Dropbox (NASDAQ:DBX) Reaches New 1-Year Low - Time to Sell?

Key Points

• Dropbox hit a new 52-week low, trading as low as $21.94 (last $22.15) on Thursday with about 453,629 shares changing hands.
• Analysts have cut targets and sentiment weakened: several firms trimmed price targets (JPMorgan, RBC, UBS) and MarketBeat shows a consensus rating of "Reduce" with an average target of $27.50 (1 Buy, 3 Hold, 2 Sell).
• Significant insider selling has occurred recently—CEO Andrew Houston sold 164,502 shares and insiders sold 471,774 shares worth roughly $11.8M over the past quarter, though insiders still own about 29.95% of the stock.

Dropbox, Inc. (NASDAQ:DBX - Get Free Report)'s stock price hit a new 52-week low on Thursday . The company traded as low as $21.94 and last traded at $22.1460, with a volume of 453629 shares. The stock had previously closed at $22.70.

Analyst Upgrades and Downgrades

DBX has been the topic of several recent research reports. JPMorgan Chase & Co. dropped their price objective on shares of Dropbox from $29.00 to $25.00 and set a "neutral" rating on the stock in a report on Friday, February 20th. Royal Bank Of Canada dropped their price objective on shares of Dropbox from $35.00 to $30.00 and set an "outperform" rating on the stock in a report on Friday, February 20th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Dropbox in a report on Wednesday, January 21st. William Blair restated an "underperform" rating on shares of Dropbox in a research note on Monday, March 23rd. Finally, UBS Group dropped their price target on shares of 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 given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, Dropbox has an average rating of "Reduce" and a consensus target price of $27.50.

Dropbox Stock Performance

The company has a market capitalization of $5.32 billion, a PE ratio of 11.86, a PEG ratio of 1.65 and a beta of 0.61. The stock's 50 day moving average is $24.69 and its 200 day moving average is $27.32.

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

Insider Buying and Selling

In other Dropbox news, insider Ashraf Alkarmi sold 12,472 shares of Dropbox stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $26.00, for a total transaction of $324,272.00. Following the completion of the transaction, the insider owned 414,661 shares of the company's stock, valued at $10,781,186. The trade was a 2.92% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Andrew Houston sold 164,502 shares of Dropbox stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $25.66, for a total value of $4,221,121.32. The SEC filing for this sale provides additional information. Insiders sold 471,774 shares of company stock worth $11,823,909 over the last quarter. 29.95% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Rossby Financial LCC grew its holdings in Dropbox by 128.5% during the 3rd quarter. Rossby Financial LCC now owns 937 shares of the company's stock valued at $28,000 after buying an additional 527 shares in the last quarter. Palisade Asset Management LLC purchased a new position in Dropbox during the 3rd quarter valued at about $30,000. First Horizon Corp bought a new stake in shares of Dropbox during the 3rd quarter valued at about $31,000. Kestra Advisory Services LLC bought a new stake in shares of Dropbox during the 4th quarter valued at about $31,000. Finally, Larson Financial Group LLC boosted its position in shares of Dropbox by 228.0% during the 4th quarter. Larson Financial Group LLC now owns 1,138 shares of the company's stock valued at $32,000 after acquiring an additional 791 shares during the last quarter. Hedge funds and other institutional investors own 94.84% of the company's stock.

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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