Dropbox (NASDAQ:DBX) Sees Strong Trading Volume – Here’s Why

Shares of Dropbox, Inc. (NASDAQ:DBX) saw unusually-strong trading volume on Tuesday. 10,392,980 shares changed hands during mid-day trading, an increase of 159% from the average daily volume of 4,013,373 shares. The stock last traded at $32.14 and had previously closed at $32.58.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the company. Weiss Ratings upgraded Dropbox from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, November 3rd. Bank of America reaffirmed an “underperform” rating on shares of Dropbox in a report on Friday, August 7th. Royal Bank Of Canada upped their price target on Dropbox from $42.00 to $48.00 and gave the company an “outperform” rating in a research report on Friday. UBS Group increased their price target on Dropbox from $23.00 to $26.00 and gave the company a “sell” rating in a research note on Friday. Finally, Citigroup downgraded Dropbox from a “neutral” rating to a “sell” rating and lowered their price objective for the stock from $33.00 to $29.00 in a research report on Thursday, September 24th. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, Dropbox has a consensus rating of “Reduce” and a consensus target price of $35.60.

Dropbox Trading Down 0.9%

The stock has a market cap of $7.29 billion, a price-to-earnings ratio of 17.47, a P/E/G ratio of 3.56 and a beta of 0.62. The stock’s 50-day moving average price is $35.23 and its 200-day moving average price is $29.28.

Dropbox (NASDAQ:DBX) last posted its quarterly earnings data on Thursday, November 5th. The company reported $0.88 earnings per share for the quarter, topping the consensus estimate of $0.73 by $0.15. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. The company had revenue of $637.30 million during the quarter, compared to analysts’ expectations of $629.59 million. During the same period in the prior year, the company posted $0.74 earnings per share. Dropbox’s revenue for the quarter was up .5% compared to the same quarter last year. As a group, analysts predict that Dropbox, Inc. will post 2.33 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO Ross Tennenbaum sold 97,558 shares of Dropbox stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $35.02, for a total value of $3,416,481.16. Following the completion of the transaction, the chief financial officer directly owned 690,666 shares of the company’s stock, valued at approximately $24,187,123.32. This trade represents a 12.38% decrease in their position. The transaction was disclosed in a legal filing with the SEC, 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 12,382 shares of Dropbox stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $34.78, for a total value of $430,645.96. Following the completion of the transaction, the insider directly owned 366,693 shares of the company’s stock, valued at approximately $12,753,582.54. This trade represents a 3.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,331,268 shares of company stock valued at $46,553,783 over the last quarter. Company insiders own 35.48% of the company’s stock.

Institutional Investors Weigh In On Dropbox

Several institutional investors and hedge funds have recently made changes to their positions in the business. Arrowstreet Capital Limited Partnership grew its stake in Dropbox by 12.7% during the first 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. Wedge Capital Management L L P NC increased its holdings in 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 purchasing an additional 627,111 shares in the last quarter. Russell Investments Group Ltd. increased its holdings in Dropbox by 4.7% in the third quarter. Russell Investments Group Ltd. now owns 2,237,858 shares of the company’s stock worth $75,519,000 after purchasing an additional 100,398 shares in the last quarter. Pacer Advisors Inc. lifted its stake in Dropbox by 2.8% in the first quarter. Pacer Advisors Inc. now owns 2,047,966 shares of the company’s stock valued at $46,530,000 after buying an additional 55,921 shares during the period. Finally, KBC Group NV lifted its stake in Dropbox by 12.6% in the first quarter. KBC Group NV now owns 944,829 shares of the company’s stock valued at $21,466,000 after buying an additional 105,876 shares during the period. Institutional investors own 94.84% of the company’s stock.

Dropbox Company Profile

Dropbox, Inc is a cloud software company that helps individuals and organizations store, access, sync and share files across devices. Its core Dropbox service also supports collaboration through shared folders, comments and tools for managing digital content.

The company offers products for a range of work and collaboration needs, including Dropbox Sign for electronic signatures and DocSend for sharing and tracking documents. Dropbox has also developed tools for reviewing creative content and organizing work, alongside integrations with other business applications.

Founded in 2007 by Drew Houston and Arash Ferdowsi, Dropbox serves customers around the world.