Dropbox (NASDAQ:DBX) Given New $36.00 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan raised its Dropbox price target from $35 to $36 but maintained a neutral rating, implying about 3.9% upside from the share price cited.
• Analyst views remain mixed: MarketBeat reports a consensus “Reduce” rating and an average target of $35.60, while RBC upgraded its target to $48 and a buy-equivalent “outperform” rating.
• Dropbox beat quarterly estimates, reporting EPS of $0.88 versus $0.73 expected and revenue of $637.3 million versus $629.6 million expected; revenue increased 0.5% year over year.

Dropbox (NASDAQ:DBX - Get Free Report) had its price target lifted by research analysts at JPMorgan Chase & Co. from $35.00 to $36.00 in a report issued on Friday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s price objective would suggest a potential upside of 3.87% from the stock's current price.

A number of other equities research analysts have also commented on DBX. Royal Bank Of Canada raised their price objective on Dropbox from $42.00 to $48.00 and gave the stock an "outperform" rating in a research report on Friday. William Blair upgraded Dropbox from an "underperform" rating to a "market perform" rating in a report on Friday, August 7th. Citigroup lowered shares of Dropbox from a "neutral" rating to a "sell" rating and reduced their price target for the stock from $33.00 to $29.00 in a research report on Thursday, September 24th. Wall Street Zen raised shares of Dropbox from a "hold" rating to a "buy" rating in a research report on Saturday. Finally, Zacks Research upgraded shares of Dropbox from a "strong sell" rating to a "hold" rating in a report on Tuesday, October 6th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $35.60.

Dropbox Price Performance

Shares of NASDAQ:DBX opened at $34.66 on Friday. The company's fifty day moving average is $35.29 and its two-hundred day moving average is $29.25. Dropbox has a 12-month low of $21.69 and a 12-month high of $38.22. The company has a market cap of $7.82 billion, a P/E ratio of 18.74, a price-to-earnings-growth ratio of 2.84 and a beta of 0.61.

Dropbox (NASDAQ:DBX - Get Free Report) last released its earnings results on Thursday, November 5th. The company reported $0.88 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.73 by $0.15. The company 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 22.35% and a net margin of 17.17%. The company's revenue for the quarter was up .5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.74 earnings per share. Equities research analysts anticipate that Dropbox will post 2.33 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider William Yoon sold 12,382 shares of the 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 sale, the insider directly owned 366,693 shares in the company, valued at approximately $12,753,582.54. This trade represents a 3.27% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Houston sold 383,800 shares of Dropbox 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. 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. Insiders sold a total of 1,331,268 shares of company stock valued at $46,553,783 in the last three months. Company insiders own 35.48% of the company's stock.

Institutional Investors Weigh In On Dropbox

Several institutional investors have recently made changes to their positions in the company. Elevation Wealth Partners LLC increased its position in Dropbox by 63.0% during the third quarter. Elevation Wealth Partners LLC now owns 1,363 shares of the company's stock worth $46,000 after buying an additional 527 shares during the last quarter. EverSource Wealth Advisors LLC lifted its position in shares of Dropbox by 68.1% in the first quarter. EverSource Wealth Advisors LLC now owns 2,052 shares of the company's stock worth $47,000 after buying an additional 831 shares during the last quarter. Farther Finance Advisors LLC lifted its position in shares of Dropbox by 166.5% in the third quarter. Farther Finance Advisors LLC now owns 2,617 shares of the company's stock worth $89,000 after buying an additional 1,635 shares during the last quarter. Signaturefd LLC boosted its stake in shares of Dropbox by 103.4% during the 3rd quarter. Signaturefd LLC now owns 5,616 shares of the company's stock worth $190,000 after acquiring an additional 2,855 shares in the last quarter. Finally, Parallel Advisors LLC boosted its stake in shares of Dropbox by 49.8% during the 1st quarter. Parallel Advisors LLC now owns 8,634 shares of the company's stock worth $196,000 after acquiring an additional 2,869 shares in the last quarter. 94.84% of the stock is currently owned by institutional investors and hedge funds.

About Dropbox

Dropbox, Inc is a cloud software company that helps individuals and organizations store, access, sync and share files across devices. Its core Dropbox service also supports collaboration through shared folders, comments and tools for managing digital content.

The company offers products for a range of work and collaboration needs, including Dropbox Sign for electronic signatures and DocSend for sharing and tracking documents. Dropbox has also developed tools for reviewing creative content and organizing work, alongside integrations with other business applications.

Founded in 2007 by Drew Houston and Arash Ferdowsi, Dropbox serves customers around the world.

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