Intech Investment Management LLC Reduces Position in Dropbox, Inc. $DBX

Key Points

• Intech Investment Management sharply reduced its Dropbox stake by 94.2% in the fourth quarter, selling 384,396 shares and leaving it with 23,562 shares valued at about $655,000.
• Insider selling has also been notable: CEO Andrew Houston and insider William T. Yoon both sold shares under pre-arranged 10b5-1 plans, with insiders selling a combined $6.0 million of stock over the last three months.
• Analysts remain mixed on Dropbox, with a consensus rating of “Reduce” and an average price target of $27.00, even though the company recently beat earnings estimates and posted slightly higher revenue year over year.

Intech Investment Management LLC cut its position in Dropbox, Inc. (NASDAQ:DBX - Free Report) by 94.2% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 23,562 shares of the company's stock after selling 384,396 shares during the period. Intech Investment Management LLC's holdings in Dropbox were worth $655,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors also recently modified their holdings of DBX. Rossby Financial LCC increased its position in shares of Dropbox by 128.5% in the 3rd quarter. Rossby Financial LCC now owns 937 shares of the company's stock valued at $28,000 after purchasing an additional 527 shares during the last quarter. Palisade Asset Management LLC purchased a new stake in shares of Dropbox in the 3rd quarter valued at approximately $30,000. Larson Financial Group LLC increased its position in shares of Dropbox by 228.0% in the 4th quarter. Larson Financial Group LLC now owns 1,138 shares of the company's stock valued at $32,000 after purchasing an additional 791 shares during the last quarter. Geneos Wealth Management Inc. increased its position in shares of Dropbox by 78.0% in the 2nd quarter. Geneos Wealth Management Inc. now owns 1,273 shares of the company's stock valued at $36,000 after purchasing an additional 558 shares during the last quarter. Finally, Hantz Financial Services Inc. increased its position in shares of Dropbox by 342.8% in the 3rd quarter. Hantz Financial Services Inc. now owns 1,448 shares of the company's stock valued at $44,000 after purchasing an additional 1,121 shares during the last quarter. 94.84% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Dropbox

In other Dropbox news, insider William T. Yoon sold 7,230 shares of the firm's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $27.57, for a total transaction of $199,331.10. Following the transaction, the insider directly owned 366,963 shares of the company's stock, valued at approximately $10,117,169.91. This trade represents a 1.93% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at 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 Andrew Houston sold 111,166 shares of the firm's stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $22.89, for a total transaction of $2,544,589.74. Following the transaction, the chief executive officer directly owned 8,266,666 shares in the company, valued at $189,223,984.74. The trade was a 1.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 239,883 shares of company stock worth $6,006,972 in the last three months. Company insiders own 35.48% of the company's stock.

Wall Street Analysts Forecast Growth

DBX has been the topic of a number of recent analyst reports. Royal Bank Of Canada reissued an "outperform" rating on shares of Dropbox in a research report on Monday, June 1st. Wall Street Zen raised shares of Dropbox from a "hold" rating to a "buy" rating in a research report on Saturday, May 16th. Citigroup increased their price objective on shares of Dropbox from $27.00 to $28.00 and gave the company a "neutral" rating in a research report on Monday, May 11th. JPMorgan Chase & Co. lowered their target price on shares of Dropbox from $29.00 to $25.00 and set a "neutral" rating for the company in a report on Friday, February 20th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Dropbox in a report on Monday, May 4th. One equities research analyst has rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Dropbox currently has an average rating of "Reduce" and a consensus target price of $27.00.

Dropbox Stock Performance

Shares of Dropbox stock opened at $27.30 on Tuesday. Dropbox, Inc. has a 1 year low of $21.69 and a 1 year high of $32.40. The company has a market capitalization of $6.37 billion, a P/E ratio of 14.92, a PEG ratio of 3.01 and a beta of 0.67. The company's fifty day moving average is $25.20 and its two-hundred day moving average is $26.15.

Dropbox (NASDAQ:DBX - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.71 by $0.05. Dropbox had a net margin of 18.71% and a negative return on equity of 30.01%. The company had revenue of $629.50 million for the quarter, compared to the consensus estimate of $620.56 million. During the same period last year, the firm posted $0.70 EPS. Dropbox's revenue for the quarter was up .8% on a year-over-year basis. As a group, equities analysts expect that Dropbox, Inc. will post 2.09 earnings per share for the current year.

Dropbox Company Profile

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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