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

Dropbox, Inc. (NASDAQ:DBX) was the recipient of unusually large options trading on Wednesday. Stock investors acquired 3,282 put options on the company. This represents an increase of 48% compared to the typical daily volume of 2,217 put options.

Dropbox Trading Up 0.6%

NASDAQ:DBX traded up $0.22 during trading hours on Wednesday, reaching $34.48. 905,722 shares of the company traded hands, compared to its average volume of 3,945,647. The business’s 50-day moving average price is $31.62 and its two-hundred day moving average price is $27.55. Dropbox has a 1 year low of $21.69 and a 1 year high of $36.37. The stock has a market capitalization of $7.78 billion, a P/E ratio of 19.16, a P/E/G ratio of 5.20 and a beta of 0.64.

Dropbox (NASDAQ:DBX) last released 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 firm had revenue of $631.50 million for the quarter, compared to analysts’ expectations of $626.69 million. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%.The company’s quarterly revenue was up .9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.71 earnings per share. As a group, equities analysts anticipate that Dropbox will post 1.93 EPS for the current year.

Wall Street Analysts Forecast Growth

DBX has been the topic of a number of research reports. Citigroup lifted their target price on shares of Dropbox from $28.00 to $33.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. Zacks Research downgraded shares of Dropbox from a “hold” rating to a “strong sell” rating in a research note on Wednesday, August 19th. Wall Street Zen lowered shares of Dropbox from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Weiss Ratings raised Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, August 13th. Finally, Royal Bank Of Canada reiterated an “outperform” rating on shares of Dropbox in a report on Monday, June 1st. One investment analyst has rated the stock with a Buy rating, four have given a Hold rating and three 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 target price of $28.25.

Insiders Place Their Bets

In related news, CAO Sarah Elizabeth Schubach sold 1,631 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $34.01, for a total transaction of $55,470.31. Following the completion of the transaction, the chief accounting officer owned 116,781 shares in the company, valued at $3,971,721.81. This represents a 1.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Karen Peacock sold 2,000 shares of the firm’s stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $33.00, for a total value of $66,000.00. Following the completion of the sale, the director directly owned 22,366 shares of the company’s stock, valued at $738,078. The trade was a 8.21% 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. Insiders have sold a total of 37,036 shares of company stock valued at $1,227,974 in the last 90 days. 35.48% of the stock is owned by corporate insiders.

Institutional Trading of Dropbox

Institutional investors and hedge funds have recently bought and sold shares of the company. California State Teachers Retirement System lifted 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 buying an additional 5,298,138 shares in the last quarter. Norges Bank purchased a new position in Dropbox in the 4th quarter worth approximately $69,909,000. Arrowstreet Capital Limited Partnership raised its holdings in Dropbox by 12.7% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company’s stock worth $193,886,000 after acquiring an additional 960,109 shares during the last quarter. Arbejdsmarkedets Tillaegspension bought a new position in Dropbox in the 4th quarter valued at approximately $22,050,000. Finally, Wedge Capital Management L L P NC lifted its position in Dropbox by 26.4% in 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 acquiring an additional 627,111 shares in 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.