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

Dropbox, Inc. (NASDAQ:DBX) was the target of some unusual options trading on Monday. Stock investors bought 31,285 call options on the stock. This represents an increase of 2,616% compared to the average volume of 1,152 call options.

Insiders Place Their Bets

In other news, CEO Andrew Houston sold 30,332 shares of the company’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $27.50, for a total transaction of $834,130.00. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ashraf Alkarmi sold 22,700 shares of the stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $27.86, for a total value of $632,422.00. Following the sale, the chief executive officer directly owned 1,080,746 shares in the company, valued at $30,109,583.56. This trade represents a 2.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 129,082 shares of company stock worth $3,489,910. 35.48% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Arbejdsmarkedets Tillaegspension purchased a new position in Dropbox during the fourth quarter valued at approximately $22,050,000. Nisa Investment Advisors LLC boosted its position in shares of Dropbox by 57.9% in the fourth quarter. Nisa Investment Advisors LLC now owns 223,706 shares of the company’s stock worth $6,219,000 after purchasing an additional 82,053 shares during the period. Robeco Institutional Asset Management B.V. increased its stake in shares of Dropbox by 22.5% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 2,518,534 shares of the company’s stock worth $70,015,000 after purchasing an additional 463,258 shares in the last quarter. Pictet Asset Management Holding SA increased its stake in shares of Dropbox by 317.2% in the fourth quarter. Pictet Asset Management Holding SA now owns 125,144 shares of the company’s stock worth $3,479,000 after purchasing an additional 95,146 shares in the last quarter. Finally, ING Groep NV bought a new stake in shares of Dropbox during the 4th quarter valued at $1,223,000. Institutional investors own 94.84% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on DBX. Wall Street Zen raised Dropbox from a “hold” rating to a “buy” rating in a research report on Sunday, June 28th. Citigroup raised their price target on shares of Dropbox from $27.00 to $28.00 and gave the company a “neutral” rating in a report on Monday, May 11th. Weiss Ratings reiterated a “hold (c)” rating on shares of Dropbox in a research note on Monday, May 4th. Finally, Royal Bank Of Canada reiterated an “outperform” rating on shares of Dropbox in a research note on Monday, June 1st. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus price target of $27.00.

Dropbox Trading Up 4.6%

DBX opened at $30.54 on Tuesday. The firm’s 50 day simple moving average is $27.90 and its two-hundred day simple moving average is $26.04. The company has a market capitalization of $7.12 billion, a PE ratio of 16.69, a PEG ratio of 3.20 and a beta of 0.66. Dropbox has a 1-year low of $21.69 and a 1-year high of $32.40.

Dropbox (NASDAQ:DBX) last announced its earnings results on Thursday, May 7th. The company reported $0.76 EPS for the quarter, topping analysts’ consensus estimates of $0.71 by $0.05. The company had revenue of $629.50 million for the quarter, compared to analysts’ expectations of $620.56 million. Dropbox had a negative return on equity of 30.01% and a net margin of 18.71%.Dropbox’s revenue for the quarter was up .8% compared to the same quarter last year. During the same period last year, the firm earned $0.70 EPS. Equities analysts forecast that Dropbox will post 2.09 earnings per share for the current fiscal year.

About Dropbox

Dropbox, Inc (NASDAQ: DBX) is a leading provider of cloud-based file storage, collaboration, and productivity tools. Founded in 2007 and headquartered in San Francisco, California, the company offers a suite of services designed to help individuals and organizations securely store, share, and manage digital content. Dropbox has grown from a simple file-syncing application into an integrated collaboration platform used by millions of customers around the globe.

At its core, Dropbox provides cloud storage plans tailored for consumers and businesses.