Dropbox (NASDAQ:DBX) Hits New 1-Year High – Still a Buy?

Dropbox, Inc. (NASDAQ:DBX) hit a new 52-week high during mid-day trading on Monday. The company traded as high as $38.17 and last traded at $38.1090, with a volume of 173,389 shares changing hands. The stock had previously closed at $37.83.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on DBX. Royal Bank Of Canada restated an “outperform” rating and set a $42.00 target price on shares of Dropbox in a report on Thursday, September 3rd. Bank of America reissued an “underperform” rating on shares of Dropbox in a research report on Friday, August 7th. Weiss Ratings raised shares of Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, August 13th. William Blair upgraded shares of Dropbox from an “underperform” rating to a “market perform” rating in a report on Friday, August 7th. Finally, Wall Street Zen downgraded shares of Dropbox from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus target price of $29.75.

Dropbox Stock Performance

The stock’s 50 day moving average is $35.10 and its two-hundred day moving average is $28.89.

Dropbox (NASDAQ:DBX) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.74 by $0.01. The firm had revenue of $631.50 million for the quarter, compared to analysts’ expectations of $626.69 million. Dropbox’s revenue for the quarter was up .9% on a year-over-year basis. During the same period last year, the firm posted $0.71 earnings per share. As a group, analysts predict that Dropbox, Inc. will post 1.94 EPS for the current fiscal year.

Insider Activity at Dropbox

In other news, CEO Andrew Houston sold 29,500 shares of the company’s stock in a transaction on Monday, October 12th. The shares were sold at an average price of $35.09, for a total value of $1,035,155.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Sarah Schubach sold 2,056 shares of Dropbox stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $35.79, for a total transaction of $73,584.24. Following the sale, the chief accounting officer owned 130,821 shares in the company, valued at $4,682,083.59. This represents a 1.55% 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. Insiders have sold 949,100 shares of company stock valued at $32,861,493 in the last quarter. Company insiders own 35.48% of the company’s stock.

Institutional Trading of Dropbox

A number of large investors have recently made changes to their positions in the company. Elevation Wealth Partners LLC boosted its holdings in shares of Dropbox by 63.0% in the third quarter. Elevation Wealth Partners LLC now owns 1,363 shares of the company’s stock valued at $46,000 after acquiring an additional 527 shares during the period. EverSource Wealth Advisors LLC boosted its stake in Dropbox by 68.1% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,052 shares of the company’s stock worth $47,000 after purchasing an additional 831 shares during the period. Farther Finance Advisors LLC grew its position in Dropbox by 166.5% during the 3rd quarter. Farther Finance Advisors LLC now owns 2,617 shares of the company’s stock worth $89,000 after purchasing an additional 1,635 shares during the last quarter. Signaturefd LLC increased its stake in Dropbox by 103.4% in the third quarter. Signaturefd LLC now owns 5,616 shares of the company’s stock valued at $190,000 after purchasing an additional 2,855 shares during the period. Finally, VestGen Advisors LLC acquired a new position in Dropbox in the third quarter valued at $223,000. 94.84% of the stock is owned by institutional investors and hedge funds.

About Dropbox

Dropbox, Inc (NASDAQ: DBX) is a software company that provides cloud-based tools for storing, organizing, sharing and collaborating on files. Its platform enables individuals, businesses and teams to access documents, photos and other content across connected devices, synchronize files and manage shared workflows.

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