Russell Investments Group Ltd. Decreases Holdings in Dropbox, Inc. (NASDAQ: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 shares of Dropbox, Inc. (NASDAQ:DBX - Free Report) by 23.0% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 1,854,660 shares of the company's stock after selling 555,534 shares during the period. Russell Investments Group Ltd. owned about 0.61% of Dropbox worth $49,448,000 as of its most recent SEC filing.

Other hedge funds have also added to or reduced their stakes in the company. LSV Asset Management grew its position in shares of Dropbox by 18.4% during the 1st quarter. LSV Asset Management now owns 7,633,516 shares of the company's stock valued at $203,891,000 after acquiring an additional 1,187,395 shares during the period. AQR Capital Management LLC grew its position in shares of Dropbox by 3.0% during the 4th quarter. AQR Capital Management LLC now owns 3,332,516 shares of the company's stock valued at $99,842,000 after acquiring an additional 97,551 shares during the period. Charles Schwab Investment Management Inc. grew its position in shares of Dropbox by 1.2% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 2,950,273 shares of the company's stock valued at $78,802,000 after acquiring an additional 36,268 shares during the period. Dimensional Fund Advisors LP grew its position in shares of Dropbox by 3.2% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,646,502 shares of the company's stock valued at $79,505,000 after acquiring an additional 82,284 shares during the period. Finally, First Trust Advisors LP grew its position in shares of Dropbox by 12.2% during the 4th quarter. First Trust Advisors LP now owns 2,415,093 shares of the company's stock valued at $72,549,000 after acquiring an additional 262,871 shares during the period. 94.84% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

DBX has been the subject of a number of recent research reports. Citigroup boosted their price objective on shares of Dropbox from $30.00 to $32.00 and gave the company a "neutral" rating in a research report on Friday, May 9th. UBS Group cut their price objective on shares of Dropbox from $31.00 to $29.00 and set a "neutral" rating for the company in a research report on Friday, August 8th.

Insider Buying and Selling

In related news, insider William T. Yoon sold 5,449 shares of the company's stock in a transaction on Friday, May 16th. The shares were sold at an average price of $28.94, for a total value of $157,694.06. Following the completion of the transaction, the insider owned 245,837 shares of the company's stock, valued at approximately $7,114,522.78. This represents a 2.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Ashraf Alkarmi sold 10,098 shares of the company's stock in a transaction 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 completion of the transaction, the insider directly owned 492,856 shares of the company's stock, valued at $13,849,253.60. This represents a 2.01% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 463,625 shares of company stock worth $13,147,530 in the last three months. Corporate insiders own 29.95% of the company's stock.

Dropbox Stock Performance

Shares of Dropbox stock opened at $28.13 on Thursday. The company has a market capitalization of $7.92 billion, a P/E ratio of 17.15, a P/E/G ratio of 3.68 and a beta of 0.64. The company has a fifty day moving average of $27.77 and a 200 day moving average of $28.19. Dropbox, Inc. has a fifty-two week low of $22.32 and a fifty-two week high of $33.33.

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

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.

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