Dropbox (NASDAQ:DBX) Upgraded to Hold at Zacks Research

Key Points

• Zacks Research upgraded Dropbox from “strong sell” to “hold,” though overall analyst sentiment remains cautious, with an average “Reduce” rating and a $29.75 target price.
• Dropbox reported quarterly EPS of $0.75, slightly beating estimates, while revenue of $631.5 million also exceeded forecasts and rose 0.9% year over year.
• The stock opened at $33.08 and was down 1.9%; insiders sold roughly 919,544 shares worth $31.8 million over the past 90 days, while institutional investors own 94.84% of the company.

Dropbox (NASDAQ:DBX - Get Free Report) was upgraded by research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued on Tuesday, Zacks reports.

Several other equities research analysts have also recently commented on the company. Bank of America restated an "underperform" rating on shares of Dropbox in a research note on Friday, August 7th. Weiss Ratings raised shares of Dropbox from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, August 13th. Wall Street Zen downgraded shares of Dropbox from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Royal Bank Of Canada reissued an "outperform" rating and issued a $42.00 price objective on shares of Dropbox in a research report on Thursday, September 3rd. Finally, William Blair upgraded shares of Dropbox from an "underperform" rating to a "market perform" rating in a report on Friday, August 7th. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, Dropbox currently has an average rating of "Reduce" and an average target price of $29.75.

Dropbox Trading Down 1.9%

DBX stock opened at $33.08 on Tuesday. The stock has a 50-day moving average price of $34.54 and a two-hundred day moving average price of $29.27. Dropbox has a 1 year low of $21.69 and a 1 year high of $38.17. The stock has a market cap of $7.47 billion, a PE ratio of 18.38, a price-to-earnings-growth ratio of 4.97 and a beta of 0.63.

Dropbox (NASDAQ:DBX - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.75 EPS for the quarter, beating analysts' consensus estimates of $0.74 by $0.01. The company had revenue of $631.50 million for the quarter, compared to analyst estimates of $626.69 million. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%.The company's quarterly revenue was up .9% compared to the same quarter last year. During the same period in the previous year, the company posted $0.71 earnings per share. On average, analysts forecast that Dropbox will post 1.94 earnings per share for the current fiscal year.

Insider Transactions at Dropbox

In other Dropbox news, CFO Ross Tennenbaum sold 97,558 shares of the business's stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $35.02, for a total transaction of $3,416,481.16. Following the transaction, the chief financial officer owned 690,666 shares of the company's stock, valued at $24,187,123.32. The trade was a 12.38% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ashraf Alkarmi sold 28,800 shares of the company's stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $35.54, for a total value of $1,023,552.00. Following the sale, the chief executive officer owned 1,004,081 shares in the company, valued at approximately $35,685,038.74. This represents a 2.79% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 919,544 shares of company stock valued at $31,818,754. 35.48% of the stock is owned by insiders.

Institutional Trading of Dropbox

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Arrowstreet Capital Limited Partnership increased its stake in shares of Dropbox by 12.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company's stock worth $193,886,000 after purchasing an additional 960,109 shares during the last quarter. Wedge Capital Management L L P NC lifted its stake in Dropbox by 26.4% in 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 purchasing an additional 627,111 shares during the last quarter. Allianz Asset Management GmbH lifted its stake in Dropbox by 28.1% in the 4th quarter. Allianz Asset Management GmbH now owns 2,720,372 shares of the company's stock valued at $75,626,000 after purchasing an additional 596,440 shares during the last quarter. Pacer Advisors Inc. grew its holdings in Dropbox by 2.8% during the first quarter. Pacer Advisors Inc. now owns 2,047,966 shares of the company's stock worth $46,530,000 after purchasing an additional 55,921 shares during the period. Finally, KBC Group NV grew its holdings in Dropbox by 12.6% during the first quarter. KBC Group NV now owns 944,829 shares of the company's stock worth $21,466,000 after purchasing an additional 105,876 shares during the period. 94.84% of the stock is owned by institutional investors.

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 files across devices, synchronize content and manage collaboration through web, desktop and mobile applications.

The company's product portfolio includes Dropbox for cloud storage and file collaboration, Dropbox Sign for electronic signatures and document workflows, and DocSend for securely sharing and tracking business documents.

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