Dropbox (NASDAQ:DBX) CEO Sells 383,800 Shares of Stock

Key Points

• CEO Andrew Houston sold 383,800 Dropbox shares for approximately $13.44 million at an average price of $35.02 under a pre-arranged Rule 10b5-1 trading plan.
• Dropbox shares rose 4.9% to $37.31, near their 52-week high of $37.39. The company recently beat quarterly earnings and revenue expectations, reporting $0.75 EPS and $631.5 million in revenue.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $30.75, despite institutional investors owning approximately 94.84% of the stock.

Dropbox, Inc. (NASDAQ:DBX - Get Free Report) CEO Andrew Houston sold 383,800 shares of Dropbox stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $35.02, for a total value of $13,440,676.00. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Dropbox Stock Up 4.9%

Shares of DBX stock traded up $1.75 during trading on Monday, hitting $37.31. The company had a trading volume of 4,240,255 shares, compared to its average volume of 3,958,501. The stock's 50-day moving average is $32.83 and its two-hundred day moving average is $28.12. The stock has a market capitalization of $8.42 billion, a price-to-earnings ratio of 20.73, a price-to-earnings-growth ratio of 5.24 and a beta of 0.65. Dropbox, Inc. has a 52 week low of $21.69 and a 52 week high of $37.39.

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

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on DBX. Bank of America restated an "underperform" rating on shares of Dropbox in a research report on Friday, August 7th. Citigroup boosted their price objective on shares of Dropbox from $28.00 to $33.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $42.00 target price on shares of Dropbox in a report on Thursday, September 3rd. Wall Street Zen cut shares of Dropbox from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Finally, Weiss Ratings raised shares of Dropbox from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, August 13th. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, Dropbox presently has a consensus rating of "Reduce" and an average target price of $30.75.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. LSV Asset Management lifted its holdings in Dropbox by 1.1% in the 4th quarter. LSV Asset Management now owns 11,735,641 shares of the company's stock worth $326,251,000 after buying an additional 121,999 shares during the period. Arrowstreet Capital Limited Partnership raised its holdings in shares of Dropbox by 12.7% during the first quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company's stock valued at $193,886,000 after acquiring an additional 960,109 shares in the last quarter. California State Teachers Retirement System raised its holdings in shares of Dropbox by 2,565.8% during the second quarter. California State Teachers Retirement System now owns 5,504,631 shares of the company's stock valued at $151,212,000 after acquiring an additional 5,298,138 shares in the last quarter. Wedge Capital Management L L P NC lifted its stake in Dropbox by 26.4% in the second quarter. Wedge Capital Management L L P NC now owns 3,005,173 shares of the company's stock worth $82,552,000 after acquiring an additional 627,111 shares during the period. Finally, Allianz Asset Management GmbH lifted its stake in Dropbox by 28.1% in the fourth quarter. Allianz Asset Management GmbH now owns 2,720,372 shares of the company's stock worth $75,626,000 after acquiring an additional 596,440 shares during the period. Hedge funds and other institutional investors own 94.84% of the company's stock.

Dropbox Company 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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