Dropbox Target of Unusually High Options Trading (NASDAQ:DBX)

Dropbox, Inc. (NASDAQ:DBX) was the target of some unusual options trading activity on Wednesday. Investors bought 4,395 call options on the company. This is an increase of approximately 59% compared to the typical volume of 2,760 call options.

Wall Street Analysts Forecast Growth

DBX has been the subject of several recent research reports. Citigroup dropped their price target on shares of Dropbox from $26.00 to $25.00 and set a “neutral” rating for the company in a research report on Wednesday, June 26th. UBS Group dropped their price objective on shares of Dropbox from $30.00 to $28.00 and set a “buy” rating for the company in a report on Friday, August 9th. Two research analysts have rated the stock with a sell rating, three have issued a hold rating and two have assigned a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $28.67.

Insider Activity

In other news, CEO Andrew Houston sold 3,493 shares of the company’s stock in a transaction dated Thursday, September 19th. The shares were sold at an average price of $25.00, for a total transaction of $87,325.00. Following the completion of the transaction, the chief executive officer now owns 8,266,666 shares of the company’s stock, valued at approximately $206,666,650. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In related news, CEO Andrew Houston sold 3,493 shares of the stock in a transaction dated Thursday, September 19th. The shares were sold at an average price of $25.00, for a total value of $87,325.00. Following the completion of the transaction, the chief executive officer now owns 8,266,666 shares of the company’s stock, valued at $206,666,650. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Timothy Regan sold 3,177 shares of the stock in a transaction dated Thursday, September 19th. The stock was sold at an average price of $25.00, for a total transaction of $79,425.00. Following the completion of the transaction, the chief financial officer now directly owns 481,747 shares of the company’s stock, valued at $12,043,675. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 464,952 shares of company stock valued at $11,642,212. Insiders own 26.40% of the company’s stock.

Institutional Trading of Dropbox

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its stake in Dropbox by 0.4% in the first quarter. Vanguard Group Inc. now owns 27,379,532 shares of the company’s stock valued at $665,323,000 after acquiring an additional 105,250 shares during the last quarter. Renaissance Technologies LLC boosted its stake in Dropbox by 5.2% in the second quarter. Renaissance Technologies LLC now owns 10,314,233 shares of the company’s stock valued at $231,761,000 after acquiring an additional 506,200 shares during the last quarter. Pacer Advisors Inc. boosted its stake in Dropbox by 63.0% in the second quarter. Pacer Advisors Inc. now owns 7,455,407 shares of the company’s stock valued at $167,523,000 after acquiring an additional 2,881,981 shares during the last quarter. Jacobs Levy Equity Management Inc. boosted its stake in Dropbox by 0.7% in the first quarter. Jacobs Levy Equity Management Inc. now owns 4,670,151 shares of the company’s stock valued at $113,485,000 after acquiring an additional 32,600 shares during the last quarter. Finally, LSV Asset Management boosted its stake in Dropbox by 9.2% in the second quarter. LSV Asset Management now owns 3,742,292 shares of the company’s stock valued at $84,089,000 after acquiring an additional 314,862 shares during the last quarter. 94.84% of the stock is owned by institutional investors.

Dropbox Price Performance

DBX opened at $25.81 on Thursday. Dropbox has a one year low of $20.68 and a one year high of $33.43. The company’s 50 day simple moving average is $24.01 and its 200-day simple moving average is $23.33. The stock has a market capitalization of $8.52 billion, a P/E ratio of 17.09, a price-to-earnings-growth ratio of 1.55 and a beta of 0.61.

Dropbox (NASDAQ:DBX) last released its quarterly earnings results on Thursday, August 8th. The company reported $0.60 EPS for the quarter, beating the consensus estimate of $0.52 by $0.08. Dropbox had a net margin of 23.06% and a negative return on equity of 161.78%. The business had revenue of $634.50 million for the quarter, compared to analysts’ expectations of $630.10 million. During the same period in the prior year, the firm earned $0.28 earnings per share. Dropbox’s revenue was up 1.9% compared to the same quarter last year. As a group, analysts anticipate that Dropbox will post 1.31 EPS for the current year.

Dropbox Company Profile

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.