Dropbox's (DBX) Hold (C+) Rating Reiterated at Weiss Ratings

Key Points

• Dropbox's stock has been reaffirmed with a "hold (C+)" rating by Weiss Ratings, while other analysts have also recently downgraded their ratings on the stock.
• The company's stock is currently trading at approximately $29.56, with a market capitalization of $7.98 billion and a PE ratio of 18.02.
• In recent insider trading, CTO Ali Dasdan and CEO Andrew Houston sold significant amounts of stock, with total insider sales over the last quarter reaching $9.24 million.

Dropbox (NASDAQ:DBX - Get Free Report)'s stock had its "hold (c+)" rating restated by stock analysts at Weiss Ratings in a research report issued to clients and investors on Wednesday,Weiss Ratings reports.

Several other research analysts have also recently weighed in on DBX. Wall Street Zen cut shares of Dropbox from a "buy" rating to a "hold" rating in a report on Friday, September 5th. UBS Group cut shares of Dropbox from a "neutral" rating to a "sell" rating and decreased their price target for the stock from $29.00 to $27.00 in a report on Thursday, September 18th. Three 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.com, the stock has an average rating of "Reduce" and a consensus target price of $29.67.

Dropbox Stock Performance

DBX stock traded up $0.45 during midday trading on Wednesday, reaching $29.56. 2,065,045 shares of the company's stock traded hands, compared to its average volume of 3,569,850. The firm has a market capitalization of $7.98 billion, a PE ratio of 18.02, a price-to-earnings-growth ratio of 3.84 and a beta of 0.67. Dropbox has a 52 week low of $24.42 and a 52 week high of $33.33. The company has a 50-day moving average price of $29.19 and a two-hundred day moving average price of $28.40.

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

Insiders Place Their Bets

In related news, CTO Ali Dasdan sold 12,812 shares of the stock in a transaction on Monday, September 8th. The stock was sold at an average price of $30.00, for a total value of $384,360.00. Following the transaction, the chief technology officer owned 551,060 shares of the company's stock, valued at $16,531,800. This represents a 2.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Andrew Houston sold 101,167 shares of the stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $29.64, for a total value of $2,998,589.88. The disclosure for this sale can be found here. Insiders have sold 318,566 shares of company stock valued at $9,241,871 over the last quarter. Insiders own 29.95% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. SGL Investment Advisors Inc. grew its stake in shares of Dropbox by 2.4% during the second quarter. SGL Investment Advisors Inc. now owns 16,143 shares of the company's stock valued at $442,000 after buying an additional 375 shares during the last quarter. SBI Securities Co. Ltd. grew its stake in shares of Dropbox by 33.4% during the first quarter. SBI Securities Co. Ltd. now owns 1,794 shares of the company's stock valued at $48,000 after buying an additional 449 shares during the last quarter. PNC Financial Services Group Inc. grew its stake in shares of Dropbox by 5.7% during the second quarter. PNC Financial Services Group Inc. now owns 8,607 shares of the company's stock valued at $246,000 after buying an additional 461 shares during the last quarter. Elequin Capital LP grew its stake in shares of Dropbox by 71.0% during the first quarter. Elequin Capital LP now owns 1,130 shares of the company's stock valued at $30,000 after buying an additional 469 shares during the last quarter. Finally, Fifth Third Bancorp grew its stake in shares of Dropbox by 27.3% during the first quarter. Fifth Third Bancorp now owns 2,288 shares of the company's stock valued at $61,000 after buying an additional 490 shares during the last quarter. 94.84% of the stock is owned by institutional investors.

About Dropbox

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.

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