Dropbox (NASDAQ:DBX) CEO Sells $1,023,552.00 in Stock

Dropbox, Inc. (NASDAQ:DBX) CEO Ashraf Alkarmi sold 28,800 shares of the stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $35.54, for a total transaction of $1,023,552.00. Following the transaction, the chief executive officer owned 1,004,081 shares in the company, valued at approximately $35,685,038.74. The trade was a 2.79% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Dropbox Stock Performance

Shares of NASDAQ DBX traded up $0.32 during midday trading on Tuesday, reaching $37.63. The company’s stock had a trading volume of 4,287,887 shares, compared to its average volume of 3,960,374. Dropbox, Inc. has a fifty-two week low of $21.69 and a fifty-two week high of $38.17. The business’s 50 day moving average price is $33.00 and its two-hundred day moving average price is $28.21. The company has a market cap of $8.49 billion, a P/E ratio of 20.91, a P/E/G ratio of 5.24 and a beta of 0.65.

Dropbox (NASDAQ:DBX) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.74 by $0.01. The business had revenue of $631.50 million for the quarter, compared to the consensus estimate of $626.69 million. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%.The firm’s quarterly revenue was up .9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.71 earnings per share. Sell-side analysts forecast that Dropbox, Inc. will post 1.94 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several research firms have recently issued reports on DBX. Citigroup upped their price objective on Dropbox from $28.00 to $33.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. Weiss Ratings raised shares of Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, August 13th. William Blair upgraded shares of Dropbox from an “underperform” rating to a “market perform” rating in a research report on Friday, August 7th. Bank of America restated an “underperform” rating on shares of Dropbox in a research report on Friday, August 7th. Finally, Royal Bank Of Canada reiterated an “outperform” rating and set a $42.00 price target on shares of Dropbox in a report on Thursday, September 3rd. One research analyst has rated the stock with a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus target price of $30.75.

Trending Headlines about Dropbox

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: A recent analysis said Dropbox’s user rebound is encouraging, which could support investor confidence in customer retention and engagement despite broader concerns about the product’s growth prospects. Dropbox: User Rebound Encouraging, But This Remains A Dead Product
• Positive Sentiment: Dropbox’s latest quarterly results modestly exceeded expectations, with earnings per share of $0.75 versus the $0.74 consensus and revenue of $631.5 million versus $626.7 million expected. Revenue increased 0.9% year over year, offering some fundamental support for the stock.
• Neutral Sentiment: Institutional ownership remains high at approximately 94.8%, and several funds recently increased their positions. However, these reported changes involved relatively small holdings and may have limited immediate influence on the share price.
• Negative Sentiment: CEO Andrew Houston sold 383,800 shares for approximately $13.4 million, while CFO Ross Tennenbaum sold 97,558 shares for about $3.4 million. Both transactions were executed under pre-arranged Rule 10b5-1 plans, reducing the likelihood that they reflect new information about business conditions, but insider selling can still weigh on sentiment. Dropbox Insider Sold Shares Worth $3,416,208
• Negative Sentiment: Analyst sentiment remains cautious. The stock carries a consensus “Reduce” rating and an average price target of $30.75, below its recent trading level. A separate research note downgraded Dropbox, arguing that the product remains mature or stagnant despite the user rebound. Dropbox Downgrade Analysis

Institutional Trading of Dropbox

Several large investors have recently modified their holdings of the stock. WINTON GROUP Ltd bought a new stake in shares of Dropbox during the second quarter valued at approximately $4,427,000. Baird Financial Group Inc. bought a new position in shares of Dropbox in the 2nd quarter worth $209,000. Spark Investment Management LLC bought a new position in shares of Dropbox in the 2nd quarter worth $577,000. Nykredit A S acquired a new stake in Dropbox in the 2nd quarter valued at $261,000. Finally, Corient Private Wealth LP grew its position in Dropbox by 358.4% in the 2nd quarter. Corient Private Wealth LP now owns 244,482 shares of the company’s stock valued at $6,716,000 after purchasing an additional 191,147 shares during the period. Institutional investors and hedge funds own 94.84% of the company’s stock.

Dropbox Company Profile

Dropbox, Inc (NASDAQ: DBX) is a technology company that provides cloud-based file storage, synchronization, sharing and collaboration services. Its platform enables individuals, businesses and organizations to store files online, access them across connected devices, and collaborate on documents and other digital content.

The company’s offerings include Dropbox for file management and collaboration, Dropbox Paper for shared document and project work, Dropbox Sign for electronic signatures, and DocSend for securely sharing and tracking business documents.