Ali Dasdan Sells 11,332 Shares of Dropbox (NASDAQ:DBX) Stock

Key Points

• Dropbox CTO Ali Dasdan sold 11,332 shares at an average price of $34.13, generating $386,761. The sale, representing a 2.35% reduction in his holdings, was conducted under a pre-arranged Rule 10b5-1 plan to cover tax obligations from vested equity awards.
• Dropbox shares traded at approximately $33.99, near their 52-week high of $36.30, with a market capitalization of about $7.67 billion. The company recently exceeded quarterly earnings and revenue estimates, reporting $0.75 EPS and $631.5 million in revenue.
• Analyst sentiment remains cautious, with one Buy, four Hold and two Sell ratings; the consensus rating is “Reduce” and the average price target is $28.25. Institutional investors own 94.84% of Dropbox’s outstanding shares.

Dropbox, Inc. (NASDAQ:DBX - Get Free Report) CTO Ali Dasdan sold 11,332 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $34.13, for a total value of $386,761.16. Following the completion of the transaction, the chief technology officer owned 471,052 shares in the company, valued at approximately $16,077,004.76. The trade was a 2.35% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 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.

Dropbox Stock Performance

Dropbox stock traded up $0.12 during mid-day trading on Wednesday, reaching $33.99. The stock had a trading volume of 2,883,453 shares, compared to its average volume of 4,007,886. Dropbox, Inc. has a fifty-two week low of $21.69 and a fifty-two week high of $36.30. The stock's 50-day simple moving average is $30.00 and its 200-day simple moving average is $26.86. The firm has a market capitalization of $7.67 billion, a PE ratio of 18.88, a price-to-earnings-growth ratio of 4.70 and a beta of 0.64.

Dropbox (NASDAQ:DBX - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.75 earnings per share for the quarter, topping analysts' consensus estimates of $0.74 by $0.01. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%.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 prior year, the firm earned $0.71 earnings per share. Dropbox's revenue for the quarter was up .9% on a year-over-year basis. On average, research analysts forecast that Dropbox, Inc. will post 2.09 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Dropbox

A number of hedge funds have recently bought and sold shares of DBX. Palisade Asset Management LLC purchased a new stake in shares of Dropbox in the third quarter valued at about $30,000. Kestra Advisory Services LLC bought a new position in shares of Dropbox during the fourth quarter valued at about $31,000. Larson Financial Group LLC boosted its holdings in Dropbox by 228.0% during the fourth quarter. Larson Financial Group LLC now owns 1,138 shares of the company's stock worth $32,000 after purchasing an additional 791 shares during the last quarter. Geneos Wealth Management Inc. boosted its holdings in Dropbox by 78.0% during the second quarter. Geneos Wealth Management Inc. now owns 1,273 shares of the company's stock worth $36,000 after purchasing an additional 558 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd bought a new stake in Dropbox in the 4th quarter worth about $38,000. 94.84% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research firms have weighed in on DBX. Citigroup raised their price objective on shares of Dropbox from $28.00 to $33.00 and gave the company a "neutral" rating in a research note on Friday, August 7th. Wall Street Zen downgraded shares of Dropbox from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Weiss Ratings upgraded shares of Dropbox from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, August 13th. Bank of America reaffirmed an "underperform" rating on shares of Dropbox in a research report on Friday, August 7th. Finally, William Blair upgraded Dropbox from an "underperform" rating to a "market perform" rating in a research note on Friday, August 7th. One investment analyst has rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus price target of $28.25.

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.

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