BOX (NYSE:BOX) Shares Gap Up on Strong Earnings

Key Points

• Box, Inc. (NYSE:BOX) shares opened at $33.73 following a better-than-expected earnings report, with EPS of $0.33 exceeding the $0.31 consensus estimate.
• The company reported quarterly revenue of $294 million, surpassing analysts' expectations of $290.19 million, marking an 8.9% year-over-year increase.
• Wall Street analysts have mixed ratings for BOX, with an average price target of $39, while eight analysts rate the stock as a "Buy."

Box, Inc. (NYSE:BOX - Get Free Report)'s share price gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $31.16, but opened at $33.73. BOX shares last traded at $31.69, with a volume of 1,551,687 shares traded.

The software maker reported $0.33 EPS for the quarter, topping the consensus estimate of $0.31 by $0.02. The business had revenue of $294.00 million for the quarter, compared to the consensus estimate of $290.19 million. BOX had a negative return on equity of 21.77% and a net margin of 20.30%.BOX's revenue was up 8.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.44 EPS. BOX has set its FY 2026 guidance at 1.260-1.28 EPS. Q3 2026 guidance at 0.310-0.32 EPS.

Analysts Set New Price Targets

BOX has been the topic of several recent analyst reports. Morgan Stanley reissued a "positive" rating on shares of BOX in a report on Wednesday, May 28th. Royal Bank Of Canada boosted their target price on BOX from $24.00 to $26.00 and gave the stock an "underperform" rating in a report on Wednesday, August 27th. Wall Street Zen downgraded BOX from a "buy" rating to a "hold" rating in a report on Sunday, June 29th. JPMorgan Chase & Co. boosted their target price on BOX from $37.00 to $39.00 and gave the stock an "overweight" rating in a report on Wednesday, May 28th. Finally, UBS Group boosted their target price on BOX from $40.00 to $42.00 and gave the stock a "buy" rating in a report on Wednesday, August 27th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $39.00.

Insider Activity

In other BOX news, Director Dana L. Evan sold 7,590 shares of the company's stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $33.51, for a total transaction of $254,340.90. Following the transaction, the director owned 115,725 shares of the company's stock, valued at approximately $3,877,944.75. This represents a 6.15% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Bethany Mayer sold 5,123 shares of the company's stock in a transaction on Monday, June 30th. The stock was sold at an average price of $34.06, for a total value of $174,489.38. Following the transaction, the director directly owned 15,284 shares in the company, valued at approximately $520,573.04. This represents a 25.10% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 51,081 shares of company stock worth $1,762,323. 3.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Thrivent Financial for Lutherans lifted its stake in shares of BOX by 0.9% in the 2nd quarter. Thrivent Financial for Lutherans now owns 106,482 shares of the software maker's stock valued at $3,638,000 after purchasing an additional 929 shares during the period. Neuberger Berman Group LLC lifted its stake in shares of BOX by 38.1% in the 2nd quarter. Neuberger Berman Group LLC now owns 955,286 shares of the software maker's stock valued at $32,637,000 after purchasing an additional 263,619 shares during the period. State of Wyoming lifted its stake in shares of BOX by 68.9% in the 2nd quarter. State of Wyoming now owns 9,942 shares of the software maker's stock valued at $340,000 after purchasing an additional 4,054 shares during the period. Geneos Wealth Management Inc. lifted its stake in shares of BOX by 79.2% in the 2nd quarter. Geneos Wealth Management Inc. now owns 1,810 shares of the software maker's stock valued at $62,000 after purchasing an additional 800 shares during the period. Finally, Public Sector Pension Investment Board lifted its stake in shares of BOX by 6.4% in the 2nd quarter. Public Sector Pension Investment Board now owns 552,049 shares of the software maker's stock valued at $18,864,000 after purchasing an additional 32,970 shares during the period. Institutional investors and hedge funds own 86.74% of the company's stock.

BOX Trading Down 0.7%

The stock has a 50 day moving average price of $32.54 and a two-hundred day moving average price of $32.46. The company has a market cap of $4.69 billion, a price-to-earnings ratio of 26.28 and a beta of 0.95.

About BOX

Box, Inc engages in the provision of an enterprise content platform that enables organizations to securely manage enterprise content while allowing easy, secure access and sharing of this content from anywhere, on any device. Its products include cloud content management, IT and admin controls, Box Governance, Box Zones, Box Relay, Box Shuttle, and Box KeySafe.