Dropbox Target of Unusually Large Options Trading (NASDAQ:DBX)

Dropbox, Inc. (NASDAQ:DBX) saw some unusual options trading on Monday. Investors acquired 31,285 call options on the stock. This represents an increase of 2,616% compared to the average volume of 1,152 call options.

Wall Street Analysts Forecast Growth

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

Dropbox Trading Up 4.6%

Shares of DBX traded up $1.35 during mid-day trading on Monday, hitting $30.54. The company’s stock had a trading volume of 5,716,581 shares, compared to its average volume of 3,929,896. The firm has a 50-day simple moving average of $27.85 and a 200 day simple moving average of $26.02. The firm has a market capitalization of $7.12 billion, a P/E ratio of 16.69, a P/E/G ratio of 3.20 and a beta of 0.66. Dropbox has a 1-year low of $21.69 and a 1-year high of $32.40.

Dropbox (NASDAQ:DBX) last announced its quarterly earnings data 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. The firm had revenue of $629.50 million for the quarter, compared to analyst estimates of $620.56 million. Dropbox had a negative return on equity of 30.01% and a net margin of 18.71%.Dropbox’s quarterly revenue was up .8% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.70 earnings per share. As a group, sell-side analysts predict that Dropbox will post 2.09 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Andrew William Moore sold 8,443 shares of the company’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 $232,773.51. Following the completion of the sale, the director owned 4,737 shares in the company, valued at $130,599.09. This represents a 64.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Ali Dasdan sold 5,666 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $27.56, for a total value of $156,154.96. Following the sale, the chief technology officer directly owned 514,611 shares of the company’s stock, valued at approximately $14,182,679.16. This represents a 1.09% decrease in their ownership of the stock. 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 ninety days, insiders sold 129,082 shares of company stock worth $3,489,910. 35.48% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Dropbox

Institutional investors and hedge funds have recently made changes to their positions in the stock. Empowered Funds LLC lifted its stake in shares of Dropbox by 7.3% in the first quarter. Empowered Funds LLC now owns 38,795 shares of the company’s stock valued at $1,036,000 after purchasing an additional 2,655 shares during the period. Cetera Investment Advisers grew its position in Dropbox by 10.8% during the second quarter. Cetera Investment Advisers now owns 24,623 shares of the company’s stock worth $704,000 after buying an additional 2,405 shares during the period. EverSource Wealth Advisors LLC grew its position in Dropbox by 88.0% during the second quarter. EverSource Wealth Advisors LLC now owns 1,681 shares of the company’s stock worth $48,000 after buying an additional 787 shares during the period. Cresset Asset Management LLC increased its holdings in Dropbox by 75.8% in the second quarter. Cresset Asset Management LLC now owns 15,230 shares of the company’s stock valued at $436,000 after buying an additional 6,569 shares in the last quarter. Finally, Federated Hermes Inc. increased its holdings in Dropbox by 360.9% in the second quarter. Federated Hermes Inc. now owns 117,852 shares of the company’s stock valued at $3,371,000 after buying an additional 92,280 shares in 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.