Dropbox (NASDAQ:DBX) Downgraded by Wall Street Zen to “Hold”

Wall Street Zen lowered shares of Dropbox (NASDAQ:DBX) from a buy rating to a hold rating in a report published on Saturday morning.

A number of other analysts also recently commented on the stock. Royal Bank Of Canada reissued an “outperform” rating on shares of Dropbox in a report on Monday, June 1st. Bank of America reaffirmed an “underperform” rating on shares of Dropbox in a report on Friday. Citigroup lifted their price target on shares of Dropbox from $28.00 to $33.00 and gave the company a “neutral” rating in a research report on Friday. William Blair raised Dropbox from an “underperform” rating to a “market perform” rating in a research note on Friday. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Dropbox in a report on Friday, July 31st. One analyst has rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $28.25.

Dropbox Stock Performance

NASDAQ:DBX opened at $34.81 on Friday. Dropbox has a 1 year low of $21.69 and a 1 year high of $35.72. The stock has a fifty day moving average price of $29.08 and a two-hundred day moving average price of $26.46. The stock has a market capitalization of $8.12 billion, a price-to-earnings ratio of 19.34, a PEG ratio of 3.81 and a beta of 0.64.

Dropbox (NASDAQ:DBX) last issued its earnings results on Thursday, August 6th. The company reported $0.75 EPS for the quarter, topping the consensus estimate of $0.74 by $0.01. Dropbox had a net margin of 17.49% and a negative return on equity of 25.65%. The company had revenue of $631.50 million for the quarter, compared to analyst estimates of $626.69 million. During the same period in the previous year, the firm earned $0.71 EPS. The business’s revenue was up .9% on a year-over-year basis. On average, analysts predict that Dropbox will post 2.09 EPS for the current year.

Insider Activity at Dropbox

In other Dropbox news, CAO Sarah Elizabeth Schubach sold 1,632 shares of Dropbox stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $31.61, for a total transaction of $51,587.52. Following the transaction, the chief accounting officer directly owned 124,266 shares of the company’s stock, valued at $3,928,048.26. The trade was a 1.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Houston sold 30,332 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $27.50, for a total transaction of $834,130.00. 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. Over the last three months, insiders sold 130,945 shares of company stock worth $3,565,129. 35.48% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. WealthCollab LLC lifted its position in Dropbox by 20.6% during the 4th quarter. WealthCollab LLC now owns 2,356 shares of the company’s stock worth $65,000 after acquiring an additional 403 shares in the last quarter. Parallel Advisors LLC lifted its position in shares of Dropbox by 8.3% during the fourth quarter. Parallel Advisors LLC now owns 5,765 shares of the company’s stock worth $160,000 after purchasing an additional 440 shares in the last quarter. Lakewood Asset Management LLC boosted its stake in shares of Dropbox by 1.0% in the fourth quarter. Lakewood Asset Management LLC now owns 44,905 shares of the company’s stock valued at $1,248,000 after purchasing an additional 458 shares during the period. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Dropbox by 1.8% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 26,254 shares of the company’s stock valued at $730,000 after purchasing an additional 466 shares during the period. Finally, Merit Financial Group LLC grew its holdings in Dropbox by 4.4% during the 3rd quarter. Merit Financial Group LLC now owns 11,385 shares of the company’s stock valued at $344,000 after purchasing an additional 480 shares in the last quarter. Institutional investors and hedge funds own 94.84% of the company’s stock.

Key Dropbox News

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Dropbox reported fiscal second-quarter 2026 adjusted earnings of $0.75 per share, exceeding the $0.74 consensus estimate and improving from $0.71 a year earlier. Revenue of $631.5 million also topped expectations of $626.7 million. Dropbox Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Management raised its 2026 outlook, while improving core file, sync and sharing trends, growth in paying users and expanding artificial-intelligence capabilities provide potential support for future results. Dropbox Q2 Earnings Beat Estimates on Core FSS, 2026 Outlook Raised
• Positive Sentiment: Dropbox forecast third-quarter revenue of $627 million to $630 million, above the $625.9 million analyst consensus, signaling expectations for continued operating momentum. Dropbox Earnings Conference Call
• Positive Sentiment: The company’s AI-powered search initiatives could help differentiate Dropbox, improve content discovery and create new opportunities to increase engagement and monetization. Can Dropbox Redefine Itself Through AI-Powered Search?
• Neutral Sentiment: Despite the earnings beat, quarterly revenue increased only 0.9% year over year. This reinforces the view that Dropbox must accelerate growth beyond its mature core storage and collaboration business. Dropbox Shares Decline Despite Earnings Beat as Revenue Growth Disappoints

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.