Investors Purchase Large Volume of Call Options on Dropbox (NASDAQ:DBX)

Dropbox, Inc. (NASDAQ:DBX) was the recipient of some unusual options trading on Monday. Stock traders acquired 31,285 call options on the stock. This is an increase of 2,616% compared to the average daily volume of 1,152 call options.

Dropbox Price Performance

Dropbox stock traded up $1.35 during mid-day trading on Monday, hitting $30.54. 5,716,581 shares of the company were exchanged, compared to its average volume of 3,929,896. Dropbox has a 12-month low of $21.69 and a 12-month high of $32.40. The company has a market capitalization of $7.12 billion, a P/E ratio of 16.69, a PEG ratio of 3.20 and a beta of 0.66. The business’s 50 day simple moving average is $27.85 and its two-hundred day simple moving average is $26.02.

Dropbox (NASDAQ:DBX) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.71 by $0.05. The business had revenue of $629.50 million for the quarter, compared to the consensus estimate of $620.56 million. Dropbox had a negative return on equity of 30.01% and a net margin of 18.71%.The business’s revenue was up .8% on a year-over-year basis. During the same period in the prior year, the business earned $0.70 earnings per share. Equities research analysts predict that Dropbox will post 2.09 earnings per share for the current year.

Insider Transactions at Dropbox

In related news, CEO Andrew Houston sold 37,498 shares of Dropbox stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $25.96, for a total transaction of $973,448.08. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider William T. Yoon sold 7,230 shares of the business’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $27.57, for a total value of $199,331.10. Following the sale, the insider owned 366,963 shares in the company, valued at approximately $10,117,169.91. The trade was a 1.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders sold a total of 129,082 shares of company stock worth $3,489,910 over the last ninety days. 35.48% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Palisade Asset Management LLC acquired a new stake in shares of Dropbox during the 3rd quarter worth about $30,000. Kestra Advisory Services LLC purchased a new stake in shares of Dropbox during the fourth quarter worth about $31,000. Larson Financial Group LLC raised its position in shares of Dropbox by 228.0% in the fourth quarter. Larson Financial Group LLC now owns 1,138 shares of the company’s stock valued at $32,000 after buying an additional 791 shares during the last quarter. Geneos Wealth Management Inc. raised its position in shares of Dropbox by 78.0% in the second quarter. Geneos Wealth Management Inc. now owns 1,273 shares of the company’s stock valued at $36,000 after buying an additional 558 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of Dropbox in the fourth quarter valued at approximately $38,000. 94.84% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities research analysts recently commented on DBX shares. Wall Street Zen raised shares of Dropbox from a “hold” rating to a “buy” rating in a research note on Sunday, June 28th. Citigroup lifted their target price on shares of Dropbox from $27.00 to $28.00 and gave the stock a “neutral” rating in a research report on Monday, May 11th. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of Dropbox in a report on Monday, June 1st. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Dropbox in a research report on Monday, May 4th. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus price target of $27.00.

Dropbox Company Profile

Dropbox, Inc (NASDAQ: DBX) is a leading provider of cloud-based file storage, collaboration, and productivity tools. Founded in 2007 and headquartered in San Francisco, California, the company offers a suite of services designed to help individuals and organizations securely store, share, and manage digital content. Dropbox has grown from a simple file-syncing application into an integrated collaboration platform used by millions of customers around the globe.

At its core, Dropbox provides cloud storage plans tailored for consumers and businesses.