Dropbox (NASDAQ:DBX) Reaches New 12-Month High – Still a Buy?

Dropbox, Inc. (NASDAQ:DBX) hit a new 52-week high on Tuesday . The company traded as high as $33.67 and last traded at $33.05, with a volume of 3188136 shares traded. The stock had previously closed at $32.56.

Analyst Upgrades and Downgrades

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

Dropbox Trading Up 1.5%

The business’s 50 day simple moving average is $28.42 and its two-hundred day simple moving average is $26.23. The firm has a market capitalization of $7.71 billion, a PE ratio of 18.06, a price-to-earnings-growth ratio of 3.57 and a beta of 0.64.

Dropbox (NASDAQ:DBX) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.76 earnings per share (EPS) 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 firm had revenue of $629.50 million for the quarter, compared to the consensus estimate of $620.56 million. During the same period last year, the business posted $0.70 EPS. The company’s revenue for the quarter was up .8% on a year-over-year basis. As a group, equities research analysts anticipate that Dropbox, Inc. will post 2.09 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO Andrew Houston sold 37,498 shares of the stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $25.96, for a total value of $973,448.08. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider William T. Yoon sold 7,230 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $27.57, for a total transaction of $199,331.10. Following the completion of the transaction, the insider directly owned 366,963 shares in the company, valued at approximately $10,117,169.91. The trade was a 1.93% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 129,313 shares of company stock valued at $3,513,542 in the last 90 days. Insiders own 35.48% of the company’s stock.

Institutional Trading of Dropbox

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Palisade Asset Management LLC purchased a new position in shares of Dropbox during the 3rd quarter worth $30,000. Kestra Advisory Services LLC purchased a new stake in shares of Dropbox in the 4th quarter worth $31,000. Larson Financial Group LLC raised its holdings in Dropbox by 228.0% in the 4th quarter. Larson Financial Group LLC now owns 1,138 shares of the company’s stock worth $32,000 after purchasing an additional 791 shares during the period. Geneos Wealth Management Inc. lifted its position in Dropbox by 78.0% during the second quarter. Geneos Wealth Management Inc. now owns 1,273 shares of the company’s stock valued at $36,000 after purchasing an additional 558 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd purchased a new position in Dropbox during the fourth quarter valued at $38,000. 94.84% of the stock is owned by hedge funds and other 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.