Dropbox (NASDAQ:DBX) Hits New 12-Month High – What’s Next?

Dropbox, Inc. (NASDAQ:DBX) hit a new 52-week high during mid-day trading on Monday . The company traded as high as $36.86 and last traded at $36.4720, with a volume of 332978 shares trading hands. The stock had previously closed at $35.56.

Analysts Set New Price Targets

Several brokerages have commented on DBX. William Blair upgraded shares of Dropbox from an “underperform” rating to a “market perform” rating in a research note on Friday, August 7th. Wall Street Zen cut Dropbox from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Citigroup boosted their target price on Dropbox from $28.00 to $33.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. Bank of America reissued an “underperform” rating on shares of Dropbox in a research note on Friday, August 7th. Finally, Weiss Ratings upgraded Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, August 13th. One analyst has rated the stock with a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average target price of $30.75.

Dropbox Price Performance

The company’s 50-day simple moving average is $32.83 and its 200 day simple moving average is $28.12. The firm has a market cap of $8.23 billion, a P/E ratio of 20.30, a price-to-earnings-growth ratio of 5.24 and a beta of 0.65.

Dropbox (NASDAQ:DBX) last posted its earnings results on Thursday, August 6th. The company reported $0.75 earnings per share for the quarter, topping analysts’ consensus estimates of $0.74 by $0.01. The firm had revenue of $631.50 million for the quarter, compared to the consensus estimate of $626.69 million. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. The business’s quarterly revenue was up .9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.71 EPS. Analysts anticipate that Dropbox, Inc. will post 1.94 EPS for the current fiscal year.

Insider Activity at Dropbox

In other news, CTO Ali Dasdan sold 11,332 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $34.13, for a total value of $386,761.16. Following the completion of the sale, the chief technology officer directly owned 471,052 shares of the company’s stock, valued at $16,077,004.76. This trade represents a 2.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Sarah Schubach sold 1,631 shares of Dropbox stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $35.50, for a total value of $57,900.50. Following the completion of the transaction, the chief accounting officer owned 115,150 shares of the company’s stock, valued at approximately $4,087,825. This trade represents a 1.40% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 54,341 shares of company stock valued at $1,841,307 over the last ninety days. 35.48% of the stock is currently owned by company insiders.

Institutional Trading of Dropbox

A number of institutional investors have recently bought and sold shares of DBX. Parallel Advisors LLC lifted its stake in Dropbox by 8.3% in the fourth quarter. Parallel Advisors LLC now owns 5,765 shares of the company’s stock worth $160,000 after acquiring an additional 440 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its position in shares of Dropbox by 1.8% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 26,254 shares of the company’s stock valued at $730,000 after purchasing an additional 466 shares during the last quarter. Merit Financial Group LLC raised its holdings in shares of Dropbox by 4.4% in the 3rd quarter. Merit Financial Group LLC now owns 11,385 shares of the company’s stock valued at $344,000 after purchasing an additional 480 shares in the last quarter. Geneos Wealth Management Inc. raised its holdings in shares of Dropbox by 78.0% in the 2nd quarter. Geneos Wealth Management Inc. now owns 1,273 shares of the company’s stock valued at $36,000 after purchasing an additional 558 shares in the last quarter. Finally, Captrust Financial Advisors lifted its position in shares of Dropbox by 0.4% during the 3rd quarter. Captrust Financial Advisors now owns 133,608 shares of the company’s stock worth $4,036,000 after purchasing an additional 563 shares during the last quarter. 94.84% of the stock is currently owned by institutional investors.

Dropbox Company Profile

Dropbox, Inc (NASDAQ: DBX) is a technology company that provides cloud-based file storage, synchronization, sharing and collaboration services. Its platform enables individuals, businesses and organizations to store files online, access them across connected devices, and collaborate on documents and other digital content.

The company’s offerings include Dropbox for file management and collaboration, Dropbox Paper for shared document and project work, Dropbox Sign for electronic signatures, and DocSend for securely sharing and tracking business documents.