Dropbox (NASDAQ:DBX) Hits New 12-Month High – Here’s Why

Dropbox, Inc. (NASDAQ:DBX)’s share price hit a new 52-week high on Thursday . The company traded as high as $35.83 and last traded at $35.9180, with a volume of 2816561 shares changing hands. The stock had previously closed at $33.63.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. Wall Street Zen lowered Dropbox from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Citigroup lifted their price objective on Dropbox from $28.00 to $33.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. Royal Bank Of Canada reiterated an “outperform” rating on shares of Dropbox in a report on Monday, June 1st. William Blair raised shares of Dropbox from an “underperform” rating to a “market perform” rating in a research report on Friday, August 7th. Finally, Bank of America restated an “underperform” rating on shares of Dropbox in a report on Friday, August 7th. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average price target of $28.25.

Dropbox Price Performance

The firm has a 50-day simple moving average of $29.75 and a 200 day simple moving average of $26.76. The company has a market capitalization of $8.03 billion, a PE ratio of 19.12, a price-to-earnings-growth ratio of 4.91 and a beta of 0.64.

Dropbox (NASDAQ:DBX) last issued its earnings results on Thursday, August 6th. The company reported $0.75 earnings per share for the quarter, topping the consensus estimate of $0.74 by $0.01. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%.The company had revenue of $631.50 million during the quarter, compared to the consensus estimate of $626.69 million. During the same quarter in the prior year, the business earned $0.71 earnings per share. The company’s revenue was up .9% compared to the same quarter last year. Equities research analysts expect that Dropbox, Inc. will post 2.09 EPS for the current fiscal year.

Insider Transactions at Dropbox

In other news, insider William T. Yoon sold 7,230 shares of Dropbox stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $27.57, for a total transaction of $199,331.10. Following the sale, the insider owned 366,963 shares in the company, valued at $10,117,169.91. This trade represents a 1.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 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, CTO Ali Dasdan sold 5,666 shares of the business’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $27.56, for a total transaction of $156,154.96. Following the transaction, the chief technology officer directly owned 514,611 shares in the company, valued at approximately $14,182,679.16. The trade was a 1.09% decrease in their ownership of the stock. 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 85,225 shares of company stock worth $2,373,756 over the last 90 days. 35.48% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Dropbox

A number of large investors have recently added to or reduced their stakes in the company. Pacer Advisors Inc. boosted its position in Dropbox by 2.8% in the 1st quarter. Pacer Advisors Inc. now owns 2,047,966 shares of the company’s stock valued at $46,530,000 after buying an additional 55,921 shares during the last quarter. Arbejdsmarkedets Tillaegspension acquired a new stake in shares of Dropbox during the fourth quarter valued at about $22,050,000. Pictet Asset Management Holding SA increased its position in shares of Dropbox by 317.2% during the fourth quarter. Pictet Asset Management Holding SA now owns 125,144 shares of the company’s stock worth $3,479,000 after acquiring an additional 95,146 shares during the last quarter. ING Groep NV purchased a new stake in shares of Dropbox during the fourth quarter worth about $1,223,000. Finally, Jupiter Asset Management Ltd. acquired a new position in shares of Dropbox in the fourth quarter worth about $1,591,000. 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.