Royal Bank of Canada Reduces Stock Holdings in Dropbox, Inc. $DBX

Key Points

• Royal Bank of Canada cut its Dropbox stake by 92.7%, selling 5.91 million shares and retaining 461,953 shares worth approximately $10.5 million, or 0.20% of the company.
• Other institutions increased their holdings, including Arrowstreet Capital, Inceptionr and the State of Wyoming; institutional investors collectively own 94.84% of Dropbox.
• Dropbox beat quarterly expectations with $0.75 in adjusted EPS and $631.5 million in revenue, but analyst sentiment remains cautious: the stock has an average “Reduce” rating and a consensus price target of $28.25.

Royal Bank of Canada lowered its stake in shares of Dropbox, Inc. (NASDAQ:DBX - Free Report) by 92.7% during the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 461,953 shares of the company's stock after selling 5,909,172 shares during the quarter. Royal Bank of Canada owned 0.20% of Dropbox worth $10,495,000 at the end of the most recent quarter.

A number of other institutional investors also recently bought and sold shares of the stock. Empowered Funds LLC increased its position in Dropbox by 12.9% during the first quarter. Empowered Funds LLC now owns 116,220 shares of the company's stock valued at $2,641,000 after acquiring an additional 13,244 shares during the last quarter. Lombard Odier Asset Management USA Corp purchased a new stake in shares of Dropbox in the first quarter valued at $266,000. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Dropbox by 12.7% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company's stock worth $193,886,000 after acquiring an additional 960,109 shares during the last quarter. Inceptionr LLC boosted its stake in shares of Dropbox by 155.3% during the 1st quarter. Inceptionr LLC now owns 53,245 shares of the company's stock worth $1,210,000 after purchasing an additional 32,388 shares during the period. Finally, State of Wyoming boosted its stake in shares of Dropbox by 21.6% during the 1st quarter. State of Wyoming now owns 16,792 shares of the company's stock worth $382,000 after purchasing an additional 2,984 shares during the period. 94.84% of the stock is currently owned by institutional investors.

Insider Activity at Dropbox

In other Dropbox news, CEO Ashraf Alkarmi sold 22,700 shares of the stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $27.86, for a total transaction of $632,422.00. Following the sale, the chief executive officer owned 1,080,746 shares of the company's stock, valued at approximately $30,109,583.56. This trade represents a 2.06% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Andrew William Moore sold 8,443 shares of Dropbox stock in a transaction on Monday, May 18th. The shares were sold at an average price of $27.57, for a total value of $232,773.51. Following the completion of the transaction, the director owned 4,737 shares in the company, valued at $130,599.09. This represents a 64.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 130,945 shares of company stock valued at $3,565,129 over the last 90 days. Insiders own 35.48% of the company's stock.

Analyst Ratings Changes

DBX has been the topic of a number of recent analyst reports. Bank of America reissued an "underperform" rating on shares of Dropbox in a research report on Friday. Wall Street Zen cut Dropbox from a "buy" rating to a "hold" rating in a research note on Saturday. William Blair upgraded Dropbox from an "underperform" rating to a "market perform" rating in a report on Friday. Citigroup raised their price target on Dropbox from $28.00 to $33.00 and gave the stock a "neutral" rating in a research note on Friday. Finally, Royal Bank Of Canada restated an "outperform" rating on shares of Dropbox in a report on Monday, June 1st. One analyst has rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus price target of $28.25.

Dropbox Price Performance

Shares of Dropbox stock opened at $34.81 on Friday. The stock has a market cap of $8.12 billion, a price-to-earnings ratio of 19.34, a PEG ratio of 3.81 and a beta of 0.64. The firm's 50-day moving average is $29.08 and its two-hundred day moving average is $26.46. Dropbox, Inc. has a 1 year low of $21.69 and a 1 year high of $35.72.

Dropbox (NASDAQ:DBX - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.75 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.74 by $0.01. The firm had revenue of $631.50 million for the quarter, compared to the consensus estimate of $626.69 million. Dropbox had a net margin of 17.49% and a negative return on equity of 25.65%. The company's quarterly revenue was up .9% on a year-over-year basis. During the same period last year, the firm earned $0.71 earnings per share. On average, equities analysts expect that Dropbox, Inc. will post 2.09 earnings per share for the current year.

Key Headlines Impacting Dropbox

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Dropbox reported fiscal second-quarter 2026 adjusted earnings of $0.75 per share, exceeding the $0.74 consensus estimate and improving from $0.71 a year earlier. Revenue of $631.5 million also topped expectations of $626.7 million. Dropbox Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Management raised its 2026 outlook, while improving core file, sync and sharing trends, growth in paying users and expanding artificial-intelligence capabilities provide potential support for future results. Dropbox Q2 Earnings Beat Estimates on Core FSS, 2026 Outlook Raised
• Positive Sentiment: Dropbox forecast third-quarter revenue of $627 million to $630 million, above the $625.9 million analyst consensus, signaling expectations for continued operating momentum. Dropbox Earnings Conference Call
• Positive Sentiment: The company’s AI-powered search initiatives could help differentiate Dropbox, improve content discovery and create new opportunities to increase engagement and monetization. Can Dropbox Redefine Itself Through AI-Powered Search?
• Neutral Sentiment: Despite the earnings beat, quarterly revenue increased only 0.9% year over year. This reinforces the view that Dropbox must accelerate growth beyond its mature core storage and collaboration business. Dropbox Shares Decline Despite Earnings Beat as Revenue Growth Disappoints

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.

Want to see what other hedge funds are holding DBX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Dropbox, Inc. (NASDAQ:DBX - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source