action to enhance shareholder value," Trillium said.

Trillium recommended that the company consider a sale to a strategic buyer or a private equity firm. The activist also indicated the company's largest shareholders should consider taking it private. 

Either way, Trillium believes Getty should restructure costs and implement a labor reduction. Company executives should also buy more stock to demonstrate commitment and confidence. The activist even suggested a convertible debt offering to be used to pay down debt or initiate a buyback. 

"We strongly believe that using the Enterprise Value Model, that the value of Getty should be about $1.1 billion higher than it is currently trading and that its stock price should be trading about 100% higher than it currently trades," Trillium said.

Trillium sees a path to add $1.1 billion in shareholder value, which would allow for the stock to trade around $13 per share.

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GETY Price Action: Getty shares were up 11.7% at $7.26 at time of publication, according to Benzinga Pro.

This illustration was generated using artificial intelligence via MidJourney.