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 note issued to investors on Saturday.

A number of other equities research analysts have also issued reports on DBX. Weiss Ratings reiterated a “hold (c+)” rating on shares of Dropbox in a research note on Wednesday, October 8th. Royal Bank Of Canada upped their price target on Dropbox from $35.00 to $38.00 and gave the stock an “outperform” rating in a report on Friday. Finally, UBS Group lowered shares of Dropbox from a “neutral” rating to a “sell” rating and dropped their price objective for the company from $29.00 to $27.00 in a research note on Thursday, September 18th. One analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Dropbox currently has an average rating of “Hold” and an average target price of $31.75.

Dropbox Stock Up 7.7%

Dropbox stock opened at $30.87 on Friday. The firm has a fifty day moving average of $29.80 and a 200-day moving average of $28.78. Dropbox has a 52-week low of $24.42 and a 52-week high of $33.33. The firm has a market capitalization of $8.33 billion, a P/E ratio of 17.44, a PEG ratio of 4.07 and a beta of 0.66.

Dropbox (NASDAQ:DBX) last posted its earnings results on Thursday, November 6th. The company reported $0.74 earnings per share for the quarter, beating the consensus estimate of $0.64 by $0.10. Dropbox had a net margin of 19.87% and a negative return on equity of 49.51%. The business had revenue of $634.40 million for the quarter, compared to analyst estimates of $623.59 million. During the same quarter in the previous year, the business posted $0.60 EPS. The business’s quarterly revenue was down .7% on a year-over-year basis. Dropbox has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS. On average, research analysts expect that Dropbox will post 1.64 EPS for the current fiscal year.

Insider Transactions at Dropbox

In other Dropbox news, CFO Timothy Regan sold 5,000 shares of the firm’s stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $29.76, for a total transaction of $148,800.00. Following the completion of the sale, the chief financial officer owned 471,621 shares in the company, valued at $14,035,440.96. This trade represents a 1.05% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Ashraf Alkarmi sold 10,098 shares of Dropbox stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $27.30, for a total value of $275,675.40. Following the sale, the insider owned 469,333 shares in the company, valued at $12,812,790.90. This represents a 2.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 318,698 shares of company stock valued at $9,251,159 in the last three months. 28.59% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in DBX. Envestnet Asset Management Inc. grew its holdings in Dropbox by 177.2% during the 1st quarter. Envestnet Asset Management Inc. now owns 109,549 shares of the company’s stock worth $2,926,000 after acquiring an additional 70,023 shares in the last quarter. Nisa Investment Advisors LLC lifted its position in shares of Dropbox by 3,492.7% during the first quarter. Nisa Investment Advisors LLC now owns 193,611 shares of the company’s stock worth $5,171,000 after purchasing an additional 188,222 shares during the last quarter. SBI Securities Co. Ltd. grew its stake in Dropbox by 33.4% in the first quarter. SBI Securities Co. Ltd. now owns 1,794 shares of the company’s stock worth $48,000 after purchasing an additional 449 shares in the last quarter. Massachusetts Financial Services Co. MA increased its holdings in Dropbox by 10.2% in the first quarter. Massachusetts Financial Services Co. MA now owns 820,056 shares of the company’s stock valued at $21,904,000 after buying an additional 76,111 shares during the last quarter. Finally, Burns Matteson Capital Management LLC raised its stake in Dropbox by 3.6% during the first quarter. Burns Matteson Capital Management LLC now owns 16,158 shares of the company’s stock valued at $432,000 after buying an additional 568 shares in the last quarter. 94.84% of the stock is currently owned by institutional investors.

Dropbox Company Profile

Dropbox, Inc provides a content collaboration platform worldwide. The company's platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. It serves customers in professional services, technology, media, education, industrial, consumer and retail, and financial services industries.