Fred Alger Management LLC Buys Shares of 9,836 Dropbox, Inc. $DBX

Key Points

• Fred Alger Management LLC purchased a new stake in Dropbox, acquiring 9,836 shares valued at approximately $263,000 during the 1st quarter.
• Institutional investors and hedge funds now own 94.84% of Dropbox's stock, with several firms significantly increasing their holdings in the same period.
• Dropbox reported a net margin of 19.17% and revenue of $625.70 million in the latest quarter, surpassing analyst expectations.

Fred Alger Management LLC purchased a new stake in Dropbox, Inc. (NASDAQ:DBX - Free Report) in the 1st quarter, according to its most recent filing with the SEC. The fund purchased 9,836 shares of the company's stock, valued at approximately $263,000.

A number of other large investors also recently made changes to their positions in the business. SG Americas Securities LLC acquired a new position in Dropbox in the first quarter valued at $647,000. Rehmann Capital Advisory Group acquired a new position in shares of Dropbox during the 1st quarter valued at about $675,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Dropbox by 8.5% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,761,252 shares of the company's stock valued at $52,908,000 after acquiring an additional 137,916 shares during the last quarter. Amundi lifted its holdings in shares of Dropbox by 19.8% during the 1st quarter. Amundi now owns 444,100 shares of the company's stock worth $11,915,000 after acquiring an additional 73,476 shares during the period. Finally, Commerce Bank boosted its position in shares of Dropbox by 94.9% in the first quarter. Commerce Bank now owns 203,052 shares of the company's stock worth $5,424,000 after acquiring an additional 98,867 shares during the last quarter. Hedge funds and other institutional investors own 94.84% of the company's stock.

Dropbox Trading Up 0.9%

Shares of DBX traded up $0.30 during midday trading on Tuesday, reaching $32.17. 3,187,820 shares of the company were exchanged, compared to its average volume of 2,874,033. Dropbox, Inc. has a 1-year low of $24.25 and a 1-year high of $33.33. The stock has a 50-day moving average price of $28.23 and a 200-day moving average price of $27.92. The company has a market cap of $8.68 billion, a price-to-earnings ratio of 19.62, a P/E/G ratio of 4.21 and a beta of 0.70.

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

Insider Activity at Dropbox

In other news, insider Ashraf Alkarmi sold 10,000 shares of the business's stock in a transaction on Monday, September 8th. The shares were sold at an average price of $30.00, for a total transaction of $300,000.00. Following the transaction, the insider directly owned 459,333 shares of the company's stock, valued at approximately $13,779,990. The trade was a 2.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CTO Ali Dasdan sold 12,812 shares of the company's stock in a transaction on Monday, September 8th. The shares were sold at an average price of $30.00, for a total transaction of $384,360.00. Following the completion of the transaction, the chief technology officer owned 551,060 shares of the company's stock, valued at $16,531,800. This trade represents a 2.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 314,333 shares of company stock valued at $8,938,399. 28.59% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

Several brokerages recently commented on DBX. Wall Street Zen lowered shares of Dropbox from a "buy" rating to a "hold" rating in a research report on Friday, September 5th. UBS Group dropped their price objective on Dropbox from $31.00 to $29.00 and set a "neutral" rating for the company in a report on Friday, August 8th. Three investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, Dropbox presently has a consensus rating of "Hold" and a consensus target price of $30.33.

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.