Dropbox, Inc. (NASDAQ:DBX) Receives Consensus Rating of "Reduce" from Analysts

Key Points

• Consensus "Reduce": Six analysts covering Dropbox have a consensus rating of "Reduce" (2 sell, 3 hold, 1 buy) with an average 1‑year price target of $27.50 and several recent target cuts (e.g., JPMorgan to $25, UBS to $23).
• Significant insider selling: CEO Andrew Houston sold 164,502 shares and company insiders sold 435,592 shares (~$10.8M) over the past 90 days, though insiders still own about 29.95% of the stock.
• Mixed fundamentals and stock position: Dropbox beat quarterly EPS ($0.68 vs. $0.66) and revenue topped estimates at $636.2M but revenue was down 1.1% YoY; the shares trade around $22 with a $5.32B market cap and a 52‑week range of $21.69–$32.40.

Shares of Dropbox, Inc. (NASDAQ:DBX - Get Free Report) have been given a consensus recommendation of "Reduce" by the six ratings firms that are covering the stock, 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 issued a report on the stock in the last year is $27.50.

A number of equities research analysts have recently commented on the stock. JPMorgan Chase & Co. reduced their target price on shares of Dropbox from $29.00 to $25.00 and set a "neutral" rating for the company in a report on Friday, February 20th. Royal Bank Of Canada reduced their target price on shares of Dropbox from $35.00 to $30.00 and set an "outperform" rating for the company in a report on Friday, February 20th. Wall Street Zen cut shares of Dropbox from a "buy" rating to a "hold" rating in a report on Friday, January 23rd. Weiss Ratings reissued a "hold (c+)" rating on shares of Dropbox in a report on Wednesday, January 21st. Finally, UBS Group cut their price target on shares of Dropbox from $27.00 to $23.00 and set a "sell" rating for the company in a report on Friday, February 20th.

Insider Activity

In related news, CAO Sarah Elizabeth Schubach sold 1,416 shares of the stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $24.49, for a total transaction of $34,677.84. Following the completion of the transaction, the chief accounting officer directly owned 86,319 shares of the company's stock, valued at $2,113,952.31. This represents a 1.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Andrew Houston sold 164,502 shares of the stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $25.66, for a total transaction of $4,221,121.32. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 435,592 shares of company stock valued at $10,827,457. Company insiders own 29.95% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in DBX. LSV Asset Management increased its holdings in Dropbox by 38.1% in the third quarter. LSV Asset Management now owns 11,613,642 shares of the company's stock valued at $350,848,000 after buying an additional 3,205,140 shares in the last quarter. Intech Investment Management LLC increased its holdings in Dropbox by 117.3% in the third quarter. Intech Investment Management LLC now owns 407,958 shares of the company's stock valued at $12,324,000 after buying an additional 220,176 shares in the last quarter. WINTON GROUP Ltd purchased a new position in Dropbox in the third quarter valued at about $4,497,000. BOKF NA increased its holdings in Dropbox by 48.8% in the third quarter. BOKF NA now owns 163,896 shares of the company's stock valued at $4,951,000 after buying an additional 53,741 shares in the last quarter. Finally, Kestra Investment Management LLC purchased a new position in Dropbox in the second quarter valued at about $682,000. 94.84% of the stock is owned by hedge funds and other institutional investors.

Dropbox Stock Performance

Shares of NASDAQ:DBX opened at $22.06 on Friday. The company has a 50-day simple moving average of $24.55 and a 200-day simple moving average of $27.22. Dropbox has a one year low of $21.69 and a one year high of $32.40. The stock has a market capitalization of $5.32 billion, a price-to-earnings ratio of 11.86, a PEG ratio of 1.57 and a beta of 0.61.

Dropbox (NASDAQ:DBX - Get Free Report) last announced its earnings results on Thursday, February 19th. The company reported $0.68 EPS for the quarter, beating analysts' consensus estimates of $0.66 by $0.02. Dropbox had a net margin of 20.17% and a negative return on equity of 37.47%. The business had revenue of $636.20 million during the quarter, compared to analysts' expectations of $627.83 million. During the same period in the prior year, the company earned $0.73 earnings per share. The business's revenue was down 1.1% compared to the same quarter last year. As a group, research analysts forecast that Dropbox will post 1.64 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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