Dropbox (NASDAQ:DBX) Reaches New 52-Week High – Here’s Why

Dropbox, Inc. (NASDAQ:DBX)’s share price hit a new 52-week high on Wednesday . The stock traded as high as $32.72 and last traded at $33.1950, with a volume of 217984 shares trading hands. The stock had previously closed at $32.06.

Wall Street Analyst Weigh In

A number of research analysts have commented on DBX shares. Citigroup increased their target price on Dropbox from $27.00 to $28.00 and gave the stock a “neutral” rating in a report on Monday, May 11th. Wall Street Zen raised Dropbox from a “hold” rating to a “buy” rating in a research report on Sunday, June 28th. Weiss Ratings restated a “hold (c)” rating on shares of Dropbox in a research note on Monday, May 4th. Finally, Royal Bank Of Canada restated an “outperform” rating on shares of Dropbox in a research note on Monday, June 1st. One research analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus target price of $27.00.

Dropbox Price Performance

The stock’s fifty day simple moving average is $28.20 and its 200-day simple moving average is $26.15. The stock has a market cap of $7.49 billion, a P/E ratio of 17.55, a PEG ratio of 3.65 and a beta of 0.66.

Dropbox (NASDAQ:DBX) last posted its earnings results on Thursday, May 7th. The company reported $0.76 EPS for the quarter, beating the consensus estimate of $0.71 by $0.05. The company had revenue of $629.50 million during 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%.The business’s revenue was up .8% compared to the same quarter last year. During the same period in the prior year, the company earned $0.70 earnings per share. Analysts forecast that Dropbox, Inc. will post 2.09 EPS for the current year.

Insider Activity

In other Dropbox news, Director Andrew William Moore sold 8,443 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $27.57, for a total value of $232,773.51. Following the sale, the director directly owned 4,737 shares of the company’s stock, valued at $130,599.09. This trade represents a 64.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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 firm’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $27.56, for a total value of $156,154.96. Following the completion of the sale, the chief technology officer owned 514,611 shares in the company, valued at $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 sold 127,313 shares of company stock worth $3,447,542 over the last 90 days. Insiders own 35.48% of the company’s stock.

Institutional Trading of Dropbox

Several hedge funds have recently bought and sold shares of DBX. WealthCollab LLC raised its stake in Dropbox by 20.6% during the 4th quarter. WealthCollab LLC now owns 2,356 shares of the company’s stock valued at $65,000 after acquiring an additional 403 shares in the last quarter. Parallel Advisors LLC grew its stake in shares of Dropbox by 8.3% in the fourth quarter. Parallel Advisors LLC now owns 5,765 shares of the company’s stock worth $160,000 after purchasing an additional 440 shares in the last quarter. Lakewood Asset Management LLC grew its stake in shares of Dropbox by 1.0% in the fourth quarter. Lakewood Asset Management LLC now owns 44,905 shares of the company’s stock worth $1,248,000 after purchasing an additional 458 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Dropbox by 1.8% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 26,254 shares of the company’s stock valued at $730,000 after purchasing an additional 466 shares during the period. Finally, Merit Financial Group LLC increased its holdings in shares of Dropbox by 4.4% during the third quarter. Merit Financial Group LLC now owns 11,385 shares of the company’s stock valued at $344,000 after purchasing an additional 480 shares during the period. 94.84% of the stock is currently owned by institutional investors.

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.