Dropbox (NASDAQ:DBX) CEO Andrew Houston Sells 30,332 Shares

Key Points

• CEO Andrew Houston sold 30,332 Dropbox shares on May 18 at an average price of $27.50, totaling about $834,130. The sale was made under a pre-arranged 10b5-1 trading plan.
• Dropbox also reported a series of recent insider sales, including additional transactions by Houston in the prior weeks. These sales were disclosed as part of planned trading activity and equity-related withholding, which reduces the likelihood they signal a negative outlook.
• Dropbox beat quarterly expectations, posting EPS of $0.76 versus $0.71 expected and revenue of $629.5 million above estimates. The stock was also recently upgraded by Wall Street Zen to buy, while RBC raised its price target to $32.

Dropbox, Inc. (NASDAQ:DBX - Get Free Report) CEO Andrew Houston sold 30,332 shares of the company's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $27.50, for a total value of $834,130.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Andrew Houston also recently made the following trade(s):

• On Thursday, May 14th, Andrew Houston sold 37,498 shares of Dropbox stock. The stock was sold at an average price of $25.96, for a total value of $973,448.08.
• On Wednesday, April 1st, Andrew Houston sold 111,166 shares of Dropbox stock. The stock was sold at an average price of $22.89, for a total value of $2,544,589.74.
• On Monday, March 2nd, Andrew Houston sold 109,498 shares of Dropbox stock. The stock was sold at an average price of $24.94, for a total value of $2,730,880.12.

Dropbox Stock Up 0.1%

NASDAQ:DBX traded up $0.03 during trading hours on Wednesday, reaching $27.56. 2,816,208 shares of the stock were exchanged, compared to its average volume of 3,982,070. The business has a 50-day moving average of $24.57 and a two-hundred day moving average of $26.40. Dropbox, Inc. has a twelve month low of $21.69 and a twelve month high of $32.40. The company has a market capitalization of $6.43 billion, a price-to-earnings ratio of 15.06, a PEG ratio of 3.15 and a beta of 0.64.

Dropbox (NASDAQ:DBX - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.76 EPS for the quarter, topping analysts' consensus estimates of $0.71 by $0.05. The company had revenue of $629.50 million for the quarter, compared to analysts' expectations of $620.56 million. Dropbox had a negative return on equity of 30.01% and a net margin of 18.71%.The firm's revenue was up .8% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.70 earnings per share. On average, research analysts forecast that Dropbox, Inc. will post 2.03 EPS for the current fiscal year.

Dropbox News Summary

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Dropbox’s recent quarterly results topped expectations, with EPS of $0.76 versus $0.71 expected and revenue of $629.5 million above estimates, reinforcing the company’s profitability and steady execution. In addition, Wall Street Zen upgraded the stock to buy and RBC lifted its price target to $32, which may be helping sentiment. Article Title
• Neutral Sentiment: Dropbox was highlighted by Zacks as a strong value stock, reflecting its relatively low valuation metrics and appeal to investors looking for a cheaper software name. Article Title
• Neutral Sentiment: Several insiders, including the CEO, CTO, CAO, and two directors, recently sold shares, but the trades were made under pre-arranged 10b5-1 plans and in some cases were tied to tax withholding on vested equity awards, which makes them less likely to signal a negative fundamental view. Article Title

Hedge Funds Weigh In On Dropbox

A number of hedge funds and other institutional investors have recently made changes to their positions in DBX. EverSource Wealth Advisors LLC grew its holdings 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 worth $47,000 after buying an additional 831 shares during the last quarter. California State Teachers Retirement System grew its holdings in shares of Dropbox by 18.4% during the first quarter. California State Teachers Retirement System now owns 206,493 shares of the company's stock worth $4,692,000 after buying an additional 32,041 shares during the last quarter. Empowered Funds LLC grew its holdings in shares of Dropbox by 12.9% during the first quarter. Empowered Funds LLC now owns 116,220 shares of the company's stock worth $2,641,000 after buying an additional 13,244 shares during the last quarter. Lombard Odier Asset Management USA Corp purchased a new position in shares of Dropbox during the first quarter worth about $266,000. Finally, Arrowstreet Capital Limited Partnership grew its holdings in shares of Dropbox by 12.7% during the first quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company's stock worth $193,886,000 after buying an additional 960,109 shares during the last quarter. Hedge funds and other institutional investors own 94.84% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on DBX shares. Wall Street Zen upgraded Dropbox from a "hold" rating to a "buy" rating in a research note on Saturday. Weiss Ratings reiterated a "hold (c)" rating on shares of Dropbox in a research note on Monday, May 4th. William Blair reiterated an "underperform" rating on shares of Dropbox in a research note on Monday, March 23rd. Royal Bank Of Canada increased their price objective on Dropbox from $30.00 to $32.00 and gave the company an "outperform" rating in a research note on Friday, May 8th. Finally, UBS Group reduced their price objective on Dropbox from $27.00 to $23.00 and set a "sell" rating on the stock in a research note on Friday, February 20th. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Reduce" and an average target price of $27.00.

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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