Convergence Investment Partners LLC Raises Stock Position in Dropbox, Inc. $DBX

Key Points

• Convergence Investment Partners increased its Dropbox stake by 73.2% in the first quarter, bringing its holdings to 92,775 shares valued at about $2.1 million.
• Insiders have been selling shares: CEO Ashraf Alkarmi and CAO Sarah Elizabeth Schubach both reduced their positions, and insiders sold 129,082 shares worth about $3.49 million over the last 90 days.
• Dropbox beat earnings expectations in its latest quarter, reporting $0.76 EPS versus $0.71 expected and revenue of $629.5 million, while analysts currently have a consensus rating of “Reduce” with a $27 target price.

Convergence Investment Partners LLC raised its holdings in shares of Dropbox, Inc. (NASDAQ:DBX - Free Report) by 73.2% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 92,775 shares of the company's stock after acquiring an additional 39,209 shares during the quarter. Convergence Investment Partners LLC's holdings in Dropbox were worth $2,108,000 as of its most recent SEC filing.

Several other large investors have also made changes to their positions in the business. Meeder Asset Management Inc. purchased a new stake in shares of Dropbox during the first quarter worth about $626,000. Parallel Advisors LLC lifted its holdings in Dropbox by 49.8% in the 1st quarter. Parallel Advisors LLC now owns 8,634 shares of the company's stock worth $196,000 after purchasing an additional 2,869 shares in the last quarter. KBC Group NV lifted its holdings in Dropbox by 12.6% in the 1st quarter. KBC Group NV now owns 944,829 shares of the company's stock worth $21,466,000 after purchasing an additional 105,876 shares in the last quarter. Gallacher Capital Management LLC bought a new position in Dropbox in the 1st quarter worth approximately $400,000. Finally, Illinois Municipal Retirement Fund boosted its stake in Dropbox by 18.8% in the 1st quarter. Illinois Municipal Retirement Fund now owns 289,178 shares of the company's stock worth $6,570,000 after purchasing an additional 45,749 shares during the period. 94.84% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Dropbox

In related news, CEO Ashraf Alkarmi sold 22,700 shares of Dropbox stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $27.86, for a total transaction of $632,422.00. Following the completion of the transaction, the chief executive officer directly owned 1,080,746 shares of the company's stock, valued at approximately $30,109,583.56. The trade was a 2.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Sarah Elizabeth Schubach sold 1,305 shares of the stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $27.11, for a total transaction of $35,378.55. Following the completion of the sale, the chief accounting officer directly owned 127,204 shares in the company, valued at $3,448,500.44. This trade represents a 1.02% 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. In the last ninety days, insiders have sold 129,082 shares of company stock worth $3,489,910. 35.48% of the stock is currently owned by insiders.

Dropbox Stock Performance

NASDAQ:DBX opened at $30.53 on Tuesday. The stock's fifty day moving average is $27.63 and its 200 day moving average is $25.97. Dropbox, Inc. has a fifty-two week low of $21.69 and a fifty-two week high of $32.40. The firm has a market capitalization of $7.12 billion, a PE ratio of 16.68, a PEG ratio of 3.35 and a beta of 0.66.

Dropbox (NASDAQ:DBX - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.76 EPS for the quarter, topping the consensus estimate 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 analyst estimates of $620.56 million. During the same period in the previous year, the firm earned $0.70 earnings per share. Dropbox's quarterly revenue was up .8% compared to the same quarter last year. Equities analysts forecast that Dropbox, Inc. will post 2.09 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Wall Street Zen raised shares of Dropbox from a "hold" rating to a "buy" rating in a report on Sunday, June 28th. William Blair restated an "underperform" rating on shares of Dropbox in a research report on Monday, March 23rd. Citigroup raised their target price on shares of Dropbox from $27.00 to $28.00 and gave the company a "neutral" rating in a research note on Monday, May 11th. Weiss Ratings reiterated a "hold (c)" rating on shares of Dropbox in a report on Monday, May 4th. Finally, Royal Bank Of Canada reiterated an "outperform" rating on shares of Dropbox in a report on Monday, June 1st. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Dropbox presently has an average rating of "Reduce" and a consensus target price of $27.00.

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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