Dropbox, Inc. (NASDAQ:DBX) Sees Large Increase in Short Interest

Dropbox, Inc. (NASDAQ:DBX) saw a large increase in short interest during the month of March. As of March 31st, there was short interest totalling 21,150,000 shares, an increase of 7.5% from the March 15th total of 19,680,000 shares. Approximately 8.4% of the company’s stock are sold short. Based on an average daily volume of 4,130,000 shares, the days-to-cover ratio is currently 5.1 days.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. Citigroup reduced their price target on shares of Dropbox from $31.00 to $27.00 and set a “neutral” rating for the company in a report on Friday, March 22nd. KeyCorp increased their price target on shares of Dropbox from $32.00 to $37.00 and gave the company an “overweight” rating in a report on Friday, January 19th. JMP Securities downgraded shares of Dropbox from an “outperform” rating to a “market perform” rating in a report on Friday, February 16th. Bank of America downgraded shares of Dropbox from a “buy” rating to an “underperform” rating and reduced their price objective for the stock from $34.00 to $28.00 in a report on Friday, February 16th. Finally, JPMorgan Chase & Co. downgraded shares of Dropbox from an “overweight” rating to a “neutral” rating and reduced their price objective for the stock from $33.00 to $30.00 in a report on Friday, February 16th. Three research analysts have rated the stock with a sell rating, four have given a hold rating and three have assigned a buy rating to the company. According to MarketBeat, Dropbox currently has an average rating of “Hold” and a consensus price target of $29.78.

Insider Transactions at Dropbox

In other news, CFO Timothy Regan sold 3,000 shares of the stock in a transaction on Tuesday, January 30th. The shares were sold at an average price of $32.50, for a total transaction of $97,500.00. Following the transaction, the chief financial officer now owns 434,761 shares in the company, valued at approximately $14,129,732.50. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. In related news, CEO Andrew Houston sold 164,000 shares of the firm’s stock in a transaction on Tuesday, March 5th. The shares were sold at an average price of $23.86, for a total value of $3,913,040.00. Following the transaction, the chief executive officer now directly owns 8,266,666 shares in the company, valued at approximately $197,242,650.76. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Timothy Regan sold 3,000 shares of the firm’s stock in a transaction on Tuesday, January 30th. The shares were sold at an average price of $32.50, for a total transaction of $97,500.00. Following the completion of the transaction, the chief financial officer now owns 434,761 shares in the company, valued at $14,129,732.50. The disclosure for this sale can be found here. Insiders have sold a total of 180,039 shares of company stock worth $4,324,757 in the last 90 days. 26.40% of the stock is owned by insiders.

Institutional Investors Weigh In On Dropbox

A number of institutional investors and hedge funds have recently modified their holdings of the business. Wedge Capital Management L L P NC boosted its holdings in shares of Dropbox by 1,287.7% in the third quarter. Wedge Capital Management L L P NC now owns 2,725,139 shares of the company’s stock valued at $74,206,000 after buying an additional 2,528,754 shares during the period. Baupost Group LLC MA boosted its holdings in Dropbox by 30.6% during the first quarter. Baupost Group LLC MA now owns 10,571,046 shares of the company’s stock worth $245,777,000 after purchasing an additional 2,476,021 shares during the last quarter. LSV Asset Management boosted its holdings in Dropbox by 119.4% during the fourth quarter. LSV Asset Management now owns 3,305,730 shares of the company’s stock worth $97,453,000 after purchasing an additional 1,799,030 shares during the last quarter. Voya Investment Management LLC boosted its holdings in Dropbox by 260.7% during the fourth quarter. Voya Investment Management LLC now owns 1,834,002 shares of the company’s stock worth $54,066,000 after purchasing an additional 1,325,518 shares during the last quarter. Finally, AQR Capital Management LLC boosted its holdings in Dropbox by 102.3% during the first quarter. AQR Capital Management LLC now owns 2,556,821 shares of the company’s stock worth $54,230,000 after purchasing an additional 1,292,761 shares during the last quarter. 94.84% of the stock is owned by institutional investors.

Dropbox Stock Performance

DBX traded up $0.08 during midday trading on Wednesday, hitting $23.02. The company had a trading volume of 417,136 shares, compared to its average volume of 3,941,307. The company has a market capitalization of $7.92 billion, a PE ratio of 17.38, a P/E/G ratio of 2.58 and a beta of 0.71. Dropbox has a twelve month low of $19.55 and a twelve month high of $33.43. The firm’s 50-day simple moving average is $25.33 and its 200-day simple moving average is $27.55.

Dropbox (NASDAQ:DBX) last posted its quarterly earnings data on Thursday, February 15th. The company reported $0.25 earnings per share for the quarter, missing the consensus estimate of $0.26 by ($0.01). The company had revenue of $635.00 million during the quarter, compared to analyst estimates of $630.77 million. Dropbox had a net margin of 18.13% and a negative return on equity of 120.82%. As a group, sell-side analysts anticipate that Dropbox will post 1.14 EPS for the current fiscal year.

About Dropbox

Dropbox, Inc provides a content collaboration platform worldwide. The company's platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. It serves customers in professional services, technology, media, education, industrial, consumer and retail, and financial services industries.