Shares of data-storage firm Dropbox are outpacing the market. Bob Mylod bought $2.5 million of the stock earlier this month.
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Dropbox stock has been on a tear, and director Bob Mylod bought a large amount of shares of the data-storage company.
Dropbox stock surged 26.1% in 2020, trouncing the 16.3% rise in the S&P 500 index. So far this year, shares are up 21%, while the index is up 4.2%. Dropbox has done well as the coronavirus pandemic keeps office workers at home, even if it hasn’t zoomed quite as much as Zoom Video Communications (ZM) stock.
Mylod paid $2.5 million on March 10 for 100,000 shares, an average price of $24.59 each. He made the purchases through a limited liability company that he controls. According to a form Mylod filed with the Securities and Exchange Commission, his LLC now owns 222,698 Dropbox shares, and he owns another 78,908 shares in a personal account.
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Dropbox didn’t make Mylod available for comment on his recent stock purchase. Mylod, a former chief financial officer of Priceline, joined Dropbox’s board in 2014, about four years before the company’s initial public offering.
Dropbox stock slid in January after the company said it was cutting 11% of the workforce, and that Chief Operating Officer Olivia Nottebohm was stepping down after only one year on the job. At the time, Canaccord analyst David Hynes Jr. wrote that Dropbox was “a good business and an undervalued stock,” which he rated at Buy. Earlier this month, Hynes noted that Dropbox’s $165 million deal to buy DocSend, which allows users to share documents, is a “logical tuck-in.”
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at [email protected] and follow @BarronsEdLin.
