Dropbox, Inc. (NASDAQ:DBX) Stock Has Consensus Target Price of $29.75

Key Points

• Analyst sentiment is bearish: Eight brokerages give Dropbox an average “Reduce” rating, with four sells, three holds and one buy. The average 12-month price target is $29.75, below the stock’s reported price of $33.90.
• Insiders have been selling shares: Executives sold 567,244 shares worth approximately $19.8 million over the past 90 days, including sales by the CEO and chief accounting officer under pre-arranged trading plans.
• Recent results modestly exceeded expectations: Dropbox reported quarterly EPS of $0.75 versus the $0.74 consensus estimate and revenue of $631.5 million, up 0.9% year over year. Institutional investors own 94.84% of the company’s stock.

Shares of Dropbox, Inc. (NASDAQ:DBX - Get Free Report) have earned an average rating of "Reduce" from the eight brokerages that are covering the firm, Marketbeat reports. Four research analysts have rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $29.75.

Several equities research analysts have recently commented on the company. Wall Street Zen lowered Dropbox from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $42.00 price objective on shares of Dropbox in a research note on Thursday, September 3rd. Citigroup cut Dropbox from a "neutral" rating to a "sell" rating and reduced their price objective for the stock from $33.00 to $29.00 in a report on Thursday, September 24th. Bank of America reiterated an "underperform" rating on shares of Dropbox in a research report on Friday, August 7th. Finally, Weiss Ratings raised Dropbox from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, August 13th.

Insiders Place Their Bets

In other Dropbox news, CAO Sarah Schubach sold 2,025 shares of Dropbox stock in a transaction dated Wednesday, September 30th. The shares were sold at an average price of $32.54, for a total transaction of $65,893.50. Following the completion of the transaction, the chief accounting officer owned 132,809 shares in the company, valued at approximately $4,321,604.86. The trade was a 1.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible 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 dated Friday, September 11th. The shares were sold at an average price of $35.54, for a total transaction of $1,023,552.00. Following the completion of the sale, the chief executive officer directly owned 1,004,081 shares in the company, valued at $35,685,038.74. This trade represents a 2.79% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 567,244 shares of company stock worth $19,827,011. 35.48% of the stock is owned by company insiders.

Institutional Investors Weigh In On Dropbox

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC boosted its stake in shares of Dropbox by 68.1% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,052 shares of the company's stock worth $47,000 after purchasing an additional 831 shares during the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in shares of Dropbox in the fourth quarter valued at approximately $103,000. Eurizon Capital SGR S.p.A. acquired a new position in shares of Dropbox in the fourth quarter valued at approximately $119,000. Parallel Advisors LLC lifted its stake in shares of Dropbox by 49.8% during the first quarter. Parallel Advisors LLC now owns 8,634 shares of the company's stock valued at $196,000 after buying an additional 2,869 shares during the period. Finally, Baird Financial Group Inc. purchased a new position in shares of Dropbox during the second quarter valued at approximately $209,000. Hedge funds and other institutional investors own 94.84% of the company's stock.

Dropbox Stock Performance

NASDAQ:DBX opened at $33.90 on Friday. Dropbox has a 1 year low of $21.69 and a 1 year high of $38.17. The stock has a fifty day moving average price of $34.43 and a two-hundred day moving average price of $29.06. The stock has a market capitalization of $7.65 billion, a price-to-earnings ratio of 18.83, a PEG ratio of 5.02 and a beta of 0.63.

Dropbox (NASDAQ:DBX - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.75 EPS for the quarter, topping the consensus estimate of $0.74 by $0.01. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. 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 previous year, the firm earned $0.71 EPS. The business's revenue was up .9% on a year-over-year basis. On average, analysts predict that Dropbox will post 1.94 EPS for the current year.

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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