Dropbox, Inc. $DBX Shares Sold by Bank of New York Mellon Corp

Key Points

• Bank of New York Mellon reduced its Dropbox stake by 9.2% in the first quarter, selling 142,716 shares and retaining 1.41 million shares worth approximately $32.0 million. Institutional investors and hedge funds collectively own 94.84% of DBX.
• Dropbox reported quarterly earnings of $0.76 per share, exceeding estimates of $0.71, while revenue reached $629.5 million versus expectations of $620.6 million. Revenue rose 0.8% year over year, and analysts forecast full-year EPS of $2.09.
• Insiders sold shares recently, including the CTO’s $156,155 sale and the CEO’s $632,422 sale, though both transactions were conducted under pre-arranged plans or to cover tax obligations. Wall Street’s consensus rating remains “Reduce,” with a $27 average price target compared with the stock’s $29.19 opening price.

Bank of New York Mellon Corp trimmed its holdings in Dropbox, Inc. (NASDAQ:DBX - Free Report) by 9.2% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 1,409,534 shares of the company's stock after selling 142,716 shares during the period. Bank of New York Mellon Corp owned 0.58% of Dropbox worth $32,025,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also modified their holdings of the business. Palisade Asset Management LLC acquired a new stake in Dropbox in the 3rd quarter valued at about $30,000. Kestra Advisory Services LLC purchased a new position in Dropbox during the fourth quarter worth approximately $31,000. Larson Financial Group LLC lifted its position in Dropbox by 228.0% during the fourth quarter. Larson Financial Group LLC now owns 1,138 shares of the company's stock worth $32,000 after buying an additional 791 shares in the last quarter. Geneos Wealth Management Inc. boosted its stake in Dropbox by 78.0% during the second quarter. Geneos Wealth Management Inc. now owns 1,273 shares of the company's stock worth $36,000 after buying an additional 558 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd acquired a new position in Dropbox during the fourth quarter worth $38,000. 94.84% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, CTO Ali Dasdan sold 5,666 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $27.56, for a total transaction of $156,154.96. Following the sale, the chief technology officer owned 514,611 shares of the company's stock, valued at approximately $14,182,679.16. This represents a 1.09% decrease in their ownership of the stock. The sale 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ashraf Alkarmi sold 22,700 shares of the firm's stock in a transaction that occurred on 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 129,082 shares of company stock worth $3,489,910 in the last three months. 35.48% of the stock is currently owned by corporate insiders.

Dropbox Stock Performance

Shares of NASDAQ:DBX opened at $29.19 on Monday. The company has a market capitalization of $6.81 billion, a price-to-earnings ratio of 15.95, a PEG ratio of 3.20 and a beta of 0.66. Dropbox, Inc. has a 12-month low of $21.69 and a 12-month high of $32.40. The business has a 50-day moving average price of $27.85 and a 200 day moving average price of $26.02.

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

Wall Street Analyst Weigh In

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

About Dropbox

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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