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

Dropbox, Inc. (NASDAQ:DBX) has earned a consensus recommendation of “Reduce” from the eight analysts that are covering the stock, Marketbeat Ratings reports. Three research analysts have rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $30.75.

A number of brokerages have weighed in on DBX. Bank of America reiterated an “underperform” rating on shares of Dropbox in a research note on Friday, August 7th. William Blair raised shares of Dropbox from an “underperform” rating to a “market perform” rating 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. Royal Bank Of Canada reiterated an “outperform” rating and set a $42.00 price target on shares of Dropbox in a research note on Thursday, September 3rd. Finally, Zacks Research downgraded shares of Dropbox from a “hold” rating to a “strong sell” rating in a research report on Wednesday, August 19th.

Dropbox Stock Performance

DBX opened at $35.56 on Tuesday. Dropbox has a one year low of $21.69 and a one year high of $36.37. The stock has a market capitalization of $8.03 billion, a P/E ratio of 19.76, a price-to-earnings-growth ratio of 5.24 and a beta of 0.65. The business’s 50-day simple moving average is $32.83 and its 200-day simple moving average is $28.10.

Dropbox (NASDAQ:DBX) last announced 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 analysts’ expectations of $626.69 million. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%.The business’s revenue was up .9% on a year-over-year basis. During the same period in the prior year, the firm earned $0.71 EPS. On average, equities research analysts forecast that Dropbox will post 1.94 EPS for the current fiscal year.

Insiders Place Their Bets

In other Dropbox news, insider Eric T. Webster sold 15,830 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $34.09, for a total transaction of $539,644.70. Following the completion of the sale, the insider directly owned 416,236 shares of the company’s stock, valued at $14,189,485.24. This represents a 3.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Sarah Schubach sold 1,631 shares of the stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $35.50, for a total value of $57,900.50. Following the sale, the chief accounting officer directly owned 115,150 shares of the company’s stock, valued at $4,087,825. The trade was a 1.40% 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 ninety days, insiders sold 55,647 shares of company stock valued at $1,876,439. 35.48% of the stock is owned by insiders.

Institutional Investors Weigh In On Dropbox

Large investors have recently modified their holdings of the stock. Empowered Funds LLC boosted its holdings in shares of Dropbox by 7.3% in the first quarter. Empowered Funds LLC now owns 38,795 shares of the company’s stock valued at $1,036,000 after acquiring an additional 2,655 shares in the last quarter. Cetera Investment Advisers increased its position in Dropbox by 10.8% during the 2nd quarter. Cetera Investment Advisers now owns 24,623 shares of the company’s stock worth $704,000 after purchasing an additional 2,405 shares during the period. EverSource Wealth Advisors LLC increased its position in Dropbox by 88.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,681 shares of the company’s stock worth $48,000 after purchasing an additional 787 shares during the period. Cresset Asset Management LLC increased its position in Dropbox by 75.8% during the 2nd quarter. Cresset Asset Management LLC now owns 15,230 shares of the company’s stock worth $436,000 after purchasing an additional 6,569 shares during the period. Finally, Federated Hermes Inc. raised its stake in shares of Dropbox by 360.9% during the 2nd quarter. Federated Hermes Inc. now owns 117,852 shares of the company’s stock worth $3,371,000 after buying an additional 92,280 shares in the last quarter. Hedge funds and other institutional investors 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.