DBX has shed more than 26% over the last nine months
Dropbox Inc (NASDAQ:DBX) is down 0.9% to trade at $22.56 at last check. The cloud software name has shed 26.7% over the past nine months, recently losing steam at the $24.50 level, as it attempted another bounce off a Feb. 24, annual low of $19.90. If this price action holds, the security will extend its losing streak for a third consecutive day.
Analysts are optimistic towards DBX, with five of the seven in coverage calling it a "buy" or better, while the 12-month consensus target price of $33 level is a 46.4% premium to the equity's current perch. Meanwhile, short interest fell 13% in the most recent reporting period, but still makes up 5.2% of the stock's available float.
The options pits lean pessimistic towards Dropbox stock. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), DBX's 10-day put/call volume ratio of 1.33 stands higher all readings from the past 12 months. This means puts have been getting picked up at much faster-than-usual clip.
The cloud software company has grown its revenues 13%, and increased net income by $592 million since 2020, marking a shift into profitability with $335.8 million generated on the bottom line for 2021. Dropbox is also estimated to grow earnings 15%, and revenues 7.8% over the next year.
From a fundamental point of view, Dropbox stock offers a mixed valuation. DBX trades at a decent forward price-earnings ratio of 16.42, and a relatively high price-sales ratio of 4.43.
Overall, Dropbox stock inspires very little as a growth play, but offers enough for value investors to consider adding DBX to their portfolios, in hopes that the software concern will return to its previous highs.