Dropbox (NASDAQ:DBX) Reaches New 1-Year High – Still a Buy?

Dropbox, Inc. (NASDAQ:DBX) hit a new 52-week high during mid-day trading on Tuesday . The stock 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.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on DBX. Citigroup boosted their target price on shares of Dropbox from $27.00 to $28.00 and gave the stock a “neutral” rating in a research note on Monday, May 11th. Wall Street Zen raised shares of Dropbox from a “hold” rating to a “buy” rating in a report on Sunday, June 28th. Weiss Ratings restated a “hold (c)” rating on shares of Dropbox in a research report on Friday, July 31st. Finally, Royal Bank Of Canada reaffirmed 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, three have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, Dropbox presently has an average rating of “Reduce” and a consensus price target of $27.00.

Dropbox Trading Up 1.4%

The stock has a market capitalization of $8.17 billion, a P/E ratio of 19.13, a PEG ratio of 3.78 and a beta of 0.64. The company has a fifty day simple moving average of $28.76 and a two-hundred day simple moving average of $26.35.

Dropbox (NASDAQ:DBX) last issued its earnings results on Thursday, May 7th. The company reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.71 by $0.05. The company had revenue of $629.50 million for the quarter, compared to analyst estimates of $620.56 million. Dropbox had a net margin of 18.71% and a negative return on equity of 30.01%. The company’s revenue for the quarter was up .8% on a year-over-year basis. During the same quarter last year, the firm earned $0.70 EPS. As a group, analysts forecast that Dropbox, Inc. will post 2.09 earnings per share for the current fiscal year.

Insider Transactions at Dropbox

In other Dropbox news, CEO Andrew Houston sold 37,498 shares of Dropbox stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $25.96, for a total transaction of $973,448.08. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider William T. Yoon sold 7,230 shares of the company’s stock in a transaction 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 of the company’s stock, valued at $10,117,169.91. The trade was a 1.93% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 quarter, insiders sold 130,945 shares of company stock valued at $3,565,129. 35.48% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Dropbox

Hedge funds have recently added to or reduced their stakes in the stock. Norges Bank bought a new position in shares of Dropbox during the 4th quarter valued at about $69,909,000. Arrowstreet Capital Limited Partnership increased its stake in Dropbox by 12.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company’s stock worth $193,886,000 after purchasing an additional 960,109 shares in the last quarter. Arbejdsmarkedets Tillaegspension bought a new stake in Dropbox during the 4th quarter worth approximately $22,050,000. Wedge Capital Management L L P NC raised its holdings in Dropbox by 26.4% during the 2nd quarter. Wedge Capital Management L L P NC now owns 3,005,173 shares of the company’s stock worth $82,552,000 after buying an additional 627,111 shares during the period. Finally, Allianz Asset Management GmbH raised its holdings in Dropbox by 28.1% during the 4th quarter. Allianz Asset Management GmbH now owns 2,720,372 shares of the company’s stock worth $75,626,000 after buying an additional 596,440 shares during the period. Institutional investors and hedge funds own 94.84% of the company’s stock.

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.