Dropbox, Inc. (NASDAQ:DBX) Sees Significant Increase in Short Interest

Dropbox, Inc. (NASDAQ:DBX) was the recipient of a large increase in short interest in the month of August. As of August 31st, there was short interest totalling 15,850,000 shares, an increase of 6.7% from the August 15th total of 14,850,000 shares. Approximately 6.8% of the shares of the stock are sold short. Based on an average trading volume of 3,540,000 shares, the days-to-cover ratio is presently 4.5 days.

Analyst Ratings Changes

Several equities analysts have commented on the company. Citigroup dropped their target price on 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 target price on Dropbox from $30.00 to $28.00 and set a “buy” rating for the company in a research report on Friday, August 9th. Two research analysts have rated the stock with a sell rating, four have given a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat, Dropbox has an average rating of “Hold” and an average price target of $28.67.

Dropbox Trading Down 0.6 %

NASDAQ DBX traded down $0.14 during trading hours on Wednesday, hitting $24.49. 2,224,647 shares of the company’s stock were exchanged, compared to its average volume of 3,894,649. The stock has a 50-day simple moving average of $23.50 and a 200 day simple moving average of $23.22. Dropbox has a 1-year low of $20.68 and a 1-year high of $33.43. The firm has a market cap of $8.09 billion, a price-to-earnings ratio of 16.22, a PEG ratio of 1.51 and a beta of 0.61.

Dropbox (NASDAQ:DBX) last released its earnings results on Thursday, August 8th. The company reported $0.60 EPS for the quarter, topping the consensus estimate of $0.52 by $0.08. Dropbox had a negative return on equity of 161.78% and a net margin of 23.06%. The business had revenue of $634.50 million during the quarter, compared to analysts’ expectations of $630.10 million. During the same quarter last year, the firm posted $0.28 earnings per share. The firm’s revenue was up 1.9% on a year-over-year basis. On average, sell-side analysts anticipate that Dropbox will post 1.31 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Timothy Regan sold 2,500 shares of the company’s stock in a transaction on Friday, September 13th. The stock was sold at an average price of $24.35, for a total transaction of $60,875.00. Following the completion of the sale, the chief financial officer now directly owns 485,724 shares in the company, valued at approximately $11,827,379.40. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. In related news, CEO Andrew Houston sold 82,000 shares of the company’s stock in a transaction on Monday, July 1st. The stock was sold at an average price of $22.40, for a total transaction of $1,836,800.00. Following the completion of the sale, the chief executive officer now directly owns 8,266,666 shares in the company, valued at approximately $185,173,318.40. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CFO Timothy Regan sold 2,500 shares of the stock in a transaction dated Friday, September 13th. The shares were sold at an average price of $24.35, for a total value of $60,875.00. Following the completion of the transaction, the chief financial officer now owns 485,724 shares of the company’s stock, valued at $11,827,379.40. The disclosure for this sale can be found here. In the last three months, insiders sold 107,900 shares of company stock worth $2,425,565. 26.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Dropbox

A number of hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew 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 period. Renaissance Technologies LLC lifted its holdings in shares of 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 purchasing an additional 506,200 shares in the last quarter. Pacer Advisors Inc. lifted its holdings in shares of 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 purchasing an additional 2,881,981 shares in the last quarter. Jacobs Levy Equity Management Inc. lifted its holdings in shares of 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 purchasing an additional 32,600 shares in the last quarter. Finally, LSV Asset Management lifted its holdings in shares of 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 purchasing an additional 314,862 shares in the last quarter. Institutional investors and hedge funds own 94.84% of the company’s stock.

About Dropbox

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.