Wedge Capital Management L L P NC Purchases 86,534 Shares of Dropbox, Inc. $DBX

Key Points

• Wedge Capital Management L L P NC increased its stake in Dropbox, Inc. by 4.0% in Q2, owning 2,227,560 shares worth approximately $63.7 million, making it the firm's 15th largest holding.
• Recent insider trading includes CEO Andrew Houston selling 45,835 shares for $1.38 million, while insiders have collectively sold 314,333 shares worth nearly $8.94 million in the last quarter.
• Dropbox reported Q2 earnings of $0.71 per share, exceeding analysts' expectations, but revenue declined 1.4% year-over-year, leading to a downgrade in stock ratings from some analysts.

Wedge Capital Management L L P NC boosted its position in shares of Dropbox, Inc. (NASDAQ:DBX - Free Report) by 4.0% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 2,227,560 shares of the company's stock after purchasing an additional 86,534 shares during the period. Dropbox comprises about 1.1% of Wedge Capital Management L L P NC's investment portfolio, making the stock its 15th biggest position. Wedge Capital Management L L P NC owned 0.79% of Dropbox worth $63,708,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of the stock. Seizert Capital Partners LLC grew its holdings in Dropbox by 524.8% during the first quarter. Seizert Capital Partners LLC now owns 1,879,374 shares of the company's stock valued at $50,198,000 after purchasing an additional 1,578,566 shares during the period. LSV Asset Management boosted its holdings in shares of Dropbox by 18.4% in the first quarter. LSV Asset Management now owns 7,633,516 shares of the company's stock valued at $203,891,000 after buying an additional 1,187,395 shares during the period. Caisse DE Depot ET Placement DU Quebec boosted its holdings in shares of Dropbox by 38.1% in the first quarter. Caisse DE Depot ET Placement DU Quebec now owns 2,482,705 shares of the company's stock valued at $66,313,000 after buying an additional 684,882 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in shares of Dropbox in the first quarter valued at approximately $6,401,000. Finally, Allianz Asset Management GmbH boosted its holdings in shares of Dropbox by 25.6% in the first quarter. Allianz Asset Management GmbH now owns 981,479 shares of the company's stock valued at $26,215,000 after buying an additional 199,768 shares during the period. 94.84% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on DBX. Wall Street Zen cut shares of Dropbox from a "buy" rating to a "hold" rating in a report on Friday, September 5th. UBS Group cut shares of Dropbox from a "neutral" rating to a "sell" rating and reduced their price target for the company from $29.00 to $27.00 in a report on Thursday. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Dropbox currently has a consensus rating of "Reduce" and an average price target of $29.67.

Dropbox Price Performance

Shares of NASDAQ:DBX traded down $0.18 during midday trading on Friday, hitting $30.61. 10,257,028 shares of the company's stock were exchanged, compared to its average volume of 3,491,269. The stock has a 50 day moving average price of $28.46 and a 200-day moving average price of $28.04. The company has a market cap of $8.26 billion, a PE ratio of 18.66, a price-to-earnings-growth ratio of 4.05 and a beta of 0.70. Dropbox, Inc. has a 12 month low of $24.35 and a 12 month 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 for the quarter, topping the consensus estimate of $0.63 by $0.08. The business had revenue of $625.70 million for the quarter, compared to analysts' expectations of $618.60 million. Dropbox had a net margin of 19.17% and a negative return on equity of 61.31%. The firm's revenue for the quarter was down 1.4% compared to the same quarter last year. During the same period in the previous year, the company earned $0.60 earnings per share. On average, analysts anticipate that Dropbox, Inc. will post 1.64 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Ashraf Alkarmi sold 10,098 shares of the stock in a transaction on Monday, August 18th. The shares were sold at an average price of $27.30, for a total value of $275,675.40. Following the transaction, the insider owned 469,333 shares of the company's stock, valued at $12,812,790.90. This represents a 2.11% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Timothy Regan sold 10,000 shares of the stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $27.94, for a total transaction of $279,400.00. Following the completion of the transaction, the chief financial officer directly owned 516,094 shares in the company, valued at $14,419,666.36. The trade was a 1.90% decrease in their position. The disclosure for this sale can be found here. Insiders sold 314,333 shares of company stock worth $8,938,399 in the last 90 days. 29.95% of the stock is currently owned by company insiders.

Dropbox Company Profile

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.