Legal & General Group Plc Sells 91,214 Shares of Dropbox, Inc. $DBX

Key Points

• Legal & General Group Plc reduced its Dropbox stake by 23.5% in the fourth quarter, selling 91,214 shares and leaving it with 297,451 shares worth about $8.27 million.
• Dropbox reported quarterly earnings of $0.76 per share, beating estimates, with revenue of $629.5 million, also above expectations and up 0.8% year over year.
• Despite the earnings beat, analysts remain cautious: the stock has a consensus rating of “Reduce” with a $27.00 price target, while recent insider sales included CEO Andrew Houston and CTO Ali Dasdan.

Legal & General Group Plc cut its holdings in Dropbox, Inc. (NASDAQ:DBX - Free Report) by 23.5% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 297,451 shares of the company's stock after selling 91,214 shares during the period. Legal & General Group Plc owned approximately 0.11% of Dropbox worth $8,269,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors also recently made changes to their positions in the company. WealthCollab LLC boosted its stake in Dropbox by 20.6% during the 4th quarter. WealthCollab LLC now owns 2,356 shares of the company's stock valued at $65,000 after purchasing an additional 403 shares during the last quarter. Lakewood Asset Management LLC boosted its stake in shares of Dropbox by 1.0% in the 4th quarter. Lakewood Asset Management LLC now owns 44,905 shares of the company's stock worth $1,248,000 after buying an additional 458 shares during the last quarter. Merit Financial Group LLC boosted its stake in shares of Dropbox by 4.4% in the 3rd quarter. Merit Financial Group LLC now owns 11,385 shares of the company's stock worth $344,000 after buying an additional 480 shares during the last quarter. Rossby Financial LCC raised its holdings in shares of Dropbox by 128.5% in the 3rd quarter. Rossby Financial LCC now owns 937 shares of the company's stock worth $28,000 after purchasing an additional 527 shares during the period. Finally, Geneos Wealth Management Inc. raised its holdings 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 worth $36,000 after purchasing an additional 558 shares during the period. 94.84% of the stock is currently owned by institutional investors and hedge funds.

Dropbox Price Performance

DBX stock opened at $27.52 on Friday. Dropbox, Inc. has a 1 year low of $21.69 and a 1 year high of $32.40. The firm has a 50-day moving average of $25.11 and a 200 day moving average of $26.19. The company has a market cap of $6.42 billion, a P/E ratio of 15.04, a PEG ratio of 2.98 and a beta of 0.67.

Dropbox (NASDAQ:DBX - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $0.76 earnings per share for the quarter, beating analysts' consensus estimates of $0.71 by $0.05. Dropbox had a net margin of 18.71% and a negative return on equity of 30.01%. The business had revenue of $629.50 million during the quarter, compared to the consensus estimate of $620.56 million. During the same quarter last year, the firm earned $0.70 earnings per share. The business's revenue for the quarter was up .8% on a year-over-year basis. On average, equities research analysts expect that Dropbox, Inc. will post 2.09 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Andrew Houston sold 30,332 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $27.50, for a total transaction of $834,130.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Ali Dasdan sold 5,666 shares of the stock in a transaction that occurred on 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 in the company, valued at approximately $14,182,679.16. The trade was a 1.09% decrease in their position. The SEC filing for this sale provides additional information. 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. Over the last quarter, insiders have sold 239,883 shares of company stock valued at $6,006,972. Company insiders own 35.48% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on DBX. JPMorgan Chase & Co. lowered their target price on shares of Dropbox from $29.00 to $25.00 and set a "neutral" rating on the stock in a report on Friday, February 20th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Dropbox in a report on Monday, May 4th. UBS Group cut their target price on shares of Dropbox from $27.00 to $23.00 and set a "sell" rating for the company in a research report on Friday, February 20th. William Blair reiterated an "underperform" rating on shares of Dropbox in a research report on Monday, March 23rd. Finally, Royal Bank Of Canada restated an "outperform" rating on shares of Dropbox in a research report on Monday. One research analyst has rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Reduce" and a consensus price target of $27.00.

Dropbox 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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