Dropbox (NASDAQ:DBX) Reaches New 52-Week High – Should You Buy?

Dropbox, Inc. (NASDAQ:DBX) shares 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. The stock had previously closed at $32.06.

Analyst Upgrades and Downgrades

DBX has been the subject of a number of research reports. Wall Street Zen raised Dropbox from a “hold” rating to a “buy” rating in a research report on Sunday, June 28th. Citigroup raised their price objective on Dropbox from $27.00 to $28.00 and gave the stock a “neutral” rating in a report on Monday, May 11th. 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 Monday, May 4th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus price target of $27.00.

Dropbox Stock Performance

The stock has a fifty day simple moving average of $27.99 and a two-hundred day simple moving average of $26.08. The stock has a market cap of $7.72 billion, a PE ratio of 18.09, a PEG ratio of 3.34 and a beta of 0.66.

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

Insider Buying and Selling at Dropbox

In related news, Director Andrew William Moore sold 8,443 shares of Dropbox stock in a transaction on Monday, May 18th. The shares were sold at an average price of $27.57, for a total transaction of $232,773.51. Following the sale, the director owned 4,737 shares of the company’s stock, valued at $130,599.09. The trade was a 64.06% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Houston sold 30,332 shares of the business’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $27.50, for a total transaction of $834,130.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 129,082 shares of company stock worth $3,489,910. 35.48% of the stock is currently owned by insiders.

Institutional Trading of Dropbox

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Wedge Capital Management L L P NC lifted its stake in shares of Dropbox by 26.4% in the second quarter. Wedge Capital Management L L P NC now owns 3,005,173 shares of the company’s stock worth $82,552,000 after acquiring an additional 627,111 shares in the last quarter. Baron Wealth Management LLC purchased a new position in Dropbox in the second quarter valued at about $263,000. GAMMA Investing LLC grew its stake in Dropbox by 26.2% during the 2nd 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 grew its stake in Dropbox by 23.3% during the 2nd quarter. Versant Capital Management Inc now owns 11,559 shares of the company’s stock valued at $318,000 after purchasing an additional 2,182 shares in the last quarter. Finally, Redwood Investment Management LLC increased its holdings in Dropbox by 15.1% during the 1st 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.

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.