Dropbox (NASDAQ:DBX) Stock Price Target Raised at Royal Bank Of Canada

Key Points

• Royal Bank of Canada raised Dropbox’s price target from $42 to $48 and reiterated an “outperform” rating, implying 37.57% upside from the price cited in the report.
• Analyst opinions remain mixed: the consensus rating is “Reduce,” with an average price target of $33.40; recent ratings range from Buy to Sell.
• Dropbox beat quarterly earnings and revenue estimates, but revenue grew just 0.5% year over year. Shares fell 2.4% on Friday, closing at $34.89.

Dropbox (NASDAQ:DBX - Get Free Report) had its price target lifted by investment analysts at Royal Bank Of Canada from $42.00 to $48.00 in a report released on Friday, Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Royal Bank Of Canada's target price would suggest a potential upside of 37.57% from the stock's current price.

Other equities research analysts have also recently issued reports about the company. Citigroup cut 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 note on Thursday, September 24th. Wall Street Zen lowered Dropbox from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Stephens began coverage on shares of Dropbox in a report on Tuesday. They set an "equal weight" rating and a $39.00 target price on the stock. Weiss Ratings upgraded shares of Dropbox from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday. Finally, William Blair raised shares of Dropbox from an "underperform" rating to a "market perform" rating in a research report on Friday, August 7th. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus target price of $33.40.

Dropbox Trading Down 2.4%

Dropbox stock traded down $0.87 during trading hours on Friday, hitting $34.89. 1,916,705 shares of the stock traded hands, compared to its average volume of 3,935,125. The firm's 50-day moving average price is $35.31 and its two-hundred day moving average price is $29.20. The company has a market cap of $7.88 billion, a PE ratio of 19.37, a PEG ratio of 3.56 and a beta of 0.62. Dropbox has a one year low of $21.69 and a one year high of $38.22.

Dropbox (NASDAQ:DBX - Get Free Report) last posted its earnings results on Thursday, November 5th. The company reported $0.88 earnings per share for the quarter, topping analysts' consensus estimates of $0.73 by $0.15. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%. The firm had revenue of $637.30 million for the quarter, compared to the consensus estimate of $629.59 million. During the same quarter in the prior year, the business earned $0.74 EPS. The business's revenue for the quarter was up .5% on a year-over-year basis. On average, sell-side analysts expect that Dropbox will post 1.94 earnings per share for the current fiscal year.

Insider Activity at Dropbox

In other Dropbox news, CEO Ashraf Alkarmi sold 28,800 shares of Dropbox stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $35.54, for a total value of $1,023,552.00. Following the completion of the transaction, the chief executive officer directly owned 1,004,081 shares of the company's stock, valued at approximately $35,685,038.74. The trade was a 2.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Houston sold 383,800 shares of the company's stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $35.81, for a total transaction of $13,743,878.00. The disclosure for this sale is available in the SEC filing. 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 in the last ninety days. 35.48% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Dropbox

Several institutional investors and hedge funds have recently made changes to their positions in DBX. Elevation Wealth Partners LLC lifted its holdings in shares of Dropbox by 63.0% during the 3rd quarter. Elevation Wealth Partners LLC now owns 1,363 shares of the company's stock valued at $46,000 after buying an additional 527 shares during the period. EverSource Wealth Advisors LLC boosted its stake in shares of Dropbox by 68.1% in the 1st 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 grew its holdings 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 acquiring an additional 1,635 shares during the period. Signaturefd LLC grew its holdings in shares of Dropbox by 103.4% in the third quarter. Signaturefd LLC now owns 5,616 shares of the company's stock worth $190,000 after acquiring an additional 2,855 shares during the period. Finally, Ethic Inc. bought a new stake in shares of Dropbox in the third quarter worth $211,000. 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: Q3 adjusted EPS of $0.88 beat the $0.73 consensus, while revenue of $637.3 million exceeded the $629.6 million estimate. Dropbox also said revenue growth excluding FormSwift and non-GAAP operating margin were ahead of guidance. Q3 earnings and revenue results
• Positive Sentiment: Q4 revenue guidance of $630 million–$633 million is above analysts’ $628.4 million estimate, extending the earnings report’s positive surprise. FY 2026 revenue guidance of $2.5 billion is in line with consensus. Dropbox Q3 results and guidance
• Positive Sentiment: Dropbox plans to acquire Tigris Data for $350 million and launch DBX Agent Cloud, aiming to expand into AI infrastructure. The company also highlighted early use of AI features, including usage credits by more than 20% of teams adopting them—potential opportunities for future growth. Tigris acquisition and AI infrastructure plans
• Neutral Sentiment: Paying users increased to 18.2 million from 18.07 million a year earlier, but reported Q3 revenue grew only 0.5% year over year. The modest growth rate may temper enthusiasm about the earnings beat. Revenue and paying-user growth
• Negative Sentiment: The $350 million Tigris deal adds acquisition spending and integration risk as Dropbox pursues AI-related growth; investors will need to see the strategy translate into meaningful results. CEO Andrew Houston also sold 383,800 shares under a pre-arranged Rule 10b5-1 plan, a transaction that may draw attention but is not necessarily a fresh discretionary signal. CEO share sale details

Dropbox Company Profile

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.

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