Dropbox Inc. (NASDAQ: DBX) stock jumped 1.05% on Friday to $23.99 against a previous-day closing price of $23.74. With 2.44 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.32 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $24.01 whereas the lowest price it dropped to was $23.48. The 52-week range on DBX shows that it touched its highest point at $33.00 and its lowest point at $19.07 during that stretch. It currently has a 1-year price target of $27.42. Beta for the stock currently stands at 0.85.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DBX was up-trending over the past week, with a rise of 3.99%, but this was up by 8.26% over a month. Three-month performance surged to 7.10% while six-month performance fell -4.08%. The stock lost -23.65% in the past year, while it has lost -2.24% so far this year. A look at the trailing 12-month EPS for DBX yields 1.15 with Next year EPS estimates of 1.79. For the next quarter, that number is 0.37. This implies an EPS growth rate of 266.00% for this year and 11.73% for next year. EPS is expected to grow by 16.80% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 31.40%.
Float and Shares Shorts:
At present, 288.00 million DBX shares are outstanding with a float of 279.18 million shares on hand for trading. On Jul 14, 2022, short shares totaled 16.17 million, which was 4.31% higher than short shares on Jun 14, 2022. In addition to Mr. Andrew W. Houston as the firm’s Co-Founder, CEO & Chairman, Mr. Timothy H. Young serves as its Pres.
Through their ownership of 80.54% of DBX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 6.48% of DBX, in contrast to 43.56% held by mutual funds. Shares owned by individuals account for 37.44%. As the largest shareholder in DBX with 10.45% of the stake, The Vanguard Group, Inc. holds 30,610,623 shares worth 30,610,623. A second-largest stockholder of DBX, Columbia Management Investment Ad, holds 14,947,154 shares, controlling over 5.10% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in DBX, holding 13,457,054 shares or 4.59% stake. With a 2.90% stake in DBX, the Columbia Seligman Technology & In is the largest stakeholder. A total of 8,481,809 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.80% of DBX stock, is the second-largest Mutual Fund holder. It holds 8,190,384 shares valued at 171.92 million. Pictet – Robotics holds 2.75% of the stake in DBX, owning 8,064,517 shares worth 169.27 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DBX since 10 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DBX analysts setting a high price target of $38.00 and a low target of $25.00, the average target price over the next 12 months is $29.98. Based on these targets, DBX could surge 58.4% to reach the target high and rise by 4.21% to reach the target low. Reaching the average price target will result in a growth of 24.97% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DBX will report FY 2022 earnings on 02/16/2023. Analysts have provided yearly estimates in a range of $1.65 being high and $1.50 being low. For DBX, this leads to a yearly average estimate of $1.56. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Dropbox Inc. surprised analysts by $0.01 when it reported $0.38 EPS against a consensus estimate of $0.37. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is $0.40 and the low estimate is $0.35. The average estimate for the next quarter is thus $0.37.
Summary of Insider Activity:
Insiders traded DBX stock several times over the past three months with 7 Buys and 14 Sells. In these transactions, 86,079 shares were bought while 336,316 shares were sold. The number of buy transactions has increased to 11 while that of sell transactions has risen to 60 over the past year. The total number of shares bought during that period was 506,364 while 2,141,717 shares were sold.