Dropbox (NASDAQ:DBX) Hits New 1-Year High – What’s Next?

Dropbox, Inc. (NASDAQ:DBX) hit a new 52-week high during trading on Friday . The stock traded as high as $36.37 and last traded at $36.01, with a volume of 604908 shares traded. The stock had previously closed at $35.88.

Analyst Ratings Changes

A number of brokerages recently weighed in on DBX. Wall Street Zen downgraded shares of Dropbox from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Zacks Research lowered shares of Dropbox from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 19th. Weiss Ratings upgraded shares of Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, August 13th. Bank of America reaffirmed an “underperform” rating on shares of Dropbox in a report on Friday, August 7th. Finally, Citigroup upped their target price on shares of Dropbox from $28.00 to $33.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. One investment analyst has rated the stock with a Buy rating, four have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, Dropbox presently has a consensus rating of “Reduce” and a consensus target price of $28.25.

Dropbox Stock Performance

The company has a market cap of $8.13 billion, a PE ratio of 20.01, a PEG ratio of 5.15 and a beta of 0.64. The stock’s 50 day moving average price is $31.08 and its 200-day moving average price is $27.33.

Dropbox (NASDAQ:DBX) last issued its earnings results on Thursday, August 6th. The company reported $0.75 EPS for the quarter, topping analysts’ consensus estimates of $0.74 by $0.01. The company had revenue of $631.50 million for the quarter, compared to analysts’ expectations of $626.69 million. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. The firm’s revenue was up .9% compared to the same quarter last year. During the same quarter last year, the company earned $0.71 EPS. On average, analysts anticipate that Dropbox, Inc. will post 1.93 EPS for the current year.

Insider Activity

In related 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 transaction of $386,761.16. Following the transaction, the chief technology officer directly owned 471,052 shares in the company, valued at $16,077,004.76. This trade represents a 2.35% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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, Director Karen Peacock sold 2,000 shares of the business’s stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $33.00, for a total value of $66,000.00. Following the completion of the sale, the director owned 22,366 shares of the company’s stock, valued at $738,078. The trade was a 8.21% 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. In the last ninety days, insiders sold 61,041 shares of company stock valued at $1,896,492. Company insiders own 35.48% of the company’s stock.

Institutional Investors Weigh In On Dropbox

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. LSV Asset Management boosted its position in Dropbox by 1.1% during the 4th quarter. LSV Asset Management now owns 11,735,641 shares of the company’s stock valued at $326,251,000 after buying an additional 121,999 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Dropbox by 12.7% during the first quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company’s stock worth $193,886,000 after purchasing an additional 960,109 shares during the period. California State Teachers Retirement System grew its stake in shares of Dropbox by 2,565.8% in the second quarter. California State Teachers Retirement System now owns 5,504,631 shares of the company’s stock worth $151,212,000 after purchasing an additional 5,298,138 shares during the last quarter. Jacobs Levy Equity Management Inc. increased its holdings in Dropbox by 1.4% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 5,095,485 shares of the company’s stock valued at $153,935,000 after purchasing an additional 70,867 shares during the period. Finally, Wedge Capital Management L L P NC raised its position in Dropbox by 26.4% during the 2nd 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 last quarter. 94.84% of the stock is currently owned by institutional investors.

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.