AXQ Capital LP Buys Shares of 147,301 Dropbox, Inc. $DBX

Key Points

• AXQ Capital LP acquired 147,301 Dropbox shares worth approximately $4.05 million in the second quarter, representing 0.07% of the company. Other institutional investors also initiated positions, and institutions collectively own 94.84% of Dropbox.
• Dropbox’s latest quarterly results modestly exceeded expectations, with earnings of $0.75 per share versus $0.74 expected and revenue of $631.5 million versus $626.7 million forecast. Revenue increased 0.9% year over year.
• Analyst sentiment remains mixed: Dropbox has an average “Reduce” rating and a $30.75 price target, despite RBC maintaining an “Outperform” rating with a $42 target. The stock recently traded near its 52-week high at $35.70.

AXQ Capital LP acquired a new stake in shares of Dropbox, Inc. (NASDAQ:DBX - Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The fund acquired 147,301 shares of the company's stock, valued at approximately $4,046,000. AXQ Capital LP owned 0.07% of Dropbox as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. Nykredit A S purchased a new stake in shares of Dropbox in the 2nd quarter worth $261,000. Resolute Advisors LLC purchased a new position in Dropbox during the 2nd quarter valued at about $260,000. Proficio Capital Partners LLC purchased a new position in Dropbox during the 2nd quarter valued at about $383,000. Public Employees Retirement System of Ohio bought a new stake in shares of Dropbox in the 2nd quarter valued at about $1,295,000. Finally, Globeflex Capital L P purchased a new position in Dropbox during the second quarter valued at approximately $518,000. 94.84% of the stock is owned by hedge funds and other institutional investors.

Dropbox Price Performance

Shares of DBX opened at $35.70 on Friday. The company's fifty day moving average price is $31.99 and its 200-day moving average price is $27.70. Dropbox, Inc. has a 1-year low of $21.69 and a 1-year high of $36.37. The firm has a market capitalization of $8.06 billion, a PE ratio of 19.83, a price-to-earnings-growth ratio of 5.10 and a beta of 0.65.

Dropbox (NASDAQ:DBX - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.75 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.74 by $0.01. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%.The company had revenue of $631.50 million during the quarter, compared to analyst estimates of $626.69 million. During the same quarter last year, the business posted $0.71 EPS. The firm's quarterly revenue was up .9% on a year-over-year basis. As a group, research analysts anticipate that Dropbox, Inc. will post 1.93 EPS for the current fiscal year.

Insider Buying and Selling at Dropbox

In related news, Director Karen Peacock sold 2,000 shares of Dropbox stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $33.00, for a total transaction of $66,000.00. Following the completion of the transaction, the director directly owned 22,366 shares in the company, valued at approximately $738,078. This trade represents a 8.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Sarah Schubach sold 1,632 shares of the firm's stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $31.61, for a total transaction of $51,587.52. Following the sale, the chief accounting officer directly owned 124,266 shares in the company, valued at $3,928,048.26. The trade was a 1.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 38,667 shares of company stock valued at $1,285,874. Company insiders own 35.48% of the company's stock.

More Dropbox News

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Royal Bank of Canada reaffirmed its “Outperform” rating on Dropbox and set a $42 price target, implying roughly 17.6% upside from the referenced $35.70 level. Benzinga analyst rating report
• Positive Sentiment: Dropbox’s latest quarterly results modestly exceeded expectations, with earnings of $0.75 per share versus the $0.74 consensus and revenue of $631.5 million versus $626.7 million expected. Revenue rose 0.9% year over year, offering a supportive fundamental backdrop.
• Neutral Sentiment: Chief Accounting Officer Sarah Elizabeth Schubach sold 1,631 shares for approximately $57,901 under a pre-arranged Rule 10b5-1 trading plan. The transaction reduced her holdings by 1.4%, but she retained 115,150 shares, limiting its significance as a signal about management’s outlook. SEC insider trading filing
• Negative Sentiment: Dropbox disclosed that approximately 5,000 accounts were compromised in an August incident involving a legacy Lenovo ID login. Attackers reportedly accessed accounts without passwords and viewed or downloaded files, creating potential risks involving customer trust, remediation expenses, regulatory scrutiny and liability. Reuters cybersecurity report
• Negative Sentiment: Options activity showed elevated demand for downside protection, with 3,282 put contracts traded—about 48% above typical daily volume. This may indicate hedging or bearish positioning, although it is not conclusive evidence of a fundamental deterioration.

Analyst Ratings Changes

DBX has been the topic of several recent research reports. Wall Street Zen cut Dropbox from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Royal Bank Of Canada reissued an "outperform" rating and set a $42.00 price target on shares of Dropbox in a research report on Thursday. Zacks Research cut shares of Dropbox from a "hold" rating to a "strong sell" rating in a report on Wednesday, August 19th. Citigroup lifted their price objective on shares of Dropbox from $28.00 to $33.00 and gave the stock a "neutral" rating in a research report on Friday, August 7th. Finally, Bank of America restated an "underperform" rating on shares of Dropbox in a research note on Friday, August 7th. One investment analyst has rated the stock with a Buy rating, four have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, Dropbox currently has an average rating of "Reduce" and an average price target of $30.75.

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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