Dropbox (NASDAQ:DBX) Stock Rating Upgraded by Zacks Research

Dropbox (NASDAQ:DBX) was upgraded by analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a report issued on Tuesday, Zacks reports.

Several other equities research analysts have also recently issued reports on DBX. Citigroup cut shares of Dropbox from a “neutral” rating to a “sell” rating and lowered their price objective for the company from $33.00 to $29.00 in a research report on Thursday, September 24th. William Blair raised shares of Dropbox from an “underperform” rating to a “market perform” rating in a research report on Friday, August 7th. Wall Street Zen downgraded shares of Dropbox from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Bank of America reiterated an “underperform” rating on shares of Dropbox in a report on Friday, August 7th. Finally, Weiss Ratings raised Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, August 13th. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $29.75.

Dropbox Stock Down 1.9%

DBX stock opened at $33.08 on Tuesday. Dropbox has a twelve month low of $21.69 and a twelve month high of $38.17. The firm has a market cap of $7.47 billion, a price-to-earnings ratio of 18.38, a PEG ratio of 4.97 and a beta of 0.63. The business’s fifty day simple moving average is $34.54 and its two-hundred day simple moving average is $29.27.

Dropbox (NASDAQ:DBX) last issued its earnings results on Thursday, August 6th. The company reported $0.75 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.74 by $0.01. The firm had revenue of $631.50 million during the quarter, compared to analyst estimates of $626.69 million. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. The business’s revenue was up .9% on a year-over-year basis. During the same period in the previous year, the firm earned $0.71 earnings per share. Research analysts expect that Dropbox will post 1.94 EPS for the current year.

Insider Activity at Dropbox

In other news, CFO Ross Tennenbaum sold 97,558 shares of the company’s stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $35.02, for a total value of $3,416,481.16. Following the completion of the sale, the chief financial officer owned 690,666 shares of the company’s stock, valued at approximately $24,187,123.32. This represents a 12.38% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric T. Webster sold 15,830 shares of the stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $34.09, for a total transaction of $539,644.70. Following the transaction, the insider owned 416,236 shares in the company, valued at approximately $14,189,485.24. This represents a 3.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 919,544 shares of company stock worth $31,818,754 over the last quarter. Corporate insiders own 35.48% of the company’s stock.

Hedge Funds Weigh In On Dropbox

A number of large investors have recently bought and sold shares of DBX. Arrowstreet Capital Limited Partnership increased its holdings in shares of Dropbox by 12.7% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company’s stock valued at $193,886,000 after acquiring an additional 960,109 shares during the period. Wedge Capital Management L L P NC lifted its stake in shares of Dropbox by 26.4% during the 2nd 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 during the last quarter. Allianz Asset Management GmbH boosted its position in Dropbox by 28.1% during the fourth quarter. Allianz Asset Management GmbH now owns 2,720,372 shares of the company’s stock valued at $75,626,000 after purchasing an additional 596,440 shares in the last quarter. Pacer Advisors Inc. boosted its position in Dropbox by 2.8% during the first quarter. Pacer Advisors Inc. now owns 2,047,966 shares of the company’s stock valued at $46,530,000 after purchasing an additional 55,921 shares in the last quarter. Finally, KBC Group NV grew its stake in Dropbox by 12.6% in the first quarter. KBC Group NV now owns 944,829 shares of the company’s stock valued at $21,466,000 after purchasing an additional 105,876 shares during the last quarter. Institutional investors own 94.84% of the company’s stock.

Dropbox Company Profile

Dropbox, Inc (NASDAQ: DBX) is a software company that provides cloud-based tools for storing, organizing, sharing and collaborating on files. Its platform enables individuals, businesses and teams to access files across devices, synchronize content and manage collaboration through web, desktop and mobile applications.

The company’s product portfolio includes Dropbox for cloud storage and file collaboration, Dropbox Sign for electronic signatures and document workflows, and DocSend for securely sharing and tracking business documents.