Russell Investments Group Ltd. Decreases Position in Dropbox, Inc. $DBX

Key Points

• Russell Investments Group Ltd. has reduced its stake in Dropbox, Inc. by 23.0%, owning approximately 1,854,660 shares valued at $49.45 million after selling 555,534 shares in the first quarter.
• Other hedge funds, including LSV Asset Management and AQR Capital Management, have increased their positions in Dropbox, indicating varied confidence among institutional investors.
• Despite a slight decline in quarterly revenue compared to last year, Dropbox surpassed earnings expectations, reporting $0.71 earnings per share against the consensus estimate of $0.63.

Russell Investments Group Ltd. cut its stake in Dropbox, Inc. (NASDAQ:DBX - Free Report) by 23.0% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,854,660 shares of the company's stock after selling 555,534 shares during the period. Russell Investments Group Ltd. owned 0.61% of Dropbox worth $49,448,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of the stock. SG Americas Securities LLC bought a new position in Dropbox during the 1st quarter valued at about $647,000. Rehmann Capital Advisory Group bought a new stake in shares of Dropbox in the first quarter worth approximately $675,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Dropbox by 8.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,761,252 shares of the company's stock worth $52,908,000 after acquiring an additional 137,916 shares during the period. Envestnet Asset Management Inc. grew its stake in shares of Dropbox by 31.9% in the fourth quarter. Envestnet Asset Management Inc. now owns 39,526 shares of the company's stock worth $1,187,000 after acquiring an additional 9,570 shares during the period. Finally, Commerce Bank grew its stake in shares of Dropbox by 94.9% in the first quarter. Commerce Bank now owns 203,052 shares of the company's stock worth $5,424,000 after acquiring an additional 98,867 shares during the period. 94.84% of the stock is currently owned by hedge funds and other institutional investors.

Dropbox Stock Performance

Shares of Dropbox stock traded down $0.30 on Monday, hitting $27.53. 3,359,312 shares of the company's stock were exchanged, compared to its average volume of 3,772,283. The company has a 50-day simple moving average of $27.70 and a 200-day simple moving average of $28.07. The stock has a market capitalization of $7.43 billion, a PE ratio of 16.77, a PEG ratio of 3.74 and a beta of 0.64. Dropbox, Inc. has a 1 year low of $22.72 and a 1 year high of $33.33.

Dropbox (NASDAQ:DBX - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported $0.71 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.63 by $0.08. Dropbox had a net margin of 19.17% and a negative return on equity of 61.31%. The company had revenue of $625.70 million for the quarter, compared to the consensus estimate of $618.60 million. During the same quarter in the prior year, the firm earned $0.60 earnings per share. Dropbox's revenue was down 1.4% on a year-over-year basis. On average, analysts expect that Dropbox, Inc. will post 1.64 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of analysts have recently commented on DBX shares. UBS Group reduced their price target on shares of Dropbox from $31.00 to $29.00 and set a "neutral" rating for the company in a research note on Friday, August 8th. Citigroup lifted their price target on shares of Dropbox from $30.00 to $32.00 and gave the stock a "neutral" rating in a research note on Friday, May 9th.

Insider Activity

In other Dropbox news, insider Ashraf Alkarmi sold 10,098 shares of the stock in a transaction that occurred on Friday, June 13th. The stock was sold at an average price of $28.10, for a total transaction of $283,753.80. Following the transaction, the insider owned 492,856 shares in the company, valued at approximately $13,849,253.60. This represents a 2.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Andrew Houston sold 319,000 shares of the company's stock in a transaction that occurred on Wednesday, June 11th. The stock was sold at an average price of $28.48, for a total value of $9,085,120.00. Following the transaction, the chief executive officer directly owned 8,266,666 shares of the company's stock, valued at approximately $235,434,647.68. The trade was a 3.72% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 450,598 shares of company stock worth $12,770,529 over the last three months. Corporate insiders own 28.59% of the company's stock.

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.