UBS Group Downgrades Dropbox (NASDAQ:DBX) to Sell

Key Points

• UBS Group has reiterated a "sell" rating for Dropbox (NASDAQ:DBX), reducing its price target from $29.00 to $27.00, indicating a potential downside of 14.77% from the previous close.
• Wall Street Zen has downgraded Dropbox from a "buy" to a "hold" rating, contributing to a consensus rating of "Reduce" among analysts, with an average target price of $29.67.
• Dropbox's stock recently saw a 1.5% decline in value, despite reporting earnings of $0.71 per share for the last quarter, exceeding analysts' expectations and generating a net revenue of $625.70 million.

Dropbox (NASDAQ:DBX - Get Free Report) was downgraded by UBS Group from a "neutral" rating to a "sell" rating in a research report issued on Thursday, MarketBeat.com reports. They presently have a $27.00 price objective on the stock, down from their previous price objective of $29.00. UBS Group's target price indicates a potential downside of 12.29% from the company's previous close.

Separately, Wall Street Zen downgraded Dropbox from a "buy" rating to a "hold" rating in a report on Friday, September 5th. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $29.67.

Dropbox Trading Up 0.6%

Shares of NASDAQ DBX traded up $0.18 during mid-day trading on Thursday, hitting $30.79. The company had a trading volume of 1,008,736 shares, compared to its average volume of 3,744,813. Dropbox has a 1 year low of $24.42 and a 1 year high of $33.33. The company has a market capitalization of $8.31 billion, a price-to-earnings ratio of 18.81, a P/E/G ratio of 4.05 and a beta of 0.70. The stock's 50-day moving average price is $28.46 and its 200-day moving average price is $28.04.

Dropbox (NASDAQ:DBX - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported $0.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.63 by $0.08. The firm had revenue of $625.70 million during the quarter, compared to analyst estimates of $618.60 million. Dropbox had a negative return on equity of 61.31% and a net margin of 19.17%.The company's revenue was down 1.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.60 earnings per share. As a group, equities research analysts forecast that Dropbox will post 1.64 earnings per share for the current year.

Insider Buying and Selling

In other news, insider William T. Yoon sold 11,430 shares of the business's stock in a transaction dated Monday, September 8th. The shares were sold at an average price of $30.16, for a total value of $344,728.80. Following the completion of the sale, the insider owned 223,662 shares of the company's stock, valued at approximately $6,745,645.92. The trade was a 4.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Timothy Regan sold 10,000 shares of the stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $27.94, for a total transaction of $279,400.00. Following the completion of the transaction, the chief financial officer owned 516,094 shares of the company's stock, valued at $14,419,666.36. This trade represents a 1.90% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 314,333 shares of company stock worth $8,938,399. 29.95% of the stock is currently owned by insiders.

Institutional Trading of Dropbox

Several large investors have recently added to or reduced their stakes in the business. SG Americas Securities LLC acquired a new stake in Dropbox during the first quarter worth about $647,000. Rehmann Capital Advisory Group acquired a new stake in Dropbox in the 1st quarter worth about $675,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Dropbox by 8.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,761,252 shares of the company's stock valued at $52,908,000 after buying an additional 137,916 shares during the period. Acadian Asset Management LLC increased its position in shares of Dropbox by 1.9% during the first quarter. Acadian Asset Management LLC now owns 8,544,978 shares of the company's stock worth $228,202,000 after buying an additional 157,148 shares during the period. Finally, UniSuper Management Pty Ltd acquired a new position in shares of Dropbox during the 1st quarter valued at $2,027,000. 94.84% of the stock is owned by institutional investors.

Dropbox Company Profile

Dropbox, Inc provides a content collaboration platform worldwide. The company's platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. It serves customers in professional services, technology, media, education, industrial, consumer and retail, and financial services industries.