Dropbox (NASDAQ:DBX) Raised to Buy at Wall Street Zen

Dropbox (NASDAQ:DBX) was upgraded by stock analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a report released on Saturday, Wall Street Zen reports.

Several other research firms also recently issued reports on DBX. UBS Group upped their price objective on shares of Dropbox from $23.00 to $26.00 and gave the company a “sell” rating in a report on Friday. Zacks Research upgraded shares of Dropbox from a “strong sell” rating to a “hold” rating in a research note on Tuesday, October 6th. Bank of America reissued an “underperform” rating on shares of Dropbox in a research report on Friday, August 7th. William Blair upgraded shares of Dropbox from an “underperform” rating to a “market perform” rating in a research note on Friday, August 7th. Finally, Royal Bank Of Canada upped their price target on shares of Dropbox from $42.00 to $48.00 and gave the company an “outperform” rating in a research note on Friday. Two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Reduce” and an average target price of $33.40.

Dropbox Price Performance

Shares of DBX stock opened at $34.66 on Friday. Dropbox has a 1-year low of $21.69 and a 1-year high of $38.22. The stock’s fifty day moving average price is $35.29 and its 200 day moving average price is $29.25. The company has a market cap of $7.82 billion, a price-to-earnings ratio of 18.74, a price-to-earnings-growth ratio of 2.84 and a beta of 0.61.

Dropbox (NASDAQ:DBX) last announced its earnings results on Thursday, November 5th. The company reported $0.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.73 by $0.15. Dropbox had a negative return on equity of 22.35% and a net margin of 17.17%. The company had revenue of $637.30 million for the quarter, compared to analyst estimates of $629.59 million. During the same period in the prior year, the company posted $0.74 EPS. The firm’s quarterly revenue was up .5% compared to the same quarter last year. As a group, equities research analysts anticipate that Dropbox will post 2.33 earnings per share for the current year.

Insider Buying and Selling at Dropbox

In other news, CAO Sarah Schubach sold 2,056 shares of the stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $35.79, for a total value of $73,584.24. Following the transaction, the chief accounting officer directly owned 130,821 shares of the company’s stock, valued at approximately $4,682,083.59. This represents a 1.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ashraf Alkarmi sold 28,800 shares of the firm’s stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $35.54, for a total value of $1,023,552.00. Following the completion of the transaction, the chief executive officer owned 1,004,081 shares of the company’s stock, valued at approximately $35,685,038.74. The trade was a 2.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 1,331,268 shares of company stock worth $46,553,783. 35.48% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Dropbox

A number of institutional investors have recently bought and sold shares of the business. Elevation Wealth Partners LLC raised its position in Dropbox by 63.0% during the third quarter. Elevation Wealth Partners LLC now owns 1,363 shares of the company’s stock valued at $46,000 after acquiring an additional 527 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in Dropbox by 68.1% in the first quarter. EverSource Wealth Advisors LLC now owns 2,052 shares of the company’s stock valued at $47,000 after acquiring an additional 831 shares during the period. Farther Finance Advisors LLC lifted its holdings in Dropbox by 166.5% in the third quarter. Farther Finance Advisors LLC now owns 2,617 shares of the company’s stock valued at $89,000 after acquiring an additional 1,635 shares during the period. Signaturefd LLC lifted its holdings in Dropbox by 103.4% in the third quarter. Signaturefd LLC now owns 5,616 shares of the company’s stock valued at $190,000 after acquiring an additional 2,855 shares during the period. Finally, Parallel Advisors LLC boosted its position in Dropbox by 49.8% in the 1st quarter. Parallel Advisors LLC now owns 8,634 shares of the company’s stock worth $196,000 after purchasing an additional 2,869 shares in the last quarter. 94.84% of the stock is owned by hedge funds and other institutional investors.

Key Dropbox News

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Dropbox reported Q3 adjusted EPS of $0.88 versus estimates of $0.73 and revenue of $637.3 million versus $629.6 million expected. Q4 revenue guidance of $630 million–$633 million also topped the $628.4 million consensus. Q3 earnings and revenue top estimates
• Positive Sentiment: RBC raised its price target to $48 from $42 and maintained an Outperform rating, signaling improved analyst confidence. RBC raises Dropbox price target
• Positive Sentiment: Dropbox plans to acquire Tigris Data for $350 million to build out AI infrastructure and introduce DBX Agent Cloud. Management expects the deal to close in Q4 2026 and has indicated 150 basis points of operating-margin expansion in 2027. Dropbox to acquire Tigris Data Margin expansion outlook
• Neutral Sentiment: CEO Andrew Houston sold 383,800 shares under a pre-arranged Rule 10b5-1 trading plan; the planned nature of the sale makes its signal less clear. CEO share sale
• Negative Sentiment: Revenue increased just 0.5% year over year, highlighting the modest underlying growth rate. The $350 million Tigris purchase also brings investment and integration risks as Dropbox pursues its AI strategy.

About Dropbox

Dropbox, Inc is a cloud software company that helps individuals and organizations store, access, sync and share files across devices. Its core Dropbox service also supports collaboration through shared folders, comments and tools for managing digital content.

The company offers products for a range of work and collaboration needs, including Dropbox Sign for electronic signatures and DocSend for sharing and tracking documents. Dropbox has also developed tools for reviewing creative content and organizing work, alongside integrations with other business applications.

Founded in 2007 by Drew Houston and Arash Ferdowsi, Dropbox serves customers around the world.