Dropbox, Inc. (NASDAQ:DBX) Receives Average Rating of “Reduce” from Analysts

Dropbox, Inc. (NASDAQ:DBX) has been assigned an average rating of “Reduce” from the six research firms that are covering the stock, MarketBeat.com reports. Two investment analysts have rated the stock with a sell recommendation, three have given a hold recommendation and one has issued a buy recommendation on the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $27.00.

Several brokerages have weighed in on DBX. Royal Bank Of Canada reissued an “outperform” rating on shares of Dropbox in a report on Monday, June 1st. Wall Street Zen lowered shares of Dropbox from a “buy” rating to a “hold” rating in a research report on Saturday, June 20th. William Blair reiterated an “underperform” rating on shares of Dropbox in a research note on Monday, March 23rd. Weiss Ratings reissued a “hold (c)” rating on shares of Dropbox in a research report on Monday, May 4th. Finally, Citigroup upped their price target on shares of Dropbox from $27.00 to $28.00 and gave the company a “neutral” rating in a research note on Monday, May 11th.

Dropbox Trading Down 0.8%

NASDAQ DBX opened at $26.35 on Thursday. The firm’s fifty day simple moving average is $26.13 and its two-hundred day simple moving average is $25.91. The firm has a market capitalization of $6.15 billion, a P/E ratio of 14.40, a P/E/G ratio of 2.91 and a beta of 0.67. Dropbox has a 12-month low of $21.69 and a 12-month high of $32.40.

Dropbox (NASDAQ:DBX) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.76 EPS for the quarter, beating the consensus estimate of $0.71 by $0.05. Dropbox had a negative return on equity of 30.01% and a net margin of 18.71%.The firm had revenue of $629.50 million during the quarter, compared to analyst estimates of $620.56 million. During the same quarter in the prior year, the business posted $0.70 EPS. The business’s revenue for the quarter was up .8% compared to the same quarter last year. As a group, sell-side analysts predict that Dropbox will post 2.09 earnings per share for the current fiscal year.

Insider Activity

In other Dropbox news, CEO Ashraf Alkarmi sold 22,700 shares of Dropbox stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $27.86, for a total transaction of $632,422.00. Following the completion of the sale, the chief executive officer owned 1,080,746 shares of the company’s stock, valued at approximately $30,109,583.56. The trade was a 2.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider William T. Yoon sold 7,230 shares of the business’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $27.57, for a total value of $199,331.10. Following the sale, the insider owned 366,963 shares in the company, valued at approximately $10,117,169.91. The trade was a 1.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 239,774 shares of company stock valued at $6,005,653. 35.48% of the stock is owned by corporate insiders.

Institutional Trading of Dropbox

Large investors have recently made changes to their positions in the business. Empowered Funds LLC boosted its holdings in 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 purchasing an additional 2,655 shares during the last quarter. Cetera Investment Advisers increased its holdings in Dropbox by 10.8% in the 2nd quarter. Cetera Investment Advisers now owns 24,623 shares of the company’s stock worth $704,000 after acquiring an additional 2,405 shares in the last quarter. EverSource Wealth Advisors LLC raised its position in shares of 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 last quarter. Cresset Asset Management LLC raised its holdings in shares of Dropbox by 75.8% during the second quarter. Cresset Asset Management LLC now owns 15,230 shares of the company’s stock valued at $436,000 after acquiring an additional 6,569 shares during the last quarter. Finally, Federated Hermes Inc. lifted its holdings in Dropbox by 360.9% in the 2nd quarter. Federated Hermes Inc. now owns 117,852 shares of the company’s stock valued at $3,371,000 after purchasing an additional 92,280 shares in the last quarter. 94.84% of the stock is owned by hedge funds and other institutional investors.

About Dropbox

Dropbox, Inc (NASDAQ: DBX) is a leading provider of cloud-based file storage, collaboration, and productivity tools. Founded in 2007 and headquartered in San Francisco, California, the company offers a suite of services designed to help individuals and organizations securely store, share, and manage digital content. Dropbox has grown from a simple file-syncing application into an integrated collaboration platform used by millions of customers around the globe.

At its core, Dropbox provides cloud storage plans tailored for consumers and businesses.