The stock of Dropbox, Inc. (NASDAQ:DBX) is now priced at $20.69 and the shares are -2.58 points down or -11.09% lower compared to its previous closing price of $23.27. DBX shares have a float of 257 million and although its performance was -9.05% over the week, it’s one to watch. Analysts have given the DBX stock a yearly average price target of $27.73 per share. It means the stock’s upside potential is 34.03% with the DBX share price recently placing at $20.52 to $22.2. However, some brokerage firms have priced the stock below the average, including one that has called $22.
The shorts are climbing into the Dropbox, Inc. stock, with the latest data on short interest released on July 15, 2020, showing that short interest numbers in the DBX shares have risen. Short interest in the stock represents just 7.51% of its float, but the volume has raised by 4469450. The volume of shorted shares rised to 19.304 million from 14.834 million shares over the last two weeks. The average intraday trading volume has been 6.238 million shares, which means that days to cover moved to roughly 3.094783.
In the last trading session, Dropbox, Inc. (NASDAQ:DBX) dropped by -$2.06 over the week and lost -$1.42 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $24.14. The stock recorded its established 52-week high on 06/23/20.
Since 03/12/20, the stock has traded to a low of $14.55 at 42.2%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge.
Looking at current readings, Dropbox, Inc.’s two-week RSI is 39.51. This suggests that the stock is neutral at the moment and that DBX shares’ price movement remains stable. The stochastic readings are equally revealing at 59.46% meaning the DBX share price is currently in neutral territory.
The technical chart shows that the DBX stock will likely settle at between $21.75 and $22.82 per share. However, if the stock dips below $20.07, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $19.46.
Currently, the stock is trading in the red of MACD, with a reading of -0.22. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at BofA Securities cut their recommendation for DBX from Buy to Neutral in July 31 review while maintai their target price of $32 to $25. Jefferies analysts upgraded their recommendation of the stock from Hold to Buy while keeping its target price at $22 to $28 in a flash note released to investors on July 20. Citigroup analysts see the stock as Buy when the analysts initiated the share price coverage on May 15, placing it at $27.
The average rating for the DBX equity is 2.23 and is currently gathering a bullish momentum. Of 13 analysts tracking Dropbox, Inc. polled by Reuters, 2 rated DBX as a hold. The remaining 11 analysts were split evenly. However, the split wasn’t equal as a majority (9) rated it as a buy or strong buy. 2 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the DBX stock price is 22.86X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 258.6 above the group’s average of 38. Dropbox, Inc. has its P/E ratio at 10.6, which means that the stock is currently trading at a discount relative to the 12.8 industry average.