|Over a week ago|
Dropbox price target raised to $22 from $19 at Goldman Sachs » 07:1606/2406/24/20
Goldman Sachs analyst…
Goldman Sachs analyst Heather Bellini raised the firm's price target on Dropbox to $22 from $19 and keeps a Sell rating on the shares. The analyst increased price targets across her Software and Select Internet coverage universe to reflect higher peer multiples, lower interest rates, and reduced equity risk premiums. Following a 30% contraction in the average enterprise value to sales multiples from the February peak, valuations across software have expanded 75% from mid-March troughs, surpassing July 2019 highs, Bellini tells investors in a research note.
Dropbox call volume above normal and directionally bullish » 11:0506/2306/23/20
Bullish option flow…
Bullish option flow detected in Dropbox with 13,483 calls trading, 4x expected, and implied vol increasing almost 2 points to 46.64%. 6/26 weekly 25 calls and 6/26 weekly 24.5 calls are the most active options, with total volume in those strikes near 7,400 contracts. The Put/Call Ratio is 0.06. Earnings are expected on August 6th.
Dropbox launches password manager and a secure vault for documents, Verge says » 17:0906/1606/16/20
Dropbox launched password manager on Tuesday, and"a vault' within your files intended for storing documents like birth certificates; and a new way to backup your computer to your Dropbox account," reports The Verge. "The password manager, called Dropbox Passwords, lets you store your passwords in one place like you would with a dedicated password manager like 1Password or LastPass but using your Dropbox account credentials. The release of Dropbox Passwords follows Dropbox's acquisition of password manager Valt last year," added The Verge story. Reference Link
|Over a month ago|
Fly Intel: What to watch in Zoom Video earnings report » 10:3306/0106/01/20
WORK, ZM, DBX, RNG, DOCU
Zoom Video (ZM) is…
Dropbox put volume heavy and directionally bearish » 11:3505/2605/26/20
Bearish flow noted in…
Bearish flow noted in Dropbox with 16,808 puts trading, or 11x expected. Most active are 6/5 weekly 23 puts and Jul-20 23 calls, with total volume in those strikes near 15,300 contracts. The Put/Call Ratio is 2.46, while ATM IV is up over 2 points on the day. Earnings are expected on August 6th.
Fly Intel: Top five weekend stock stories » 19:5805/2505/25/20
HTZ, REGN, SNY, AMZN, WMT, NVAX, WGO, POOL, YETI, DBX
Catch up on the…
Catch up on the weekend's top five stories with this list compiled by The Fly: 1. Hertz Global (HTZ) has announced that it and certain of its U.S. and Canadian subsidiaries have filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. "The impact of COVID-19 on travel demand was sudden and dramatic, causing an abrupt decline in the Company's revenue and future bookings. Hertz took immediate actions to prioritize the health and safety of employees and customers, eliminate all non-essential spending and preserve liquidity. However, uncertainty remains as to when revenue will return and when the used-car market will fully re-open for sales, which necessitated today's action. The financial reorganization will provide Hertz a path toward a more robust financial structure that best positions the Company for the future as it navigates what could be a prolonged travel and overall global economic recovery," the company said in a statement. Hertz's principal international operating regions including Europe, Australia and New Zealand are not included in the U.S. Chapter 11 proceedings. In addition, Hertz's franchised locations, which are not owned by the company, also are not included in the Chapter 11 proceedings. 2. Regeneron Pharmaceuticals (REGN) announced the commencement of an underwritten public secondary offering of its common stock through which Sanofi (SNY) intends to exit its investment in Regeneron shares. The shares being offered by Sanofi will be sold in an underwritten public offering. Sanofi currently owns approximately 23.2M Regeneron shares and intends to sell approximately 12.8M shares in the public offering. Sanofi also expects to grant the underwriters a 30-day option to purchase an additional 10% of the shares offered in the base offering. The registered offering and share repurchase will have no impact on the ongoing collaboration between Regeneron and Sanofi. Regeneron also announced that subject to and immediately following the close of the secondary offering, Regeneron agreed to repurchase approximately $5B of common stock directly from Sanofi. The purchase price to be paid by Regeneron will be equal to the net offering price per share after deducting any underwriters' discount and commission. Following the offering and Regeneron's $5B share repurchase, and assuming that the underwriters exercise their option to purchase additional shares in full, Sanofi will have disposed of all of its shares, other than 400,000 shares it intends to retain. 3. The impact of COVID-19 hasn't been evenly felt among the nation's retailers, with the biggest and strongest not just surviving, but thriving, while many smaller store chains and mom-and-pop shops face disaster, Teresa Rivas wrote in this week's edition of Barron's. In the past five years, the rise of e-commerce has changed the retail industry, tilting the landscape in favor of behemoths such as Amazon (AMZN) and Walmart (WMT) that can afford slick websites and fast, free delivery service, the author noted. Now, without a vaccine or effective treatment for coronavirus available near-term, these well-capitalized companies are likely to keep gobbling up market share at the expense of smaller operators, Rivas contended. 4. Novavax (NVAX) announced enrollment of the first participants in a Phase 1/2 clinical trial of its coronavirus vaccine candidate, NVX-CoV2373, a stable, prefusion protein made using its proprietary nanoparticle technology. NVX-CoV2373 includes Novavax' proprietary Matrix-M adjuvant to enhance immune responses and stimulate high levels of neutralizing antibodies. Preliminary immunogenicity and safety results from the Phase 1 portion of the trial are expected in July 2020. The Phase 1/2 clinical trial is being conducted in two parts. The Phase 1 portion is a randomized, observer-blinded, placebo-controlled trial designed to evaluate the immunogenicity and safety of NVX-CoV2373, both adjuvanted with Matrix-M and unadjuvanted. The trial is enrolling approximately 130 healthy participants 18 to 59 years of age at two sites in Australia. The protocol's two-dose trial regimen assesses two dose sizes with Matrix-M and without. The Phase 2 portion is expected to be conducted in multiple countries, including the United States, and would assess immunity, safety and COVID-19 disease reduction in a broader age range. This Phase 1/2 approach allows for rapid advancement of NVX-CoV2373 during the pandemic. The trial is being supported by the recently announced funding arrangement with the Coalition for Epidemic Preparedness Innovations. 5. Winnebago Industries (WGO), Pool Cor. (POOL), Yeti (YETI) and DropBox (DBX) saw positive mentions in this week's edition of Barron's.
Not every cloud stock has soared, DropBox worth a look, Barron's says » 12:2205/2305/23/20
DropBox (DBX), an early…
DropBox (DBX), an early cloud player, remains well below all-time highs, even as the rest of the work -from-home universe has soared, Daren Fonda writes in this week's edition of Barron's. Dropbox stores photos, videos, and documents for some 600M users, and while storage is generally a background service and rarely top of mind, the company is now pushing its way into the foreground, the author notes. The goal is to be a neutral player where anyone can converse, exchange content, and collaborate, regardless of corporate origin or allegiance, Fonda adds. Reference Link
Elliott added Dropbox and Oracle during Q1, exited NortonLifeLock » 11:5505/1705/17/20
DBX, ORCL, CTXS, QEP, EGHT, CSOD, NEWR, BA, SPR, SAP, NLOK, VNO
Paul Singer's Elliott Management disclosed in an SEC filing Friday its holdings as of March 31, 2020. The firm added new positions in Dropbox (DBX), Oracle (ORCL), 8X8 Inc. (EGHT), Cornerstone OnDemand (CSOD), New Relic (NEWR) and Spirit Aerosystems (SPR) during the first three months of 2020. Elliott during the quarter also sold its positions in SAP (SAP), NortonLifeLock (NLOK) and Vornado Realty Trust (VNO).
Gordon Haskett points to possible signs of activism at Dropbox, McKesson » 10:0005/1505/15/20
Gordon Haskett's Don…
Gordon Haskett's Don Bilson, who heads the firm's event-driven research, noted earlier that Nomura Securities' latest 13-D filing showed that it owned almost 7M Dropbox (DBX) shares at the end of March. "The reason this is interesting is Nomura is where activists often go for swaps," said Bilson, who added that it looks to him "like somebody has picked themselves up a decent amount of DBX exposure through a swap." Credit Suisse "is a desk that has also been known to put 'activists' into swaps," according to Bilson, who pointed out that McKesson (MCK) is on the list of the firm's positions that saw the greatest change in market value from December through the end of March. Not only is McKesson on the list "but its sitting in the pole position," added Bilson, who also said that "if one of the usual suspects is at MCK, it seems more likely that they are there as an opportunist or a suggestivist."
Dropbox initiated with a Buy at Citi » 06:2105/1505/15/20
Citi analyst Walter…
Citi analyst Walter Pritchard initiated coverage of Dropbox with a Buy rating and $27 price target. The analyst wants exposure to franchises that can have significant share or have "high value" users while putting into the framework of worldwide information worker segmentation and likely market consolidation.