Nisa Investment Advisors LLC Boosts Stake in Dropbox, Inc. $DBX

Key Points

• Nisa Investment Advisors increased its stake in Dropbox by 57.9% in Q4 to 223,706 shares, worth about $6.22 million at quarter end.
• Company insiders have been active sellers — CEO Andrew Houston sold 164,502 shares and insiders sold 360,608 shares (~$9.28 million) over the past 90 days — while institutional ownership remains very high at 94.84%.
• Wall Street sentiment has turned cautious with several downgrades and lowered price targets (consensus rating: Reduce, target $27.50), and the stock trades near its 52-week low despite a slight quarterly earnings beat.

Nisa Investment Advisors LLC grew its position in shares of Dropbox, Inc. (NASDAQ:DBX - Free Report) by 57.9% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 223,706 shares of the company's stock after acquiring an additional 82,053 shares during the quarter. Nisa Investment Advisors LLC owned about 0.09% of Dropbox worth $6,219,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also modified their holdings of the company. Rossby Financial LCC grew its holdings in shares of Dropbox by 128.5% during 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. Palisade Asset Management LLC purchased a new position in Dropbox in the third quarter valued at approximately $30,000. First Horizon Corp purchased a new position in Dropbox in the third quarter valued at approximately $31,000. LRI Investments LLC lifted its position in Dropbox by 666.7% during the third quarter. LRI Investments LLC now owns 1,150 shares of the company's stock valued at $35,000 after buying an additional 1,000 shares in the last quarter. Finally, Geneos Wealth Management Inc. grew its stake in Dropbox by 78.0% during the second quarter. Geneos Wealth Management Inc. now owns 1,273 shares of the company's stock worth $36,000 after buying an additional 558 shares during the period. 94.84% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, CAO Sarah Elizabeth Schubach sold 1,416 shares of Dropbox stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $24.49, for a total transaction of $34,677.84. Following the sale, the chief accounting officer directly owned 86,319 shares of the company's stock, valued at approximately $2,113,952.31. The trade was a 1.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Andrew Houston sold 164,502 shares of the business's stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $25.66, for a total value of $4,221,121.32. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 360,608 shares of company stock worth $9,279,320. 29.95% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on DBX shares. Wall Street Zen downgraded shares of Dropbox from a "buy" rating to a "hold" rating in a research note on Friday, January 23rd. JPMorgan Chase & Co. lowered their price target on Dropbox from $29.00 to $25.00 and set a "neutral" rating for the company in a report on Friday, February 20th. Weiss Ratings reissued a "hold (c+)" rating on shares of Dropbox in a research report on Wednesday, January 21st. UBS Group reduced their price objective on Dropbox from $27.00 to $23.00 and set a "sell" rating on the stock in a research note on Friday, February 20th. Finally, William Blair reaffirmed an "underperform" rating on shares of Dropbox in a research report on Monday, March 23rd. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Reduce" and a consensus target price of $27.50.

Dropbox Stock Up 1.4%

DBX opened at $23.40 on Friday. The firm's 50 day moving average is $24.93 and its 200-day moving average is $27.57. Dropbox, Inc. has a 52-week low of $22.00 and a 52-week high of $32.40. The firm has a market capitalization of $5.64 billion, a P/E ratio of 12.58, a P/E/G ratio of 1.63 and a beta of 0.61.

Dropbox (NASDAQ:DBX - Get Free Report) last announced its earnings results on Thursday, February 19th. The company reported $0.68 earnings per share for the quarter, beating the consensus estimate of $0.66 by $0.02. The business had revenue of $636.20 million during the quarter, compared to the consensus estimate of $627.83 million. Dropbox had a net margin of 20.17% and a negative return on equity of 37.47%. The business's quarterly revenue was down 1.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.73 earnings per share. Equities analysts expect that Dropbox, Inc. will post 1.64 earnings per share for the current fiscal 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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