JP Morgan has recently reduced Dropbox Inc (DBX) stock to Neutral rating, as announced on February 16, 2024, according to Finviz. Earlier, on February 16, 2024, JMP Securities had reduced the stock from a Mkt Outperform to Mkt Perform. Goldman also reduced Sell rating with a price target of $24. Additionally, BofA Securities reduced Underperform rating on February 16, 2024, with a target price of $28. UBS analysts, in their report published on December 15, 2023, also initiated Buy rating for Dropbox Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Dropbox Inc (DBX) Stock Trading Recap
On Tuesday, Dropbox Inc (DBX) stock saw a modest uptick, ending the day at $30.09 which represents a slight increase of $0.48 or 1.62% from the prior close of $29.61. The stock opened at $29.73 and touched a low of $29.62 during the day, reaching a high of $30.1. The volume of shares traded was 2.72 million falling short of the average volume of 2.87 million.
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DBX Stock Performance and Moving Averages
In recent trading, Dropbox Inc (DBX) stock price has shown some volatility, fluctuating 0.07% over the last five trades and 0.17% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 32.85%, and it has gained 16.18% in the previous three months. Currently, DBX is trading at 0.10%, 4.69%, and 20.96% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, DBX, a Technology sector stock, is trading -9.99% below its 52-week high but remains 45.50% above its 52-week low. The Average True Range (ATR) (14 days) of 0.66 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Dropbox Inc’s Profitability and Valuation Ratios
Dropbox Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of 20.01% and a profit margin of 22.71%, with a gross margin of 32.85%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Dropbox Inc’s market capitalization stands at $9.32 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 17.41, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 11.6. Additionally, the Price-to-Sales Ratio is 3.67, reflecting the market’s valuation of the company’s sales.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 29.20% of Dropbox Inc (DBX)’s shares, while financial institutions hold 72.24%.
Notable insider trades include Houston Andrew, Chief Executive Officer at Dropbox Inc (DBX), who sold 29917 shares on Jan 06 ’25, at $30.07 each, totaling $0.90 million. On Jan 02 ’25, Houston Andrew, Chief Executive Officer, sold 500323 shares for $29.65 each, amounting to $14.84 million. Additionally, on Jan 03 ’25, Houston Andrew sold 4257 shares at $30 each, generating $0.13 million.
