Dropbox stock received two price-target hikes this morning
The shares of file storage and sharing company Dropbox Inc (NASDAQ:DBX) are down 6.5% to trade at $21.75 this morning, despite the company's second-quarter earnings and revenue topping Wall Street forecasts. Perhaps weighing on the stock instead is a C-suite shakeup, where the company's CFO Ajay Vashee announced his resignation.
Nevertheless, two bull notes were dished out by J.P. Morgan Securities and Citigroup, with the latter hiking their price target to $32 from $27. Coming into today, analysts were pretty optimistic on DBX. Of the eight brokerages in coverage, five sported a "strong buy." Plus, the 12-month consensus target price of $27.7 is a 19% premium to last night's close.
Despite today's lackluster price action, Dropbox stock still boasts an impressive 20% year-to-date lead. Plus, support has emerged at its 100-day moving average, a trendline that DBX has managed to capture pullbacks in the last four months.
Today's option pits have sprung to life. In the first hour of trading, over 26,000 options have crossed the tape so far -- nine times the intraday average, with volume pacing in the highest percentile of annual readings. The most popular is the October 22 call, followed by the September 20 put, with new positions being opened a the latter.