Dropbox, Inc. $DBX Shares Acquired by Hsbc Holdings PLC

Key Points

• Hsbc Holdings PLC increased its stake in Dropbox, Inc. by 82.1%, owning a total of 71,460 shares valued at approximately $1.89 million.
• Dropbox reported earnings per share (EPS) of $0.71 for the recent quarter, exceeding expectations of $0.63, while revenue decreased 1.4% year-over-year.
• Institutional investors own 94.84% of Dropbox's stock, indicating strong institutional interest in the company.

Hsbc Holdings PLC lifted its position in shares of Dropbox, Inc. (NASDAQ:DBX - Free Report) by 82.1% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 71,460 shares of the company's stock after purchasing an additional 32,219 shares during the quarter. Hsbc Holdings PLC's holdings in Dropbox were worth $1,892,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Elequin Capital LP grew its stake in Dropbox by 71.0% in the 1st quarter. Elequin Capital LP now owns 1,130 shares of the company's stock valued at $30,000 after acquiring an additional 469 shares during the period. True Wealth Design LLC grew its stake in Dropbox by 191.0% in the 4th quarter. True Wealth Design LLC now owns 1,036 shares of the company's stock valued at $31,000 after acquiring an additional 680 shares during the period. Brooklyn Investment Group grew its stake in Dropbox by 250.3% in the 1st quarter. Brooklyn Investment Group now owns 1,387 shares of the company's stock valued at $37,000 after acquiring an additional 991 shares during the period. SBI Securities Co. Ltd. grew its stake in Dropbox by 33.4% in the 1st quarter. SBI Securities Co. Ltd. now owns 1,794 shares of the company's stock valued at $48,000 after acquiring an additional 449 shares during the period. Finally, Fifth Third Bancorp grew its stake in Dropbox by 27.3% in the 1st quarter. Fifth Third Bancorp now owns 2,288 shares of the company's stock valued at $61,000 after acquiring an additional 490 shares during the period. Institutional investors and hedge funds own 94.84% of the company's stock.

Dropbox Stock Up 2.1%

Shares of DBX opened at $28.82 on Thursday. Dropbox, Inc. has a 52-week low of $22.72 and a 52-week high of $33.33. The firm's fifty day moving average is $27.67 and its two-hundred day moving average is $27.92. The stock has a market cap of $7.78 billion, a PE ratio of 17.57, a price-to-earnings-growth ratio of 3.73 and a beta of 0.64.

Dropbox (NASDAQ:DBX - Get Free Report) last announced 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 net margin of 19.17% and a negative return on equity of 61.31%. The company had revenue of $625.70 million for the quarter, compared to analysts' expectations of $618.60 million. During the same quarter in the previous year, the company posted $0.60 EPS. The firm's quarterly revenue was down 1.4% on a year-over-year basis. As a group, research analysts anticipate that Dropbox, Inc. will post 1.64 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on DBX. Citigroup lifted their price target on shares of Dropbox from $30.00 to $32.00 and gave the company a "neutral" rating in a research note on Friday, May 9th. UBS Group dropped their price target on shares of Dropbox from $31.00 to $29.00 and set a "neutral" rating on the stock in a research note on Friday, August 8th. Three research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $30.33.

Insider Activity

In other news, insider Ashraf Alkarmi sold 10,098 shares of the business's stock in a transaction dated Friday, June 13th. The shares were sold at an average price of $28.10, for a total transaction of $283,753.80. Following the transaction, the insider owned 492,856 shares of the company's stock, valued at approximately $13,849,253.60. The trade was a 2.01% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Timothy Regan sold 10,000 shares of the business's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $27.94, for a total transaction of $279,400.00. Following the transaction, the chief financial officer directly owned 516,094 shares in the company, valued at approximately $14,419,666.36. The trade was a 1.90% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 564,572 shares of company stock worth $15,930,931. Insiders own 29.95% of the company's stock.

About Dropbox

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.

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