Dropbox (NASDAQ:DBX) Sets New 1-Year High – Here’s Why

Shares of Dropbox, Inc. (NASDAQ:DBX) reached 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 trading hands. The stock had previously closed at $32.56.

Analyst Ratings Changes

DBX has been the subject of a number of recent research reports. Weiss Ratings reiterated a “hold (c)” rating on shares of Dropbox in a research note on Friday. Royal Bank Of Canada restated an “outperform” rating on shares of Dropbox in a research note on Monday, June 1st. Citigroup upped their price target on shares of Dropbox from $27.00 to $28.00 and gave the stock a “neutral” rating in a research report on Monday, May 11th. Finally, Wall Street Zen raised shares of Dropbox from a “hold” rating to a “buy” rating in a research note on Sunday, June 28th. One 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’s stock. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus price target of $27.00.

Dropbox Price Performance

The company has a 50-day moving average price of $28.42 and a 200 day moving average price of $26.23. The firm has a market capitalization of $7.71 billion, a PE ratio of 18.06, a P/E/G ratio of 3.57 and a beta of 0.64.

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

Insiders Place Their Bets

In other Dropbox news, CTO Ali Dasdan sold 5,666 shares of the company’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $27.56, for a total value of $156,154.96. Following the completion of the transaction, the chief technology officer directly owned 514,611 shares in the company, valued at $14,182,679.16. This represents a 1.09% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 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, 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 transaction of $973,448.08. 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. Insiders sold a total of 129,313 shares of company stock worth $3,513,542 over the last ninety days. 35.48% of the stock is owned by company insiders.

Hedge Funds Weigh In On Dropbox

Institutional investors have recently bought and sold shares of the stock. Wedge Capital Management L L P NC lifted its stake in Dropbox by 26.4% in 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 purchasing an additional 627,111 shares in the last quarter. Baron Wealth Management LLC purchased a new position in shares of Dropbox during the second quarter valued at about $263,000. GAMMA Investing LLC grew its position in shares of Dropbox by 26.2% during the second quarter. GAMMA Investing LLC now owns 9,554 shares of the company’s stock valued at $262,000 after purchasing an additional 1,981 shares in the last quarter. Versant Capital Management Inc increased its holdings in shares of Dropbox by 23.3% in the second quarter. Versant Capital Management Inc now owns 11,559 shares of the company’s stock worth $318,000 after purchasing an additional 2,182 shares during the last quarter. Finally, Redwood Investment Management LLC increased its holdings in shares of Dropbox by 15.1% in the first quarter. Redwood Investment Management LLC now owns 45,701 shares of the company’s stock worth $1,038,000 after purchasing an additional 6,009 shares during the last quarter. 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.