Dropbox, Inc. (NASDAQ:DBX) Sees Large Decline in Short Interest

Dropbox, Inc. (NASDAQ:DBX - Get Free Report) was the target of a significant drop in short interest during the month of April. As of April 15th, there was short interest totalling 19,210,000 shares, a drop of 9.2% from the March 31st total of 21,150,000 shares. Based on an average trading volume of 4,100,000 shares, the short-interest ratio is currently 4.7 days. Approximately 7.6% of the company's shares are sold short.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on DBX. JPMorgan Chase & Co. cut shares of Dropbox from an "overweight" rating to a "neutral" rating and reduced their price target for the company from $33.00 to $30.00 in a research report on Friday, February 16th. KeyCorp lifted their price objective on shares of Dropbox from $32.00 to $37.00 and gave the company an "overweight" rating in a research note on Friday, January 19th. Citigroup dropped their price objective on shares of Dropbox from $31.00 to $27.00 and set a "neutral" rating on the stock in a research note on Friday, March 22nd. Bank of America lowered shares of Dropbox from a "buy" rating to an "underperform" rating and dropped their price objective for the company from $34.00 to $28.00 in a research note on Friday, February 16th. Finally, The Goldman Sachs Group lowered shares of Dropbox from a "neutral" rating to a "sell" rating and dropped their price objective for the company from $26.00 to $24.00 in a research note on Friday, February 16th. Three research analysts have rated the stock with a sell rating, four have issued a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $29.78.

Insider Buying and Selling

In related news, CFO Timothy Regan sold 3,000 shares of the firm's stock in a transaction that occurred on Monday, April 15th. The shares were sold at an average price of $23.11, for a total value of $69,330.00. Following the sale, the chief financial officer now directly owns 594,995 shares of the company's stock, valued at $13,750,334.45. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In other Dropbox news, CEO Andrew Houston sold 164,000 shares of Dropbox stock in a transaction that occurred on Tuesday, March 5th. The shares were sold at an average price of $23.86, for a total transaction of $3,913,040.00. Following the transaction, the chief executive officer now directly owns 8,266,666 shares of the company's stock, valued at $197,242,650.76. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO Timothy Regan sold 3,000 shares of Dropbox stock in a transaction that occurred on Monday, April 15th. The shares were sold at an average price of $23.11, for a total transaction of $69,330.00. Following the transaction, the chief financial officer now directly owns 594,995 shares in the company, valued at $13,750,334.45. The disclosure for this sale can be found here. Over the last three months, insiders have sold 189,721 shares of company stock valued at $4,548,575. Insiders own 26.40% of the company's stock.

Institutional Trading of Dropbox

Several institutional investors have recently added to or reduced their stakes in DBX. SG Americas Securities LLC increased its stake in Dropbox by 282.6% during the third quarter. SG Americas Securities LLC now owns 59,831 shares of the company's stock valued at $1,629,000 after purchasing an additional 44,193 shares during the last quarter. Commonwealth Equity Services LLC increased its stake in Dropbox by 30.6% during the third quarter. Commonwealth Equity Services LLC now owns 23,371 shares of the company's stock valued at $636,000 after purchasing an additional 5,480 shares during the last quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund boosted its holdings in shares of Dropbox by 37.5% during the third quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 139,320 shares of the company's stock valued at $3,794,000 after acquiring an additional 38,000 shares during the period. Kingswood Wealth Advisors LLC acquired a new position in shares of Dropbox during the third quarter valued at $62,000. Finally, Raymond James & Associates boosted its holdings in shares of Dropbox by 10.8% during the third quarter. Raymond James & Associates now owns 184,891 shares of the company's stock valued at $5,035,000 after acquiring an additional 18,087 shares during the period. Institutional investors own 94.84% of the company's stock.

Dropbox Price Performance

Shares of NASDAQ:DBX traded up $0.05 during midday trading on Monday, reaching $24.20. The company had a trading volume of 3,345,534 shares, compared to its average volume of 3,867,601. The stock's fifty day moving average price is $23.81 and its 200-day moving average price is $27.29. The stock has a market capitalization of $8.32 billion, a P/E ratio of 18.35, a PEG ratio of 2.71 and a beta of 0.71. Dropbox has a one year low of $19.55 and a one year high of $33.43.

Dropbox (NASDAQ:DBX - Get Free Report) last released its earnings results on Thursday, February 15th. The company reported $0.25 earnings per share for the quarter, missing the consensus estimate of $0.26 by ($0.01). Dropbox had a net margin of 18.13% and a negative return on equity of 120.82%. The business had revenue of $635.00 million for the quarter, compared to the consensus estimate of $630.77 million. As a group, sell-side analysts forecast that Dropbox will post 1.14 earnings per share for the current year.

About Dropbox

Dropbox, Inc provides a content collaboration platform worldwide. The company's platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. It serves customers in professional services, technology, media, education, industrial, consumer and retail, and financial services industries.

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