Dropbox, Inc. (NASDAQ:DBX) Given Consensus Rating of "Reduce" by Brokerages

Key Points

• Analysts have a bearish-to-neutral view of Dropbox: Seven brokerages assign the stock an average “Reduce” rating, with two sells, four holds, and one buy. The average 12-month price target is $28.25, below the reported share price of $35.93.
• Dropbox slightly exceeded quarterly expectations, reporting $0.75 in earnings per share versus the $0.74 consensus estimate and revenue of $631.5 million versus $626.69 million expected. Revenue increased 0.9% year over year.
• Insiders have been selling shares: Executives and directors sold 85,225 shares worth approximately $2.37 million over the past 90 days, while institutional investors collectively own 94.84% of Dropbox.

Shares of Dropbox, Inc. (NASDAQ:DBX - Get Free Report) have been given an average recommendation of "Reduce" by the seven ratings firms that are currently covering the firm, Marketbeat reports. Two research analysts have rated the stock with a sell recommendation, four have given a hold recommendation and one has assigned a buy recommendation to the company. The average 1 year price objective among analysts that have issued ratings on the stock in the last year is $28.25.

DBX has been the subject of a number of recent analyst reports. Citigroup lifted their price target on Dropbox from $28.00 to $33.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. Weiss Ratings reiterated a "hold (c)" rating on shares of Dropbox in a report on Friday, July 31st. Wall Street Zen cut Dropbox from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Royal Bank Of Canada reiterated an "outperform" rating on shares of Dropbox in a research note on Monday, June 1st. Finally, William Blair raised shares of Dropbox from an "underperform" rating to a "market perform" rating in a report on Friday, August 7th.

Insiders Place Their Bets

In related news, Director Andrew William Moore sold 8,443 shares of the stock in a transaction on Monday, May 18th. The shares were sold at an average price of $27.57, for a total value of $232,773.51. Following the transaction, the director directly owned 4,737 shares of the company's stock, valued at $130,599.09. This trade represents a 64.06% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Houston sold 30,332 shares of Dropbox stock in a transaction on Monday, May 18th. The stock was sold at an average price of $27.50, for a total transaction of $834,130.00. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 85,225 shares of company stock worth $2,373,756. 35.48% of the stock is currently owned by company insiders.

Institutional Trading of Dropbox

Institutional investors and hedge funds have recently bought and sold shares of the business. WealthCollab LLC boosted its stake in Dropbox by 20.6% during the 4th quarter. WealthCollab LLC now owns 2,356 shares of the company's stock worth $65,000 after purchasing an additional 403 shares during the period. Parallel Advisors LLC boosted its stake in shares of Dropbox by 8.3% during the fourth quarter. Parallel Advisors LLC now owns 5,765 shares of the company's stock worth $160,000 after buying an additional 440 shares during the period. Lakewood Asset Management LLC boosted its stake in shares of Dropbox by 1.0% during the fourth quarter. Lakewood Asset Management LLC now owns 44,905 shares of the company's stock worth $1,248,000 after buying an additional 458 shares during the period. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Dropbox by 1.8% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 26,254 shares of the company's stock worth $730,000 after buying an additional 466 shares during the last quarter. Finally, Merit Financial Group LLC increased its position in Dropbox by 4.4% in the 3rd quarter. Merit Financial Group LLC now owns 11,385 shares of the company's stock valued at $344,000 after acquiring an additional 480 shares during the period. Hedge funds and other institutional investors own 94.84% of the company's stock.

Dropbox Stock Performance

Shares of DBX stock opened at $35.93 on Friday. The firm has a market cap of $8.38 billion, a P/E ratio of 19.96, a P/E/G ratio of 4.60 and a beta of 0.64. The firm's 50 day moving average price is $29.61 and its 200-day moving average price is $26.71. Dropbox has a one year low of $21.69 and a one year high of $35.97.

Dropbox (NASDAQ:DBX - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.75 earnings per share for the quarter, beating the consensus estimate of $0.74 by $0.01. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%.The company had revenue of $631.50 million during the quarter, compared to the consensus estimate of $626.69 million. During the same period in the previous year, the company posted $0.71 EPS. Dropbox's revenue was up .9% compared to the same quarter last year. As a group, research analysts predict that Dropbox will post 2.09 EPS for the current fiscal year.

About Dropbox

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source