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

Dropbox, Inc. (NASDAQ:DBX) shares 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.

Analysts Set New Price Targets

A number of research analysts recently weighed in on DBX shares. Wall Street Zen lowered Dropbox from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Citigroup raised their target price on Dropbox from $28.00 to $33.00 and gave the company a “neutral” rating in a report on Friday, August 7th. William Blair upgraded shares of Dropbox from an “underperform” rating to a “market perform” rating in a research report on Friday, August 7th. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of Dropbox in a research note on Monday, June 1st. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Dropbox in a report on Friday, July 31st. One research analyst has rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Dropbox has a consensus rating of “Reduce” and an average target price of $28.25.

Dropbox Price Performance

The company has a market capitalization of $8.38 billion, a PE ratio of 19.96, a P/E/G ratio of 4.66 and a beta of 0.64. The stock has a 50-day simple moving average of $29.43 and a 200 day simple moving average of $26.64.

Dropbox (NASDAQ:DBX) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.75 earnings per share for the quarter, beating analysts’ consensus estimates of $0.74 by $0.01. The business had revenue of $631.50 million during the quarter, compared to analysts’ expectations of $626.69 million. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%.The business’s revenue for the quarter was up .9% on a year-over-year basis. During the same quarter last year, the business posted $0.71 earnings per share. As a group, research analysts predict that Dropbox, Inc. will post 2.09 EPS for the current fiscal year.

Insider Activity at Dropbox

In other Dropbox news, CEO Ashraf Alkarmi sold 22,700 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $27.86, for a total value of $632,422.00. Following the sale, the chief executive officer owned 1,080,746 shares of the company’s stock, valued at $30,109,583.56. This represents a 2.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CTO Ali Dasdan sold 5,666 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $27.56, for a total transaction 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. 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. Insiders have sold a total of 93,447 shares of company stock valued at $2,591,681 in the last quarter. 35.48% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Dropbox

Hedge funds have recently bought and sold shares of the stock. Norges Bank purchased a new stake in Dropbox during the fourth quarter valued at about $69,909,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of Dropbox by 12.7% in 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 during the period. Arbejdsmarkedets Tillaegspension acquired a new position in shares of Dropbox in the 4th quarter valued at about $22,050,000. Wedge Capital Management L L P NC grew its holdings in shares of 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 purchasing an additional 627,111 shares during the period. Finally, Allianz Asset Management GmbH increased its position 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 purchasing an additional 596,440 shares in the last quarter. Hedge funds and other institutional investors own 94.84% of the company’s stock.

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.