Dropbox (NASDAQ:DBX) Reaches New 52-Week High – Should You Buy?

Dropbox, Inc. (NASDAQ:DBX)’s share price reached a new 52-week high during trading on Wednesday . The stock traded as high as $32.72 and last traded at $33.1950, with a volume of 217984 shares traded. The stock had previously closed at $32.06.

Wall Street Analyst Weigh In

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

Dropbox Trading Up 3.2%

The company’s 50 day simple moving average is $27.99 and its 200 day simple moving average is $26.08. The stock has a market capitalization of $7.72 billion, a PE ratio of 18.09, a PEG ratio of 3.34 and a beta of 0.66.

Dropbox (NASDAQ:DBX) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.76 earnings per share for the quarter, topping analysts’ consensus estimates of $0.71 by $0.05. Dropbox had a negative return on equity of 30.01% and a net margin of 18.71%.The company had revenue of $629.50 million for the quarter, compared to analyst estimates of $620.56 million. During the same quarter in the prior year, the company posted $0.70 EPS. The business’s revenue for the quarter was up .8% compared to the same quarter last year. As a group, analysts predict that Dropbox, Inc. will post 2.09 EPS for the current year.

Insider Transactions at Dropbox

In other Dropbox news, CTO Ali Dasdan sold 5,666 shares of Dropbox stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $27.56, for a total value of $156,154.96. Following the completion of the sale, the chief technology officer owned 514,611 shares in the company, valued at $14,182,679.16. The trade was a 1.09% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through 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, insider William T. Yoon sold 7,230 shares of the company’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $27.57, for a total transaction of $199,331.10. Following the transaction, the insider directly owned 366,963 shares of the company’s stock, valued at approximately $10,117,169.91. This represents a 1.93% decrease in their position. 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. In the last three months, insiders sold 129,082 shares of company stock valued at $3,489,910. Corporate insiders own 35.48% of the company’s stock.

Institutional Investors Weigh In On Dropbox

Several hedge funds have recently modified their holdings of the stock. Wedge Capital Management L L P NC grew its holdings in Dropbox by 26.4% in the second quarter. Wedge Capital Management L L P NC now owns 3,005,173 shares of the company’s stock valued at $82,552,000 after purchasing an additional 627,111 shares during the period. Baron Wealth Management LLC purchased a new position in Dropbox during the second quarter worth approximately $263,000. GAMMA Investing LLC raised its stake in Dropbox by 26.2% during the second quarter. GAMMA Investing LLC now owns 9,554 shares of the company’s stock worth $262,000 after purchasing an additional 1,981 shares during the period. Versant Capital Management Inc boosted its holdings in shares of Dropbox by 23.3% in the 2nd quarter. Versant Capital Management Inc now owns 11,559 shares of the company’s stock valued at $318,000 after purchasing an additional 2,182 shares during the last quarter. Finally, Redwood Investment Management LLC boosted its holdings in shares of Dropbox by 15.1% in the 1st quarter. Redwood Investment Management LLC now owns 45,701 shares of the company’s stock valued at $1,038,000 after purchasing an additional 6,009 shares during the last quarter. 94.84% of the stock is owned by institutional investors and hedge funds.

About Dropbox

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.