Connor Clark & Lunn Investment Management Ltd. Sells 103,197 Shares of Dropbox, Inc. (NASDAQ:DBX)

Key Points

• Connor Clark & Lunn Investment Management Ltd. reduced its holdings in Dropbox by 19.2%, selling 103,197 shares, which brings their total ownership to 434,678 shares valued at approximately $11.61 million.
• Insider trading activity included CEO Andrew Houston selling 319,000 shares for over $9 million, reflecting a 3.72% decrease in his position, while CFO Timothy Regan also sold shares, indicating significant insider movements within the company.
• Dropbox reported $0.71 earnings per share for the last quarter, surpassing consensus estimates, even as revenue declined by 1.4% from the prior year.

Connor Clark & Lunn Investment Management Ltd. reduced its stake in Dropbox, Inc. (NASDAQ:DBX - Free Report) by 19.2% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 434,678 shares of the company's stock after selling 103,197 shares during the quarter. Connor Clark & Lunn Investment Management Ltd. owned about 0.14% of Dropbox worth $11,610,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. True Wealth Design LLC increased its stake in Dropbox by 191.0% in the fourth 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 last quarter. SBI Securities Co. Ltd. grew its stake in Dropbox by 33.4% during the first quarter. SBI Securities Co. Ltd. now owns 1,794 shares of the company's stock worth $48,000 after purchasing an additional 449 shares during the period. Fifth Third Bancorp grew its stake in Dropbox by 27.3% during the first quarter. Fifth Third Bancorp now owns 2,288 shares of the company's stock worth $61,000 after purchasing an additional 490 shares during the period. UMB Bank n.a. boosted its position in shares of Dropbox by 115.0% during the 1st quarter. UMB Bank n.a. now owns 2,501 shares of the company's stock worth $67,000 after purchasing an additional 1,338 shares in the last quarter. Finally, Promethos Capital LLC bought a new position in shares of Dropbox during the 4th quarter worth about $100,000. 94.84% of the stock is currently owned by institutional investors and hedge funds.

Dropbox Stock Performance

Shares of Dropbox stock traded up $0.25 during mid-day trading on Friday, hitting $27.98. 871,253 shares of the stock were exchanged, compared to its average volume of 3,758,317. Dropbox, Inc. has a 12 month low of $22.43 and a 12 month high of $33.33. The company has a 50-day simple moving average of $27.74 and a 200 day simple moving average of $28.16. The company has a market capitalization of $7.87 billion, a P/E ratio of 17.05, a P/E/G ratio of 3.78 and a beta of 0.64.

Dropbox (NASDAQ:DBX - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported $0.71 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 firm had revenue of $625.70 million for the quarter, compared to analysts' expectations of $618.60 million. During the same quarter last year, the firm earned $0.60 EPS. The company's quarterly revenue was down 1.4% compared to the same quarter last year. Analysts predict that Dropbox, Inc. will post 1.64 EPS for the current year.

Analysts Set New Price Targets

A number of research firms have recently issued reports on DBX. UBS Group cut their price objective on shares of Dropbox from $31.00 to $29.00 and set a "neutral" rating on the stock in a research report on Friday, August 8th. Citigroup increased their price objective on shares of Dropbox from $30.00 to $32.00 and gave the stock a "neutral" rating in a research report on Friday, May 9th.

Insider Activity

In other news, CEO Andrew Houston sold 319,000 shares of the firm's stock in a transaction that occurred on Wednesday, June 11th. The shares were sold at an average price of $28.48, for a total transaction of $9,085,120.00. Following the completion of the sale, the chief executive officer owned 8,266,666 shares in the company, valued at $235,434,647.68. This trade represents a 3.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Timothy Regan sold 10,000 shares of the firm's stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $27.94, for a total value of $279,400.00. Following the completion of the sale, the chief financial officer directly owned 516,094 shares of the company's stock, valued at $14,419,666.36. This represents a 1.90% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 450,598 shares of company stock worth $12,770,529 in the last quarter. 29.95% of the stock is owned by corporate insiders.

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.