Dropbox, Inc. (NASDAQ:DBX) Given Consensus Rating of “Reduce” by Brokerages

Shares of Dropbox, Inc. (NASDAQ:DBX) have earned an average recommendation of “Reduce” from the eight ratings firms that are presently covering the firm, Marketbeat reports. Three equities research analysts have rated the stock with a sell recommendation, four have issued a hold recommendation and one has assigned a buy recommendation to the company. The average 1-year target price among analysts that have covered the stock in the last year is $30.75.

Several research firms have weighed in on DBX. Bank of America reissued an “underperform” rating on shares of Dropbox in a report on Friday, August 7th. Weiss Ratings upgraded shares of Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, August 13th. Citigroup upped their price target on shares of Dropbox from $28.00 to $33.00 and gave the company a “neutral” rating in a report on Friday, August 7th. Zacks Research cut Dropbox from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 19th. Finally, Royal Bank Of Canada reiterated an “outperform” rating and set a $42.00 target price on shares of Dropbox in a research report on Thursday, September 3rd.

Dropbox Stock Performance

Dropbox stock opened at $37.31 on Tuesday. Dropbox has a one year low of $21.69 and a one year high of $37.39. The business has a fifty day moving average of $33.00 and a two-hundred day moving average of $28.21. The company has a market cap of $8.42 billion, a P/E ratio of 20.73, a price-to-earnings-growth ratio of 5.24 and a beta of 0.65.

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

Insider Activity

In other Dropbox news, CAO Sarah Schubach sold 1,631 shares of the business’s stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $35.50, for a total transaction of $57,900.50. Following the transaction, the chief accounting officer owned 115,150 shares in the company, valued at $4,087,825. The trade was a 1.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Lisa M. Campbell sold 4,598 shares of the company’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $34.78, for a total value of $159,918.44. Following the completion of the transaction, the director owned 19,471 shares of the company’s stock, valued at approximately $677,201.38. This represents a 19.10% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 535,699 shares of company stock worth $18,698,464 in the last quarter. Insiders own 35.48% of the company’s stock.

Institutional Investors Weigh In On Dropbox

Institutional investors have recently modified their holdings of the stock. LSV Asset Management increased its stake in shares of Dropbox by 1.1% in the fourth quarter. LSV Asset Management now owns 11,735,641 shares of the company’s stock valued at $326,251,000 after purchasing an additional 121,999 shares during the period. Arrowstreet Capital Limited Partnership boosted its position in Dropbox by 11.3% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 7,573,627 shares of the company’s stock worth $210,547,000 after acquiring an additional 767,119 shares during the period. California State Teachers Retirement System boosted its position in Dropbox by 2,565.8% during the 2nd quarter. California State Teachers Retirement System now owns 5,504,631 shares of the company’s stock worth $151,212,000 after acquiring an additional 5,298,138 shares during the period. Wedge Capital Management L L P NC grew its stake in shares of Dropbox by 26.4% in the second quarter. Wedge Capital Management L L P NC now owns 3,005,173 shares of the company’s stock worth $82,552,000 after purchasing an additional 627,111 shares in the last quarter. Finally, Allianz Asset Management GmbH grew its stake in shares of Dropbox by 28.1% in the fourth quarter. Allianz Asset Management GmbH now owns 2,720,372 shares of the company’s stock worth $75,626,000 after purchasing an additional 596,440 shares in the last quarter. Institutional investors and hedge funds own 94.84% of the company’s stock.

About Dropbox

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.