Dropbox (NASDAQ:DBX) Hits New 1-Year High - Time to Buy?

Key Points

• Dropbox shares reached a new 52-week high, trading as high as $36.86 and last changing hands near $36.47, above the prior close of $35.56.
• Despite a quarterly earnings beat—$0.75 EPS versus $0.74 expected and revenue of $631.5 million—analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $30.75.
• Insiders have sold 54,341 shares worth approximately $1.84 million over the past 90 days, while institutional investors hold a substantial 94.84% of the company’s outstanding stock.

Dropbox, Inc. (NASDAQ:DBX - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $36.86 and last traded at $36.4720, with a volume of 332978 shares traded. The stock had previously closed at $35.56.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. Citigroup upped their price target on shares of Dropbox from $28.00 to $33.00 and gave the company a "neutral" rating in a research report on Friday, August 7th. Zacks Research downgraded shares of Dropbox from a "hold" rating to a "strong sell" rating in a report on Wednesday, August 19th. Weiss Ratings upgraded shares of Dropbox from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, August 13th. Bank of America reaffirmed an "underperform" rating on shares of Dropbox in a report on Friday, August 7th. Finally, William Blair upgraded shares of Dropbox from an "underperform" rating to a "market perform" rating in a research report on Friday, August 7th. One research analyst has rated the stock with a Buy rating, four have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Dropbox currently has a consensus rating of "Reduce" and an average target price of $30.75.

Dropbox Price Performance

The business has a 50-day simple moving average of $32.83 and a 200 day simple moving average of $28.12. The firm has a market cap of $8.23 billion, a PE ratio of 20.30, a PEG ratio of 5.24 and a beta of 0.65.

Dropbox (NASDAQ:DBX - Get Free Report) last posted its quarterly earnings data 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 firm had revenue of $631.50 million for 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 quarterly revenue was up .9% on a year-over-year basis. During the same period in the previous year, the firm earned $0.71 EPS. On average, equities analysts forecast that Dropbox, Inc. will post 1.94 earnings per share for the current fiscal year.

Insider Activity at Dropbox

In other news, CTO Ali Dasdan sold 11,332 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $34.13, for a total value of $386,761.16. Following the completion of the sale, the chief technology officer directly owned 471,052 shares of the company's stock, valued at $16,077,004.76. This represents a 2.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 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, insider William T. Yoon sold 12,382 shares of the stock in a transaction on Friday, September 4th. The stock was sold at an average price of $34.78, for a total transaction of $430,645.96. Following the completion of the sale, 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. 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 have sold 54,341 shares of company stock worth $1,841,307 in the last 90 days. Insiders own 35.48% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of DBX. Pacer Advisors Inc. boosted its stake in shares of Dropbox by 2.8% in the first quarter. Pacer Advisors Inc. now owns 2,047,966 shares of the company's stock worth $46,530,000 after acquiring an additional 55,921 shares during the period. ING Groep NV bought a new stake in Dropbox during the 4th quarter valued at approximately $1,223,000. Jupiter Asset Management Ltd. purchased a new position in Dropbox in the 4th quarter worth approximately $1,591,000. Wedge Capital Management L L P NC lifted its holdings 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. Finally, OP Asset Management Ltd bought a new position in Dropbox in the 1st quarter worth approximately $3,196,000. Institutional investors own 94.84% of the company's stock.

Dropbox Company Profile

Dropbox, Inc NASDAQ: DBX is a technology company that provides cloud-based file storage, synchronization, sharing and collaboration services. Its platform enables individuals, businesses and organizations to store files online, access them across connected devices, and collaborate on documents and other digital content.

The company's offerings include Dropbox for file management and collaboration, Dropbox Paper for shared document and project work, Dropbox Sign for electronic signatures, and DocSend for securely sharing and tracking business documents.

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