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

Dropbox, Inc. (NASDAQ:DBX) saw a significant growth in short interest in the month of August. As of August 31st, there was short interest totalling 15,850,000 shares, a growth of 6.7% from the August 15th total of 14,850,000 shares. Based on an average daily trading volume, of 3,540,000 shares, the short-interest ratio is presently 4.5 days. Currently, 6.8% of the company’s stock are sold short.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on DBX. UBS Group decreased their target price on shares of Dropbox from $30.00 to $28.00 and set a “buy” rating for the company in a research note on Friday, August 9th. Citigroup cut their price target on shares of Dropbox from $26.00 to $25.00 and set a “neutral” rating for the company in a research note on Wednesday, June 26th. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and two have given a buy rating to the stock. According to MarketBeat.com, Dropbox currently has a consensus rating of “Hold” and a consensus target price of $28.67.

Insider Buying and Selling

In other news, insider Bart Volkmer sold 7,000 shares of the firm’s stock in a transaction that occurred on Monday, July 15th. The shares were sold at an average price of $22.76, for a total transaction of $159,320.00. Following the completion of the transaction, the insider now directly owns 333,934 shares of the company’s stock, valued at approximately $7,600,337.84. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. In related news, CFO Timothy Regan sold 13,000 shares of the company’s stock in a transaction dated Monday, July 1st. The stock was sold at an average price of $22.33, for a total transaction of $290,290.00. Following the sale, the chief financial officer now owns 538,122 shares in the company, valued at $12,016,264.26. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Bart Volkmer sold 7,000 shares of the firm’s stock in a transaction that occurred on Monday, July 15th. The shares were sold at an average price of $22.76, for a total value of $159,320.00. Following the completion of the transaction, the insider now owns 333,934 shares of the company’s stock, valued at $7,600,337.84. The disclosure for this sale can be found here. Over the last three months, insiders sold 105,000 shares of company stock worth $2,354,690. 26.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Dropbox

Several institutional investors and hedge funds have recently made changes to their positions in the company. Natixis Advisors L.P. acquired a new position in Dropbox in the 4th quarter valued at $354,000. Principal Securities Inc. bought a new position in Dropbox during the fourth quarter worth about $34,000. Dimensional Fund Advisors LP raised its stake in Dropbox by 1.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,518,959 shares of the company’s stock worth $44,782,000 after purchasing an additional 28,393 shares in the last quarter. Vanguard Personalized Indexing Management LLC boosted its holdings in Dropbox by 80.9% in the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 32,311 shares of the company’s stock valued at $953,000 after purchasing an additional 14,450 shares during the period. Finally, Norges Bank acquired a new position in shares of Dropbox during the 4th quarter worth approximately $19,361,000. Institutional investors and hedge funds own 94.84% of the company’s stock.

Dropbox Price Performance

Dropbox stock traded down $0.21 during mid-day trading on Tuesday, hitting $24.67. 539,776 shares of the company’s stock traded hands, compared to its average volume of 3,894,046. The firm has a 50 day simple moving average of $23.39 and a two-hundred day simple moving average of $23.21. Dropbox has a fifty-two week low of $20.68 and a fifty-two week high of $33.43. The stock has a market cap of $8.15 billion, a price-to-earnings ratio of 16.36, a P/E/G ratio of 1.51 and a beta of 0.61.

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