California Public Employees Retirement System Lowers Stock Position in Dropbox, Inc. $DBX

Key Points

• California Public Employees Retirement System reduced its Dropbox stake by 16.3% in the first quarter, selling 87,545 shares and ending with 450,951 shares valued at about $10.25 million.
• Dropbox reported better-than-expected quarterly earnings, posting $0.76 EPS versus the $0.71 estimate and revenue of $629.5 million, slightly above analyst forecasts.
• Insider activity was mixed to negative, with executives and a director selling shares over the past few months, while analysts currently hold a consensus “Reduce” rating on the stock with a $27 target price.

California Public Employees Retirement System cut its holdings in shares of Dropbox, Inc. (NASDAQ:DBX - Free Report) by 16.3% during the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 450,951 shares of the company's stock after selling 87,545 shares during the period. California Public Employees Retirement System owned 0.19% of Dropbox worth $10,246,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of DBX. Arbejdsmarkedets Tillaegspension bought a new stake in Dropbox during the 4th quarter valued at $22,050,000. Nisa Investment Advisors LLC increased its holdings in shares of Dropbox by 57.9% in the 4th quarter. Nisa Investment Advisors LLC now owns 223,706 shares of the company's stock valued at $6,219,000 after acquiring an additional 82,053 shares during the period. Robeco Institutional Asset Management B.V. raised its position in shares of 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 worth $70,015,000 after acquiring an additional 463,258 shares in the last quarter. Pictet Asset Management Holding SA raised its position in shares of Dropbox by 317.2% in the 4th quarter. Pictet Asset Management Holding SA now owns 125,144 shares of the company's stock worth $3,479,000 after acquiring an additional 95,146 shares in the last quarter. Finally, ING Groep NV purchased a new stake in shares of Dropbox during the 4th quarter worth $1,223,000. 94.84% of the stock is owned by hedge funds and other institutional investors.

Dropbox Stock Performance

Dropbox stock opened at $29.19 on Friday. The stock has a market capitalization of $6.81 billion, a P/E ratio of 15.95, a P/E/G ratio of 3.20 and a beta of 0.66. The company's fifty day moving average price is $27.85 and its 200 day moving average price is $26.02. Dropbox, Inc. has a 1 year low of $21.69 and a 1 year high of $32.40.

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

Insider Activity

In related news, CAO Sarah Elizabeth Schubach sold 1,305 shares of the stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $27.11, for a total value of $35,378.55. Following the completion of the transaction, the chief accounting officer directly owned 127,204 shares of the company's stock, valued at approximately $3,448,500.44. This represents a 1.02% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Karen Peacock sold 2,000 shares of the firm's stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $29.00, for a total transaction of $58,000.00. Following the completion of the transaction, the director directly owned 24,366 shares in the company, valued at approximately $706,614. This represents a 7.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 129,082 shares of company stock valued at $3,489,910 in the last three months. Company insiders own 35.48% of the company's stock.

Analyst Ratings Changes

DBX has been the topic of a number of recent analyst reports. Citigroup raised their price target on shares of Dropbox from $27.00 to $28.00 and gave the company a "neutral" rating in a report on Monday, May 11th. Royal Bank Of Canada reiterated an "outperform" rating on shares of Dropbox in a research note on Monday, June 1st. Wall Street Zen upgraded shares of Dropbox from a "hold" rating to a "buy" rating in a research note on Sunday, June 28th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Dropbox in a report on Monday, May 4th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Dropbox has a consensus rating of "Reduce" and a consensus price target of $27.00.

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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