Dropbox (NASDAQ:DBX) Sets New 12-Month High - What's Next?

Key Points

• Dropbox shares reached a new 52-week high of $38.17, trading well above their 50-day and 200-day moving averages of $34.97 and $30.34, respectively.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating, with one Buy, four Hold, and three Sell ratings, and a consensus price target of $29.75.
• Dropbox exceeded quarterly expectations, reporting $0.75 in adjusted earnings per share and $631.5 million in revenue, while insiders sold approximately 951,100 shares worth $32.9 million over the past three months.

Shares of Dropbox, Inc. (NASDAQ:DBX - Get Free Report) reached a new 52-week high during trading on Monday. The stock traded as high as $38.17 and last traded at $38.1090, with a volume of 173,389 shares traded. The stock had previously closed at $37.83.

Wall Street Analyst Weigh In

DBX has been the topic of a number of analyst reports. Weiss Ratings upgraded Dropbox from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, August 13th. William Blair upgraded Dropbox from an "underperform" rating to a "market perform" rating in a research report on Friday, August 7th. Wall Street Zen downgraded Dropbox from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Bank of America restated an "underperform" rating on shares of Dropbox in a research report on Friday, August 7th. Finally, Zacks Research raised shares of Dropbox from a "strong sell" rating to a "hold" rating in a research note on Tuesday, October 6th. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Reduce" and a consensus price target of $29.75.

Dropbox Stock Performance

The firm's 50-day moving average is $34.97 and its 200 day moving average is $30.34. The firm has a market capitalization of $8.51 billion, a PE ratio of 20.96, a price-to-earnings-growth ratio of 5.57 and a beta of 0.63.

Dropbox (NASDAQ:DBX - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $0.75 earnings per share for the quarter, beating the consensus estimate of $0.74 by $0.01. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. The firm had revenue of $631.50 million during the quarter, compared to the consensus estimate of $626.69 million. During the same period last year, the firm posted $0.71 EPS. The firm's revenue for the quarter was up .9% on a year-over-year basis. As a group, equities analysts anticipate that Dropbox, Inc. will post 1.94 earnings per share for the current year.

Insiders Place Their Bets

In other Dropbox news, CEO Andrew Houston sold 29,500 shares of the company's stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $35.09, for a total value of $1,035,155.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider William T. Yoon sold 12,382 shares of the firm's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $34.78, for a total transaction of $430,645.96. Following the sale, the insider directly owned 366,693 shares in the company, valued at $12,753,582.54. This represents a 3.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 951,100 shares of company stock valued at $32,927,493. Insiders own 35.48% of the company's stock.

Hedge Funds Weigh In On Dropbox

Institutional investors have recently modified their holdings of the company. Lakewood Asset Management LLC grew its stake in Dropbox by 7.5% in the 3rd quarter. Lakewood Asset Management LLC now owns 36,933 shares of the company's stock worth $1,250,000 after acquiring an additional 2,580 shares during the period. Signaturefd LLC increased its stake in Dropbox by 103.4% in the third quarter. Signaturefd LLC now owns 5,616 shares of the company's stock valued at $190,000 after purchasing an additional 2,855 shares during the last quarter. Sowell Financial Services LLC increased its stake in Dropbox by 24.2% in the third quarter. Sowell Financial Services LLC now owns 9,719 shares of the company's stock valued at $329,000 after purchasing an additional 1,891 shares during the last quarter. Evergreen Capital Management LLC increased its stake in Dropbox by 3.2% in the third quarter. Evergreen Capital Management LLC now owns 26,941 shares of the company's stock valued at $912,000 after purchasing an additional 841 shares during the last quarter. Finally, Nisa Investment Advisors LLC lifted its position in Dropbox by 1.7% during the third quarter. Nisa Investment Advisors LLC now owns 112,094 shares of the company's stock worth $3,794,000 after buying an additional 1,829 shares during the period. Institutional investors and hedge funds own 94.84% of the company's stock.

Dropbox Company Profile

Dropbox, Inc NASDAQ: DBX is a software company that provides cloud-based tools for storing, organizing, sharing and collaborating on files. Its platform enables individuals, businesses and teams to access documents, photos and other content across connected devices, synchronize files and manage shared workflows.

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

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