Dropbox, Inc. (NASDAQ:DBX) Given Average Recommendation of "Reduce" by Brokerages

Key Points

• Analyst consensus: Six analysts give Dropbox an average "Reduce" rating (2 sell, 3 hold, 1 buy) with a 12‑month average price target of $27.50 and recent price-target cuts from UBS and JPMorgan.
• Insider selling vs. institutional ownership: Insiders sold 247,519 shares worth about $5.95M over the last 90 days (insiders still own 35.48%), while institutional investors hold 94.84% of the stock with several funds recently increasing positions.
• Recent results and stock metrics: In the most recent quarter Dropbox reported $0.68 EPS (beat $0.66) and $636.2M revenue (beat consensus but down 1.1% YoY); market cap is ~$6.13B, PE 13.66, and 12‑month range $21.69–$32.40.

Dropbox, Inc. (NASDAQ:DBX - Get Free Report) has been assigned an average rating of "Reduce" from the six analysts that are covering the company, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, three have given a hold recommendation and one has given a buy recommendation to the company. The average 12-month price target among brokerages that have covered the stock in the last year is $27.50.

Several equities research analysts have recently commented on the company. UBS Group cut their price objective on Dropbox from $27.00 to $23.00 and set a "sell" rating for the company in a report on Friday, February 20th. William Blair reissued an "underperform" rating on shares of Dropbox in a report on Monday, March 23rd. Weiss Ratings reissued a "hold (c+)" rating on shares of Dropbox in a report on Wednesday, January 21st. Wall Street Zen downgraded Dropbox from a "buy" rating to a "hold" rating in a report on Friday, January 23rd. Finally, JPMorgan Chase & Co. cut their price target on Dropbox from $29.00 to $25.00 and set a "neutral" rating for the company in a report on Friday, February 20th.

Insiders Place Their Bets

In other Dropbox news, CTO Ali Dasdan sold 7,306 shares of the firm's stock in a transaction on Thursday, February 26th. The stock was sold at an average price of $24.89, for a total transaction of $181,846.34. Following the completion of the sale, the chief technology officer owned 499,379 shares of the company's stock, valued at $12,429,543.31. This trade represents a 1.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Ashraf Alkarmi sold 12,472 shares of the firm's stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $26.00, for a total value of $324,272.00. Following the sale, the insider directly owned 414,661 shares of the company's stock, valued at $10,781,186. This represents a 2.92% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 247,519 shares of company stock worth $5,952,284. Company insiders own 35.48% of the company's stock.

Institutional Investors Weigh In On Dropbox

Several hedge funds have recently added to or reduced their stakes in DBX. LSV Asset Management lifted its holdings in Dropbox by 38.1% during the 3rd quarter. LSV Asset Management now owns 11,613,642 shares of the company's stock valued at $350,848,000 after purchasing an additional 3,205,140 shares during the last quarter. Norges Bank acquired a new stake in Dropbox during the 4th quarter valued at $69,909,000. Arbejdsmarkedets Tillaegspension acquired a new stake in Dropbox during the 4th quarter valued at $22,050,000. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Dropbox by 11.3% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 7,573,627 shares of the company's stock worth $210,547,000 after buying an additional 767,119 shares in the last quarter. Finally, Allianz Asset Management GmbH lifted its holdings in shares of Dropbox by 47.8% during the third quarter. Allianz Asset Management GmbH now owns 2,123,932 shares of the company's stock worth $64,164,000 after buying an additional 686,577 shares in the last quarter. Institutional investors and hedge funds own 94.84% of the company's stock.

Dropbox Trading Up 1.3%

NASDAQ DBX opened at $25.41 on Wednesday. The company has a market cap of $6.13 billion, a PE ratio of 13.66, a PEG ratio of 1.77 and a beta of 0.64. Dropbox has a 12 month low of $21.69 and a 12 month high of $32.40. The stock has a 50 day moving average of $24.32 and a 200-day moving average of $26.58.

Dropbox (NASDAQ:DBX - Get Free Report) last released its quarterly earnings data on Thursday, February 19th. The company reported $0.68 EPS for the quarter, beating the consensus estimate of $0.66 by $0.02. The company had revenue of $636.20 million during the quarter, compared to the consensus estimate of $627.83 million. Dropbox had a negative return on equity of 37.47% and a net margin of 20.17%.The firm's revenue for the quarter was down 1.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.73 EPS. As a group, sell-side analysts predict that Dropbox will post 2.03 EPS for the current fiscal year.

Dropbox Company Profile

Dropbox, Inc NASDAQ: DBX is a leading provider of cloud-based file storage, collaboration, and productivity tools. Founded in 2007 and headquartered in San Francisco, California, the company offers a suite of services designed to help individuals and organizations securely store, share, and manage digital content. Dropbox has grown from a simple file-syncing application into an integrated collaboration platform used by millions of customers around the globe.

At its core, Dropbox provides cloud storage plans tailored for consumers and businesses.

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