Dropbox (NASDAQ:DBX) Hits New 12-Month High - Here's Why

Key Points

• Dropbox shares reached a new 52-week high of $36.37, trading around $36.01 and up slightly from the prior close. The stock’s market capitalization is approximately $8.13 billion.
• Dropbox exceeded quarterly expectations, reporting $0.75 in earnings per share versus $0.74 forecast and revenue of $631.5 million versus $626.7 million expected; revenue grew 0.9% year over year.
• Analyst sentiment remains cautious, with the stock carrying a consensus “Reduce” rating and a $28.25 price target. Insiders sold 61,041 shares worth nearly $1.9 million over the past 90 days, while institutional investors own 94.84% of the company.

Dropbox, Inc. (NASDAQ:DBX - Get Free Report) hit a new 52-week high during mid-day trading on Friday . The stock traded as high as $36.37 and last traded at $36.01, with a volume of 604908 shares trading hands. The stock had previously closed at $35.88.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Zacks Research lowered shares of Dropbox from a "hold" rating to a "strong sell" rating in a report on Wednesday, August 19th. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Dropbox in a research report on Monday, June 1st. William Blair raised Dropbox from an "underperform" rating to a "market perform" rating in a report on Friday, August 7th. Bank of America reiterated an "underperform" rating on shares of Dropbox in a research report on Friday, August 7th. Finally, Wall Street Zen cut Dropbox from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. One equities research analyst has rated the stock with a Buy rating, four have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus target price of $28.25.

Dropbox Stock Up 0.4%

The firm has a market cap of $8.13 billion, a P/E ratio of 20.01, a PEG ratio of 5.15 and a beta of 0.64. The stock's 50-day simple moving average is $31.08 and its 200 day simple moving average is $27.33.

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, topping the consensus estimate of $0.74 by $0.01. The firm had revenue of $631.50 million during the quarter, compared to analyst estimates 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 last year, the company posted $0.71 EPS. On average, research analysts forecast that Dropbox, Inc. will post 1.93 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Eric T. Webster sold 15,830 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $34.09, for a total transaction of $539,644.70. Following the completion of the sale, the insider owned 416,236 shares of the company's stock, valued at $14,189,485.24. This trade represents a 3.66% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Karen Peacock sold 2,000 shares of Dropbox stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $33.00, for a total transaction of $66,000.00. Following the completion of the sale, the director owned 22,366 shares of the company's stock, valued at $738,078. This represents a 8.21% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 61,041 shares of company stock valued at $1,896,492 in the last 90 days. Company insiders own 35.48% of the company's stock.

Hedge Funds Weigh In On Dropbox

Institutional investors have recently made changes to their positions in the stock. Pacer Advisors Inc. increased its stake in Dropbox by 2.8% during the 1st quarter. Pacer Advisors Inc. now owns 2,047,966 shares of the company's stock valued at $46,530,000 after purchasing an additional 55,921 shares in the last quarter. Arbejdsmarkedets Tillaegspension purchased a new stake in shares of Dropbox during the 4th quarter worth approximately $22,050,000. Pictet Asset Management Holding SA lifted its holdings in Dropbox by 317.2% during the fourth quarter. Pictet Asset Management Holding SA now owns 125,144 shares of the company's stock valued at $3,479,000 after purchasing an additional 95,146 shares during the last quarter. ING Groep NV purchased a new stake in Dropbox during the 4th quarter worth about $1,223,000. Finally, Jupiter Asset Management Ltd. bought a new stake in Dropbox during the 4th quarter worth approximately $1,591,000. Institutional investors and hedge funds 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.

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