Royal Bank Of Canada Issues Positive Forecast for Dropbox (NASDAQ:DBX) Stock Price

Dropbox (NASDAQ:DBX) had its price target raised by Royal Bank Of Canada from $42.00 to $48.00 in a research report report published on Friday,Benzinga reports. Royal Bank Of Canada currently has an outperform rating on the stock.

Other research analysts also recently issued reports about the company. UBS Group boosted their price objective on Dropbox from $23.00 to $26.00 and gave the company a “sell” rating in a research note on Friday. Stephens started coverage on shares of Dropbox in a research note on Tuesday. They set an “equal weight” rating and a $39.00 target price on the stock. Weiss Ratings raised shares of Dropbox from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday. Wall Street Zen lowered shares of Dropbox from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Finally, Zacks Research upgraded shares of Dropbox from a “strong sell” rating to a “hold” rating in a research report on Tuesday, October 6th. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Reduce” and a consensus target price of $33.40.

Dropbox Trading Down 3.1%

NASDAQ DBX traded down $1.10 on Friday, hitting $34.66. 4,953,244 shares of the company traded hands, compared to its average volume of 2,906,249. The company has a market capitalization of $7.82 billion, a price-to-earnings ratio of 18.74, a P/E/G ratio of 3.52 and a beta of 0.62. The business’s 50 day moving average price is $35.29 and its 200-day moving average price is $29.25. Dropbox has a 52-week low of $21.69 and a 52-week high of $38.22.

Dropbox (NASDAQ:DBX) last released its quarterly earnings results on Thursday, November 5th. The company reported $0.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.73 by $0.15. The business had revenue of $637.30 million during the quarter, compared to analyst estimates of $629.59 million. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%. Dropbox’s revenue for the quarter was up .5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.74 earnings per share. As a group, sell-side analysts predict that Dropbox will post 1.94 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Andrew Houston sold 383,800 shares of the business’s stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $35.02, for a total value of $13,440,676.00. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider William T. Yoon sold 12,382 shares of the business’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $34.78, for a total transaction of $430,645.96. Following the completion of the transaction, the insider directly owned 366,693 shares in the company, valued at $12,753,582.54. This trade represents a 3.27% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,331,268 shares of company stock worth $46,553,783 over the last ninety days. 35.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Arrowstreet Capital Limited Partnership lifted its position in shares of Dropbox by 12.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company’s stock worth $193,886,000 after buying an additional 960,109 shares in the last quarter. Wedge Capital Management L L P NC grew its holdings in Dropbox by 26.4% during the 2nd quarter. Wedge Capital Management L L P NC now owns 3,005,173 shares of the company’s stock valued at $82,552,000 after buying an additional 627,111 shares in the last quarter. Russell Investments Group Ltd. increased its stake in Dropbox by 4.7% in the 3rd quarter. Russell Investments Group Ltd. now owns 2,237,858 shares of the company’s stock worth $75,519,000 after acquiring an additional 100,398 shares during the last quarter. Pacer Advisors Inc. increased its stake in Dropbox by 2.8% in the 1st quarter. Pacer Advisors Inc. now owns 2,047,966 shares of the company’s stock worth $46,530,000 after acquiring an additional 55,921 shares during the last quarter. Finally, KBC Group NV increased its stake in Dropbox by 12.6% in the 1st quarter. KBC Group NV now owns 944,829 shares of the company’s stock worth $21,466,000 after acquiring an additional 105,876 shares during the last quarter. Institutional investors own 94.84% of the company’s stock.

Trending Headlines about Dropbox

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Dropbox reported Q3 adjusted EPS of $0.88 versus estimates of $0.73 and revenue of $637.3 million versus $629.6 million expected. Q4 revenue guidance of $630 million–$633 million also topped the $628.4 million consensus. Q3 earnings and revenue top estimates
• Positive Sentiment: RBC raised its price target to $48 from $42 and maintained an Outperform rating, signaling improved analyst confidence. RBC raises Dropbox price target
• Positive Sentiment: Dropbox plans to acquire Tigris Data for $350 million to build out AI infrastructure and introduce DBX Agent Cloud. Management expects the deal to close in Q4 2026 and has indicated 150 basis points of operating-margin expansion in 2027. Dropbox to acquire Tigris Data Margin expansion outlook
• Neutral Sentiment: CEO Andrew Houston sold 383,800 shares under a pre-arranged Rule 10b5-1 trading plan; the planned nature of the sale makes its signal less clear. CEO share sale
• Negative Sentiment: Revenue increased just 0.5% year over year, highlighting the modest underlying growth rate. The $350 million Tigris purchase also brings investment and integration risks as Dropbox pursues its AI strategy.

About Dropbox

Dropbox, Inc (NASDAQ: DBX) is a software company that provides cloud-based tools for storing, organizing, sharing and collaborating on files. Its platform enables individuals, businesses and teams to access documents, photos and other content across connected devices, synchronize files and manage shared workflows.

The company’s offerings include Dropbox for cloud storage and file collaboration, Dropbox Paper for shared documents and project work, Dropbox Sign for electronic signatures, and DocSend for securely sharing and tracking business documents.