Stock Traders Purchase High Volume of Dropbox Call Options (NASDAQ:DBX)

Dropbox, Inc. (NASDAQ:DBX) was the recipient of unusually large options trading activity on Wednesday. Traders bought 4,395 call options on the stock. This is an increase of approximately 59% compared to the average volume of 2,760 call options.

Dropbox Price Performance

NASDAQ DBX opened at $25.90 on Friday. The business’s 50-day moving average is $24.06 and its 200 day moving average is $23.35. The stock has a market capitalization of $8.55 billion, a PE ratio of 17.15, a PEG ratio of 1.55 and a beta of 0.61. Dropbox has a 1 year low of $20.68 and a 1 year high of $33.43.

Dropbox (NASDAQ:DBX) last posted 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 net margin of 23.06% and a negative return on equity of 161.78%. The firm had revenue of $634.50 million during the quarter, compared to analysts’ expectations of $630.10 million. During the same period last year, the company posted $0.28 EPS. The company’s quarterly revenue was up 1.9% compared to the same quarter last year. As a group, equities research analysts anticipate that Dropbox will post 1.31 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Andrew Houston sold 351,306 shares of the firm’s stock in a transaction on Tuesday, October 1st. The stock was sold at an average price of $25.12, for a total transaction of $8,824,806.72. Following the completion of the sale, the chief executive officer now directly owns 8,266,666 shares of the company’s stock, valued at $207,658,649.92. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. In related news, insider Bart Volkmer sold 7,000 shares of the business’s stock in a transaction dated Monday, July 15th. The stock was sold at an average price of $22.76, for a total value of $159,320.00. Following the sale, the insider now directly owns 333,934 shares in the company, valued at approximately $7,600,337.84. The trade was a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Andrew Houston sold 351,306 shares of the stock in a transaction dated Tuesday, October 1st. The stock was sold at an average price of $25.12, for a total transaction of $8,824,806.72. Following the transaction, the chief executive officer now owns 8,266,666 shares of the company’s stock, valued at $207,658,649.92. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 464,952 shares of company stock valued at $11,642,212 in the last 90 days. 26.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Dropbox

Several large investors have recently made changes to their positions in DBX. Sound Income Strategies LLC purchased a new position in shares of Dropbox during the first quarter valued at approximately $28,000. GAMMA Investing LLC increased its holdings in Dropbox by 274.0% during the second quarter. GAMMA Investing LLC now owns 1,238 shares of the company’s stock valued at $28,000 after buying an additional 907 shares during the last quarter. Fifth Third Bancorp raised its position in Dropbox by 548.8% in the second quarter. Fifth Third Bancorp now owns 1,382 shares of the company’s stock worth $31,000 after acquiring an additional 1,169 shares during the period. UMB Bank n.a. boosted its stake in shares of Dropbox by 2,479.4% during the 3rd quarter. UMB Bank n.a. now owns 1,754 shares of the company’s stock worth $45,000 after acquiring an additional 1,686 shares during the last quarter. Finally, Quarry LP grew its position in shares of Dropbox by 81.1% during the 2nd quarter. Quarry LP now owns 1,965 shares of the company’s stock valued at $44,000 after acquiring an additional 880 shares during the period. 94.84% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

DBX has been the topic of several research analyst reports. Citigroup decreased their price target on shares of Dropbox from $26.00 to $25.00 and set a “neutral” rating on the stock in a report on Wednesday, June 26th. UBS Group decreased their target price on Dropbox from $30.00 to $28.00 and set a “buy” rating on the stock in a research note on Friday, August 9th. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and two have assigned a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $28.67.

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.