Dark Forest Capital Management LP Takes Position in Dropbox, Inc. $DBX

Key Points

• Dark Forest Capital Management LP acquired a new stake in Dropbox, purchasing 163,542 shares valued at approximately $4.37 million, representing about 0.05% of the company's stock.
• Dropbox's recent earnings report showed an EPS of $0.71, exceeding estimates by $0.08, with revenues of $625.7 million, slightly above expectations.
• Insider activity included significant sales, with Ashraf Alkarmi selling over 10,000 shares for about $275,675, indicating potential confidence issues among company leaders.

Dark Forest Capital Management LP bought a new position in shares of Dropbox, Inc. (NASDAQ:DBX - Free Report) during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund bought 163,542 shares of the company's stock, valued at approximately $4,368,000. Dark Forest Capital Management LP owned approximately 0.05% of Dropbox at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. Elequin Capital LP lifted its holdings in shares of Dropbox by 71.0% in the first quarter. Elequin Capital LP now owns 1,130 shares of the company's stock valued at $30,000 after purchasing an additional 469 shares in the last quarter. Brooklyn Investment Group lifted its holdings in shares of Dropbox by 250.3% in the first quarter. Brooklyn Investment Group now owns 1,387 shares of the company's stock valued at $37,000 after purchasing an additional 991 shares in the last quarter. SBI Securities Co. Ltd. lifted its holdings in shares of Dropbox by 33.4% in the first quarter. SBI Securities Co. Ltd. now owns 1,794 shares of the company's stock valued at $48,000 after purchasing an additional 449 shares in the last quarter. Fifth Third Bancorp lifted its holdings in shares of Dropbox by 27.3% in the first quarter. Fifth Third Bancorp now owns 2,288 shares of the company's stock valued at $61,000 after purchasing an additional 490 shares in the last quarter. Finally, UMB Bank n.a. lifted its holdings in shares of Dropbox by 115.0% in the first quarter. UMB Bank n.a. now owns 2,501 shares of the company's stock valued at $67,000 after purchasing an additional 1,338 shares in the last quarter. 94.84% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of analysts have recently commented on DBX shares. Wall Street Zen lowered Dropbox from a "buy" rating to a "hold" rating in a report on Friday. UBS Group cut their price target on Dropbox from $31.00 to $29.00 and set a "neutral" rating on the stock in a report on Friday, August 8th. Finally, Citigroup boosted their price target on Dropbox from $30.00 to $32.00 and gave the company a "neutral" rating in a report on Friday, May 9th. Three analysts have rated the stock with a Hold rating, According to MarketBeat, Dropbox has an average rating of "Hold" and a consensus price target of $30.33.

Dropbox Stock Performance

DBX traded up $0.44 on Friday, hitting $29.87. 2,144,741 shares of the company were exchanged, compared to its average volume of 3,257,481. Dropbox, Inc. has a 12 month low of $22.72 and a 12 month high of $33.33. The company has a market cap of $8.06 billion, a PE ratio of 18.21, a PEG ratio of 3.89 and a beta of 0.70. The stock's fifty day moving average is $27.76 and its 200-day moving average is $27.76.

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

Insider Activity

In other Dropbox news, CFO Timothy Regan sold 10,000 shares of the business's stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $27.94, for a total transaction of $279,400.00. Following the transaction, the chief financial officer owned 516,094 shares of the company's stock, valued at $14,419,666.36. The trade was a 1.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CTO Ali Dasdan sold 7,146 shares of the business's stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $27.82, for a total value of $198,801.72. Following the transaction, the chief technology officer directly owned 588,793 shares in the company, valued at approximately $16,380,221.26. This trade represents a 1.20% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 562,072 shares of company stock valued at $15,858,981. 29.95% of the stock is owned by insiders.

Dropbox Profile

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.