Dropbox (NASDAQ:DBX) Sees Unusually-High Trading Volume – Here’s Why

Dropbox, Inc. (NASDAQ:DBX) shares saw unusually-strong trading volume on Tuesday. 10,392,980 shares were traded during 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

DBX has been the subject of several analyst reports. Stephens began coverage on Dropbox in a report on Tuesday, November 3rd. They issued an “equal weight” rating and a $39.00 target price for the company. William Blair raised Dropbox from an “underperform” rating to a “market perform” rating in a research note on Friday, August 7th. UBS Group lifted their price target on Dropbox from $23.00 to $26.00 and gave the stock a “sell” rating in a report on Friday, November 6th. Weiss Ratings raised shares of Dropbox from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, November 3rd. Finally, Citigroup cut shares of Dropbox from a “neutral” rating to a “sell” rating and lowered their price target for the company from $33.00 to $29.00 in a research report on Thursday, September 24th. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus target price of $35.60.

Dropbox Stock Performance

The firm’s 50 day moving average price is $35.15 and its two-hundred day moving average price is $29.35. The firm has a market cap of $7.48 billion, a PE ratio of 17.92, a PEG ratio of 2.91 and a beta of 0.62.

Dropbox (NASDAQ:DBX) last released its quarterly earnings results on Thursday, November 5th. The company reported $0.88 EPS for the quarter, beating the consensus estimate of $0.73 by $0.15. Dropbox had a net margin of 17.17% and a negative return on equity of 22.35%. The firm had revenue of $637.30 million for the quarter, compared to analyst estimates of $629.59 million. During the same quarter in the previous year, the company earned $0.74 EPS. The business’s revenue for the quarter was up .5% compared to the same quarter last year. On average, analysts forecast that Dropbox, Inc. will post 1.94 earnings per share for the current year.

Insider Activity at Dropbox

In other Dropbox news, CEO Ashraf Alkarmi sold 28,800 shares of Dropbox stock in a transaction on Friday, September 11th. The stock was sold at an average price of $35.54, for a total value of $1,023,552.00. Following the sale, the chief executive officer owned 1,004,081 shares in the company, valued at $35,685,038.74. The trade was a 2.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Sarah Schubach sold 2,056 shares of Dropbox stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $35.79, for a total value of $73,584.24. Following the completion of the sale, the chief accounting officer owned 130,821 shares in the company, valued at $4,682,083.59. This represents a 1.55% decrease in their position. 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 1,331,268 shares of company stock valued at $46,553,783 over the last 90 days. Corporate insiders own 35.48% of the company’s stock.

Institutional Trading of Dropbox

A number of hedge funds and other institutional investors have recently modified their holdings of DBX. GAMMA Investing LLC lifted its position in Dropbox by 5.2% in the third quarter. GAMMA Investing LLC now owns 10,054 shares of the company’s stock valued at $340,000 after buying an additional 500 shares during the last quarter. Elevation Wealth Partners LLC boosted its stake in Dropbox by 63.0% during the third quarter. Elevation Wealth Partners LLC now owns 1,363 shares of the company’s stock worth $46,000 after buying an additional 527 shares during the period. Global Retirement Partners LLC boosted its stake in Dropbox by 13.0% during the third quarter. Global Retirement Partners LLC now owns 5,073 shares of the company’s stock worth $172,000 after buying an additional 582 shares during the period. Intech Investment Management LLC increased its position in shares of Dropbox by 3.0% during the third quarter. Intech Investment Management LLC now owns 24,041 shares of the company’s stock valued at $814,000 after acquiring an additional 710 shares during the last quarter. Finally, State of Michigan Retirement System increased its position in shares of Dropbox by 1.9% during the first quarter. State of Michigan Retirement System now owns 42,000 shares of the company’s stock valued at $954,000 after acquiring an additional 800 shares during the last quarter. 94.84% of the stock is owned by institutional investors and hedge funds.

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.