Dropbox, Inc. $DBX Stock: Crossmark Global Holdings Inc. Reduces Stake

Key Points

• Crossmark Global Holdings reduced its Dropbox stake by 10.7% in the third quarter, selling 32,883 shares and retaining 275,216 shares worth approximately $9.3 million. Institutional investors collectively own 94.84% of the company.
• Dropbox reported quarterly revenue of $631.5 million and earnings of $0.75 per share, narrowly beating analyst estimates; revenue increased 0.9% year over year.
• Analyst sentiment remains cautious, with an average rating of “Reduce” and a $29.75 price target, while several insiders—including the CFO—have sold shares in recent months.

Crossmark Global Holdings Inc. decreased its position in Dropbox, Inc. (NASDAQ:DBX - Free Report) by 10.7% in the third quarter, according to its most recent Form 13F filing with the SEC. The firm owned 275,216 shares of the company's stock after selling 32,883 shares during the period. Crossmark Global Holdings Inc. owned 0.12% of Dropbox worth $9,316,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Pacer Advisors Inc. grew its position in shares of Dropbox by 2.8% during the 1st quarter. Pacer Advisors Inc. now owns 2,047,966 shares of the company's stock worth $46,530,000 after buying an additional 55,921 shares in the last quarter. Wedge Capital Management L L P NC increased its stake in shares of Dropbox by 26.4% during the second quarter. Wedge Capital Management L L P NC now owns 3,005,173 shares of the company's stock valued at $82,552,000 after buying an additional 627,111 shares during the period. OP Asset Management Ltd bought a new stake in shares of Dropbox in the first quarter valued at about $3,196,000. Corient Private Wealth LP raised its holdings in shares of Dropbox by 358.4% in the second quarter. Corient Private Wealth LP now owns 244,482 shares of the company's stock valued at $6,716,000 after acquiring an additional 191,147 shares in the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Dropbox in the second quarter valued at about $4,938,000. Institutional investors own 94.84% of the company's stock.

Dropbox Stock Performance

Shares of Dropbox stock opened at $37.48 on Friday. The company has a market capitalization of $8.46 billion, a PE ratio of 19.78, a P/E/G ratio of 5.39 and a beta of 0.63. The company has a 50-day simple moving average of $34.90 and a two-hundred day simple moving average of $30.24. Dropbox, Inc. has a one year low of $21.69 and a one year high of $38.17.

Dropbox (NASDAQ:DBX - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.75 earnings per share for the quarter, beating analysts' consensus estimates of $0.74 by $0.01. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. The business had revenue of $631.50 million for the quarter, compared to analysts' expectations of $626.69 million. During the same period last year, the business earned $0.71 EPS. The company's revenue was up .9% compared to the same quarter last year. On average, equities analysts predict that Dropbox, Inc. will post 1.94 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $42.00 price objective on shares of Dropbox in a research note on Thursday, September 3rd. Zacks Research raised shares of Dropbox from a "strong sell" rating to a "hold" rating in a research report on Tuesday, October 6th. Citigroup downgraded shares of Dropbox from a "neutral" rating to a "sell" rating and cut their target price for the company from $33.00 to $29.00 in a research report on Thursday, September 24th. William Blair upgraded shares of Dropbox from an "underperform" rating to a "market perform" rating in a report on Friday, August 7th. Finally, Bank of America reaffirmed an "underperform" rating on shares of Dropbox in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Buy rating, four have given a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average price target of $29.75.

Insider Activity

In related news, CFO Ross Tennenbaum sold 97,558 shares of the stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $35.02, for a total transaction of $3,416,481.16. Following the completion of the sale, the chief financial officer owned 690,666 shares of the company's stock, valued at $24,187,123.32. This represents a 12.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric Webster sold 15,830 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $34.09, for a total transaction of $539,644.70. Following the completion of the sale, the insider owned 416,236 shares of the company's stock, valued at approximately $14,189,485.24. This trade represents a 3.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 951,100 shares of company stock worth $32,927,493 over the last 90 days. 35.48% of the stock is currently owned by insiders.

Dropbox Company Profile

Dropbox, Inc NASDAQ: DBX is a software company that provides cloud-based tools for storing, organizing, sharing and collaborating on files. Its platform enables individuals, businesses and teams to access documents, photos and other content across connected devices, synchronize files and manage shared workflows.

The company's offerings include Dropbox for cloud storage and file collaboration, Dropbox Paper for shared documents and project work, Dropbox Sign for electronic signatures, and DocSend for securely sharing and tracking business documents.

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