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Dropbox Trading at a Discount of 33% to Wall Street Estimates

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Stock return

Shares of Dropbox (DBX) rose just under 3% on Friday, April 26, to close trading at $24.35. The stock is currently trading 32% above its 52-week low of $18.5 and 44% below its 52-week high of $43.50.

The stock though has been volatile over the last 12 months. Dropbox shares rose from its IPO price of $21 in March 2018 to $43.50 in July 2018. Shares then fell to $18.5 in December 2018. It has, however, staged an impressive comeback gaining over 19% in 2019.

Dropbox was listed as a public company in March 2018 and has returned over 16% since its IPO.

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Analysts’ recommendations

Of the 12 analysts tracking Dropbox, seven have given it “buys,” four have given it “holds,” and one has given it a “sell.” Analysts’ 12-month average price target for Dropbox is $32.38, and their median estimate is $32.50. Dropbox stock is trading at a discount of 33.5% to analysts’ median estimate.

What do the technical indicators say?

On April 26, Dropbox closed the trading day at $24.35. Based on that price, the stock was trading as follows:

  • 9% above its 100-day moving average of $22.79
  • 6.5% above its 50-day moving average of $22.87
  • 6.9% above its 20-day moving average of $22.33

MACD and RSI

Dropbox’s 14-day MACD (moving average convergence divergence) is 1.30. A stock’s MACD marks the difference between its short-term and long-term moving averages. Dropbox’s positive MACD score indicates an upward trading trend.

Dropbox has a 14-day RSI (relative strength index) score of 67, which shows that its stock is trading very close to overbought territory. An RSI score of above 70 indicates that a stock is overbought while an RSI score of below 30 indicates that a stock is oversold.

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