Dropbox, Inc. (NASDAQ:DBX) Given Consensus Recommendation of "Reduce" by Analysts

Key Points

• Dropbox has an average analyst rating of "Reduce" from six brokerages, with a consensus 12-month price target of $27.00. Recent analyst actions were mixed, including a downgrade by Wall Street Zen and a neutral call from Citigroup.
• The company recently reported better-than-expected quarterly results, posting EPS of $0.76 versus the $0.71 consensus and revenue of $629.5 million versus $620.56 million expected. Revenue rose 0.8% year over year.
• Insider selling has been notable, with CAO Sarah Elizabeth Schubach and CTO Ali Dasdan both selling shares under pre-arranged trading plans; insiders have sold 239,774 shares worth about $6.0 million over the last 90 days.

Shares of Dropbox, Inc. (NASDAQ:DBX - Get Free Report) have earned an average rating of "Reduce" from the six brokerages that are presently covering the firm, MarketBeat Ratings reports. Two analysts have rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $27.00.

A number of analysts recently issued reports on DBX shares. Wall Street Zen lowered Dropbox from a "buy" rating to a "hold" rating in a report on Saturday, June 20th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Dropbox in a research report on Monday, May 4th. William Blair reissued an "underperform" rating on shares of Dropbox in a research report on Monday, March 23rd. Citigroup raised their price target on Dropbox from $27.00 to $28.00 and gave the company a "neutral" rating in a research note on Monday, May 11th. Finally, Royal Bank Of Canada restated an "outperform" rating on shares of Dropbox in a report on Monday, June 1st.

Insiders Place Their Bets

In related news, CAO Sarah Elizabeth Schubach sold 1,306 shares of Dropbox stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $26.90, for a total transaction of $35,131.40. Following the transaction, the chief accounting officer directly owned 128,509 shares of the company's stock, valued at $3,456,892.10. This trade represents a 1.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Ali Dasdan sold 5,666 shares of the business's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $27.56, for a total transaction of $156,154.96. Following the completion of the transaction, the chief technology officer directly owned 514,611 shares of the company's stock, valued at $14,182,679.16. This trade represents a 1.09% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 239,774 shares of company stock worth $6,005,653. 35.48% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in DBX. Redwood Investment Management LLC lifted its stake in shares of Dropbox by 15.1% during the 1st quarter. Redwood Investment Management LLC now owns 45,701 shares of the company's stock worth $1,038,000 after purchasing an additional 6,009 shares during the last quarter. Pacer Advisors Inc. grew its stake in Dropbox by 2.8% in the first quarter. Pacer Advisors Inc. now owns 2,047,966 shares of the company's stock valued at $46,530,000 after purchasing an additional 55,921 shares during the last quarter. Parallel Advisors LLC raised its holdings in Dropbox by 49.8% in the first quarter. Parallel Advisors LLC now owns 8,634 shares of the company's stock worth $196,000 after purchasing an additional 2,869 shares in the last quarter. NewEdge Advisors LLC raised its holdings in Dropbox by 1,879.3% in the first quarter. NewEdge Advisors LLC now owns 16,468 shares of the company's stock worth $374,000 after purchasing an additional 15,636 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its position in shares of Dropbox by 68.1% during the first quarter. EverSource Wealth Advisors LLC now owns 2,052 shares of the company's stock valued at $47,000 after buying an additional 831 shares during the last quarter. 94.84% of the stock is currently owned by hedge funds and other institutional investors.

Dropbox Trading Down 0.8%

Shares of DBX opened at $26.35 on Thursday. The firm has a fifty day moving average price of $26.13 and a 200-day moving average price of $25.91. The firm has a market capitalization of $6.15 billion, a P/E ratio of 14.40, a P/E/G ratio of 2.91 and a beta of 0.67. Dropbox has a 12-month low of $21.69 and a 12-month high of $32.40.

Dropbox (NASDAQ:DBX - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.76 EPS for the quarter, topping the consensus estimate of $0.71 by $0.05. The company had revenue of $629.50 million for the quarter, compared to the consensus estimate of $620.56 million. Dropbox had a net margin of 18.71% and a negative return on equity of 30.01%. The firm's revenue was up .8% compared to the same quarter last year. During the same quarter last year, the firm posted $0.70 EPS. Analysts predict that Dropbox will post 2.09 earnings per share for the current 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.

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