Dropbox (NASDAQ:DBX) Stock Price Down 6.3% Following Insider Selling


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Dropbox, Inc. (NASDAQ:DBX) fell 6.3% during mid-day trading on Wednesday following insider selling activity. The company traded as low as $22.05 and last traded at $22.12. 14,474,495 shares changed hands during trading, an increase of 110% from the average session volume of 6,893,174 shares. The stock had previously closed at $23.61.

Specifically, insider Bart Volkmer sold 10,000 shares of the company’s stock in a transaction that occurred on Monday, January 11th. The stock was sold at an average price of $23.34, for a total transaction of $233,400.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Timothy Regan sold 1,941 shares of the company’s stock in a transaction that occurred on Monday, October 26th. The shares were sold at an average price of $19.60, for a total value of $38,043.60. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 42,303 shares of company stock worth $895,722. 30.81% of the stock is currently owned by insiders.

Several equities analysts have recently commented on the company. BidaskClub lowered Dropbox from a “hold” rating to a “sell” rating in a report on Thursday, December 31st. Zacks Investment Research downgraded Dropbox from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, January 6th. Two analysts have rated the stock with a sell rating, three have issued a hold rating and eight have issued a buy rating to the stock. The company currently has an average rating of “Hold” and an average price target of $27.56.

The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.20. The firm has a market cap of $9.15 billion, a price-to-earnings ratio of 116.42, a price-to-earnings-growth ratio of 2.66 and a beta of 0.86. The business’s fifty day moving average is $22.23 and its two-hundred day moving average is $20.73.

Dropbox (NASDAQ:DBX) last issued its quarterly earnings results on Thursday, November 5th. The company reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.18 by $0.08. Dropbox had a net margin of 4.47% and a return on equity of 15.02%. The business had revenue of $487.40 million during the quarter, compared to analyst estimates of $483.64 million. During the same quarter last year, the business posted $0.13 earnings per share. Dropbox’s revenue for the quarter was up 13.8% compared to the same quarter last year. Research analysts forecast that Dropbox, Inc. will post 0.23 EPS for the current year.

A number of hedge funds have recently made changes to their positions in DBX. Vanguard Group Inc. increased its holdings in Dropbox by 14.9% during the 2nd quarter. Vanguard Group Inc. now owns 23,754,147 shares of the company’s stock worth $517,127,000 after purchasing an additional 3,086,573 shares during the period. BlackRock Inc. boosted its holdings in shares of Dropbox by 11.8% during the 3rd quarter. BlackRock Inc. now owns 16,227,947 shares of the company’s stock valued at $312,551,000 after buying an additional 1,716,070 shares in the last quarter. Ninety One UK Ltd boosted its holdings in shares of Dropbox by 3.4% during the 3rd quarter. Ninety One UK Ltd now owns 10,259,448 shares of the company’s stock valued at $197,597,000 after buying an additional 339,280 shares in the last quarter. First Trust Advisors LP boosted its holdings in shares of Dropbox by 1.4% during the 3rd quarter. First Trust Advisors LP now owns 7,865,742 shares of the company’s stock valued at $151,494,000 after buying an additional 104,934 shares in the last quarter. Finally, State Street Corp boosted its stake in Dropbox by 0.8% in the 3rd quarter. State Street Corp now owns 5,011,093 shares of the company’s stock worth $96,514,000 after purchasing an additional 37,553 shares in the last quarter. 50.48% of the stock is currently owned by hedge funds and other institutional investors.

Dropbox Company Profile (NASDAQ:DBX)

Dropbox, Inc provides a collaboration platform worldwide. The company's platform allows individuals, 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. As of December 31, 2019, it had approximately 600 million registered users across 180 countries.

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