Pacer Advisors Inc. Sells 4,202,730 Shares of Dropbox, Inc. (NASDAQ:DBX)

Key Points

• Pacer Advisors Inc. significantly reduced its stake in Dropbox, Inc. by 59.3% in the first quarter, holding 2,881,496 shares worth approximately $76.97 million after selling over 4.2 million shares.
• Multiple other hedge funds have increased their positions in Dropbox, including Wedge Capital Management which raised its holdings by 1,640.3%, now owning over 2.1 million shares valued at $57.19 million.
• Dropbox reported a Q1 earnings per share (EPS) of $0.70, surpassing estimates, but its revenue decreased by 1.0% year-over-year at $624.70 million.

Pacer Advisors Inc. lowered its stake in Dropbox, Inc. (NASDAQ:DBX - Free Report) by 59.3% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 2,881,496 shares of the company's stock after selling 4,202,730 shares during the quarter. Pacer Advisors Inc. owned 0.95% of Dropbox worth $76,965,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. True Wealth Design LLC raised its holdings in shares of Dropbox by 191.0% during 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 in the last quarter. Huntington National Bank raised its holdings in shares of Dropbox by 768.9% during the fourth quarter. Huntington National Bank now owns 1,538 shares of the company's stock valued at $46,000 after acquiring an additional 1,361 shares in the last quarter. SBI Securities Co. Ltd. raised its holdings in shares of Dropbox by 33.4% during the first quarter. SBI Securities Co. Ltd. now owns 1,794 shares of the company's stock valued at $48,000 after acquiring an additional 449 shares in the last quarter. Fifth Third Bancorp raised its holdings in shares of Dropbox by 27.3% during the first quarter. Fifth Third Bancorp now owns 2,288 shares of the company's stock valued at $61,000 after acquiring an additional 490 shares in the last quarter. Finally, UMB Bank n.a. raised its holdings in shares of Dropbox by 115.0% during the first quarter. UMB Bank n.a. now owns 2,501 shares of the company's stock valued at $67,000 after acquiring an additional 1,338 shares in the last quarter. Institutional investors own 94.84% of the company's stock.

Dropbox Trading Down 0.8%

DBX stock traded down $0.24 during trading on Tuesday, reaching $27.86. The stock had a trading volume of 635,040 shares, compared to its average volume of 3,765,926. Dropbox, Inc. has a 52 week low of $21.32 and a 52 week high of $33.33. The stock's 50 day moving average is $28.20 and its two-hundred day moving average is $28.47. The firm has a market cap of $7.84 billion, a PE ratio of 18.21, a PEG ratio of 10.92 and a beta of 0.65.

Dropbox (NASDAQ:DBX - Get Free Report) last posted its earnings results on Thursday, May 8th. The company reported $0.70 earnings per share for the quarter, beating analysts' consensus estimates of $0.62 by $0.08. Dropbox had a negative return on equity of 79.66% and a net margin of 18.50%. The company had revenue of $624.70 million for the quarter, compared to the consensus estimate of $619.56 million. During the same quarter in the prior year, the company earned $0.58 earnings per share. Dropbox's revenue was down 1.0% on a year-over-year basis. On average, research analysts anticipate that Dropbox, Inc. will post 1.64 EPS for the current year.

Insider Buying and Selling

In other Dropbox news, Director Karen Peacock sold 7,000 shares of the stock in a transaction dated Tuesday, May 27th. The stock was sold at an average price of $28.53, for a total value of $199,710.00. Following the transaction, the director owned 25,295 shares of the company's stock, valued at approximately $721,666.35. This represents a 21.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Andrew Houston sold 319,000 shares of the stock in a transaction dated Wednesday, June 11th. The shares were sold at an average price of $28.48, for a total value of $9,085,120.00. Following the completion of the transaction, the chief executive officer directly owned 8,266,666 shares in the company, valued at approximately $235,434,647.68. This represents a 3.72% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 466,125 shares of company stock valued at $13,222,130 in the last 90 days. Insiders own 28.59% of the company's stock.

Wall Street Analyst Weigh In

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

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.