Arrowstreet Capital Limited Partnership Acquires 767,119 Shares of Dropbox, Inc. $DBX

Key Points

• Arrowstreet Capital increased its Dropbox stake by 11.3% in Q4, buying 767,119 shares and bringing its total holdings to 7,573,627 shares worth about $210.5 million.
• Other institutional investors also added to Dropbox, with firms like Norges Bank and Allianz Asset Management boosting positions; overall, 94.84% of the stock is owned by institutions.
• Dropbox beat Q1 earnings expectations, posting $0.76 EPS versus $0.71 expected and revenue of $629.5 million, while analysts currently have a consensus rating of “Reduce” with an average price target of $27.00.

Arrowstreet Capital Limited Partnership lifted its holdings in Dropbox, Inc. (NASDAQ:DBX - Free Report) by 11.3% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 7,573,627 shares of the company's stock after acquiring an additional 767,119 shares during the period. Arrowstreet Capital Limited Partnership owned approximately 2.93% of Dropbox worth $210,547,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently made changes to their positions in the company. Norges Bank bought a new stake in Dropbox in the 4th quarter valued at about $69,909,000. Arbejdsmarkedets Tillaegspension bought a new stake in Dropbox in the 4th quarter valued at about $22,050,000. Allianz Asset Management GmbH increased its position in Dropbox by 28.1% in the 4th quarter. Allianz Asset Management GmbH now owns 2,720,372 shares of the company's stock valued at $75,626,000 after buying an additional 596,440 shares in the last quarter. Northern Trust Corp increased its position in Dropbox by 29.1% in the 3rd quarter. Northern Trust Corp now owns 2,488,077 shares of the company's stock valued at $75,165,000 after buying an additional 560,694 shares in the last quarter. Finally, Robeco Institutional Asset Management B.V. increased its position in Dropbox by 22.5% in the 4th quarter. Robeco Institutional Asset Management B.V. now owns 2,518,534 shares of the company's stock valued at $70,015,000 after buying an additional 463,258 shares in the last quarter. 94.84% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on DBX. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Dropbox in a research report on Monday, May 4th. JPMorgan Chase & Co. decreased their target price on Dropbox from $29.00 to $25.00 and set a "neutral" rating for the company in a research report on Friday, February 20th. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Dropbox in a research report on Monday, June 1st. Citigroup boosted their target price on Dropbox from $27.00 to $28.00 and gave the company a "neutral" rating in a research report on Monday, May 11th. Finally, William Blair reissued an "underperform" rating on shares of Dropbox in a report on Monday, March 23rd. One 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 stock. According to MarketBeat, the company has a consensus rating of "Reduce" and an average price target of $27.00.

Insiders Place Their Bets

In related news, insider William T. Yoon sold 7,230 shares of the company's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $27.57, for a total value of $199,331.10. Following the transaction, the insider owned 366,963 shares in the company, valued at approximately $10,117,169.91. This represents a 1.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Andrew Houston sold 111,166 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $22.89, for a total value of $2,544,589.74. Following the completion of the transaction, the chief executive officer owned 8,266,666 shares in the company, valued at approximately $189,223,984.74. The trade was a 1.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 238,468 shares of company stock valued at $5,970,522 in the last quarter. 35.48% of the stock is currently owned by company insiders.

Dropbox Price Performance

DBX stock opened at $27.09 on Monday. The firm has a market cap of $6.32 billion, a PE ratio of 14.80, a P/E/G ratio of 2.97 and a beta of 0.67. The business has a 50 day moving average of $25.58 and a 200-day moving average of $26.09. Dropbox, Inc. has a 12-month low of $21.69 and a 12-month high of $32.40.

Dropbox (NASDAQ:DBX - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.71 by $0.05. Dropbox had a negative return on equity of 30.01% and a net margin of 18.71%.The company had revenue of $629.50 million during the quarter, compared to analyst estimates of $620.56 million. During the same period in the prior year, the company posted $0.70 earnings per share. Dropbox's quarterly revenue was up .8% on a year-over-year basis. On average, research analysts expect that Dropbox, Inc. will post 2.09 earnings per share for the current year.

Dropbox 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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