Wellington Management Group LLP Decreases Stock Position in Dropbox, Inc. $DBX

Key Points

• Wellington Management Group LLP cut its Dropbox position by 99.6% in the second quarter, selling 2.18 million shares and retaining just 8,218 shares valued at approximately $226,000.
• Other institutional investors increased their stakes, and hedge funds collectively own 94.84% of Dropbox’s outstanding stock. Recent insider activity was also negative, with insiders selling 55,647 shares worth about $1.88 million over three months.
• Analyst sentiment remains cautious: Dropbox has an average “Reduce” rating and a $30.75 target price, despite slightly better-than-expected quarterly earnings of $0.75 per share and revenue of $631.5 million.

Wellington Management Group LLP lessened its holdings in Dropbox, Inc. (NASDAQ:DBX - Free Report) by 99.6% in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 8,218 shares of the company's stock after selling 2,184,782 shares during the quarter. Wellington Management Group LLP's holdings in Dropbox were worth $226,000 at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. LSV Asset Management increased its holdings in shares of Dropbox by 1.1% during the fourth quarter. LSV Asset Management now owns 11,735,641 shares of the company's stock valued at $326,251,000 after acquiring an additional 121,999 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in 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 purchasing an additional 960,109 shares in the last quarter. Jacobs Levy Equity Management Inc. boosted its stake in Dropbox by 1.4% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 5,095,485 shares of the company's stock worth $153,935,000 after purchasing an additional 70,867 shares in the last quarter. Wedge Capital Management L L P NC grew its position in Dropbox by 26.4% during the 2nd quarter. Wedge Capital Management L L P NC now owns 3,005,173 shares of the company's stock worth $82,552,000 after purchasing an additional 627,111 shares during the last quarter. Finally, Allianz Asset Management GmbH grew its position in Dropbox by 28.1% during the 4th quarter. Allianz Asset Management GmbH now owns 2,720,372 shares of the company's stock worth $75,626,000 after purchasing an additional 596,440 shares during the last quarter. Hedge funds and other institutional investors own 94.84% of the company's stock.

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Zacks Research cut shares of Dropbox from a "hold" rating to a "strong sell" rating in a report on Wednesday, August 19th. Wall Street Zen lowered shares of Dropbox from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Citigroup upped their target price on Dropbox from $28.00 to $33.00 and gave the company a "neutral" rating in a research report on Friday, August 7th. Bank of America restated an "underperform" rating on shares of Dropbox in a research note on Friday, August 7th. Finally, Weiss Ratings raised Dropbox from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, August 13th. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of "Reduce" and an average target price of $30.75.

Insider Activity at Dropbox

In other news, Director Lisa Campbell sold 4,598 shares of the company's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $34.78, for a total value of $159,918.44. Following the sale, the director owned 19,471 shares in the company, valued at $677,201.38. This represents a 19.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Sarah Schubach sold 1,631 shares of the firm's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $35.50, for a total value of $57,900.50. Following the sale, the chief accounting officer directly owned 115,150 shares in the company, valued at approximately $4,087,825. This trade represents a 1.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 55,647 shares of company stock worth $1,876,439 in the last three months. Company insiders own 35.48% of the company's stock.

Dropbox Trading Up 1.5%

DBX opened at $35.56 on Friday. Dropbox, Inc. has a 12-month low of $21.69 and a 12-month high of $36.37. The firm has a 50 day moving average of $32.83 and a two-hundred day moving average of $28.10. The firm has a market capitalization of $8.03 billion, a PE ratio of 19.76, a P/E/G ratio of 5.24 and a beta of 0.65.

Dropbox (NASDAQ:DBX - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.75 earnings per share for the quarter, topping analysts' consensus estimates of $0.74 by $0.01. The firm had revenue of $631.50 million for the quarter, compared to analyst estimates of $626.69 million. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. The business's quarterly revenue was up .9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.71 earnings per share. As a group, analysts predict that Dropbox, Inc. will post 1.94 EPS for the current fiscal year.

Dropbox Profile

Dropbox, Inc NASDAQ: DBX is a technology company that provides cloud-based file storage, synchronization, sharing and collaboration services. Its platform enables individuals, businesses and organizations to store files online, access them across connected devices, and collaborate on documents and other digital content.

The company's offerings include Dropbox for file management and collaboration, Dropbox Paper for shared document and project work, Dropbox Sign for electronic signatures, and DocSend for securely sharing and tracking business documents.

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