Dropbox (NASDAQ:DBX) Upgraded at Wall Street Zen

Key Points

• Dropbox was upgraded by Wall Street Zen from “hold” to “buy”, even though broader analyst sentiment remains cautious with a consensus rating of “Reduce” and a $27 target price.
• The company beat quarterly earnings expectations, reporting $0.76 EPS versus the $0.71 estimate and revenue of $629.5 million versus expectations of $620.56 million.
• Insider activity has leaned toward selling, with executives recently selling shares and insiders offloading 249,288 shares worth about $5.99 million over the last three months.

Dropbox (NASDAQ:DBX - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday.

Several other brokerages have also recently commented on DBX. Citigroup increased their target price on shares of Dropbox from $27.00 to $28.00 and gave the stock a "neutral" rating in a report on Monday. Royal Bank Of Canada boosted their price target on shares of Dropbox from $30.00 to $32.00 and gave the stock an "outperform" rating in a research report on Friday, May 8th. JPMorgan Chase & Co. decreased their price objective on Dropbox from $29.00 to $25.00 and set a "neutral" rating for the company in a report on Friday, February 20th. UBS Group lowered their target price on Dropbox from $27.00 to $23.00 and set a "sell" rating on the stock in a research report on Friday, February 20th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Dropbox in a research report on Monday, May 4th. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Reduce" and a consensus price target of $27.00.

Dropbox Stock Performance

NASDAQ:DBX opened at $26.82 on Friday. The company has a market cap of $6.26 billion, a PE ratio of 14.66, a PEG ratio of 2.95 and a beta of 0.64. Dropbox has a 52-week low of $21.69 and a 52-week high of $32.40. The stock has a 50-day simple moving average of $24.52 and a 200 day simple moving average of $26.44.

Dropbox (NASDAQ:DBX - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.76 EPS for the quarter, beating the consensus estimate of $0.71 by $0.05. The firm 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 business's quarterly revenue was up .8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.70 EPS. On average, research analysts predict that Dropbox will post 2.03 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CAO Sarah Elizabeth Schubach sold 1,769 shares of Dropbox stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $23.95, for a total transaction of $42,367.55. Following the completion of the transaction, the chief accounting officer directly owned 136,106 shares in the company, valued at approximately $3,259,738.70. The trade was a 1.28% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Ali Dasdan sold 7,306 shares of the business's stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $24.89, for a total value of $181,846.34. Following the transaction, the chief technology officer directly owned 499,379 shares in the company, valued at $12,429,543.31. The trade was a 1.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 249,288 shares of company stock worth $5,994,652 in the last three months. 35.48% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Dropbox

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

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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