Dropbox, Inc. (NASDAQ:DBX) Receives Average Recommendation of "Reduce" from Brokerages

Key Points

• Wall Street sentiment is cautious: Dropbox has an average analyst rating of "Reduce" from six covered analysts, with two sell ratings, three hold ratings, and one buy rating. The average 1-year price target is $27.00.
• Insiders have been selling shares: CEO Andrew Houston and Director Andrew William Moore both sold stock in May, and insiders sold 129,082 shares worth about $3.49 million over the last 90 days.
• Recent results beat expectations: Dropbox reported $0.76 EPS on revenue of $629.5 million, topping estimates, and revenue rose 0.8% year over year. Despite the beat, analysts still expect full-year EPS of 2.09.

Shares of Dropbox, Inc. (NASDAQ:DBX - Get Free Report) have been assigned an average rating of "Reduce" from the six analysts that are presently covering the company, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating and one has assigned a buy rating to the company. The average 1-year price target among analysts that have covered the stock in the last year is $27.00.

Several research analysts recently commented on the stock. William Blair reaffirmed an "underperform" rating on shares of Dropbox in a report on Monday, March 23rd. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Dropbox in a report on Monday, June 1st. Weiss Ratings reiterated a "hold (c)" rating on shares of Dropbox in a research report on Monday, May 4th. Wall Street Zen upgraded Dropbox from a "hold" rating to a "buy" rating in a research note on Sunday, June 28th. Finally, Citigroup raised their target price on Dropbox from $27.00 to $28.00 and gave the stock a "neutral" rating in a research note on Monday, May 11th.

Insider Activity

In other news, CEO Andrew Houston sold 30,332 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $27.50, for a total value of $834,130.00. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Andrew William Moore sold 8,443 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $27.57, for a total transaction of $232,773.51. Following the completion of the transaction, the director owned 4,737 shares of the company's stock, valued at $130,599.09. This trade represents a 64.06% decrease in their ownership of the stock. 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 90 days, insiders sold 129,082 shares of company stock valued at $3,489,910. 35.48% of the stock is currently owned by insiders.

Institutional Trading of Dropbox

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

Dropbox Price Performance

NASDAQ DBX opened at $30.62 on Monday. The company has a market cap of $7.14 billion, a PE ratio of 16.73, a price-to-earnings-growth ratio of 3.35 and a beta of 0.66. Dropbox has a 52 week low of $21.69 and a 52 week high of $32.40. The firm's 50-day simple moving average is $27.55 and its two-hundred day simple moving average is $25.95.

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