Dropbox (NASDAQ:DBX) Stock: Insider Andrew Houston Sells 29,500 Shares

Key Points

• Dropbox CEO Andrew Houston sold 29,500 shares at an average price of $35.09, worth approximately $1.04 million, under a pre-arranged Rule 10b5-1 trading plan. He also sold more than 738,000 shares in two earlier transactions.
• Dropbox shares traded at $36.41, near their 52-week high of $38.17, with an $8.22 billion market capitalization. The company recently exceeded quarterly earnings and revenue expectations, reporting $0.75 EPS and $631.5 million in revenue.
• Analyst sentiment remains cautious, with a consensus rating of “Reduce” and a $29.75 price target; institutional investors nevertheless own 94.84% of the company’s stock.

Dropbox, Inc. (NASDAQ:DBX - Get Free Report) CEO Andrew Houston sold 29,500 shares of the stock in a transaction on Monday, October 12th. The shares were sold at an average price of $35.09, for a total value of $1,035,155.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Andrew Houston also recently made the following trade(s):

• On Thursday, October 1st, Andrew Houston sold 354,300 shares of Dropbox stock. The stock was sold at an average price of $34.01, for a total value of $12,049,743.00.
• On Thursday, September 10th, Andrew Houston sold 383,800 shares of Dropbox stock. The stock was sold at an average price of $35.02, for a total value of $13,440,676.00.

Dropbox Stock Performance

NASDAQ:DBX traded up $0.80 during mid-day trading on Thursday, hitting $36.41. The company had a trading volume of 741,297 shares, compared to its average volume of 3,998,057. Dropbox, Inc. has a fifty-two week low of $21.69 and a fifty-two week high of $38.17. The business's fifty day moving average is $34.68 and its two-hundred day moving average is $29.67. The firm has a market cap of $8.22 billion, a P/E ratio of 20.23, a P/E/G ratio of 5.24 and a beta of 0.63.

Dropbox (NASDAQ:DBX - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.75 earnings per share (EPS) 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 analysts' expectations of $626.69 million. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%. The company's revenue was up .9% compared to the same quarter last year. During the same quarter last year, the business earned $0.71 earnings per share. Equities analysts forecast that Dropbox, Inc. will post 1.94 earnings per share for the current year.

Wall Street Analyst Weigh In

Several brokerages recently commented on DBX. Zacks Research raised Dropbox from a "strong sell" rating to a "hold" rating in a research note on Tuesday, October 6th. Royal Bank Of Canada reissued an "outperform" rating and issued a $42.00 target price on shares of Dropbox in a research note on Thursday, September 3rd. Citigroup cut Dropbox from a "neutral" rating to a "sell" rating and decreased their target price for the company from $33.00 to $29.00 in a research note on Thursday, September 24th. Weiss Ratings upgraded Dropbox from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, August 13th. Finally, William Blair raised Dropbox from an "underperform" rating to a "market perform" rating in a research report on Friday, August 7th. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus price target of $29.75.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the stock. Arrowstreet Capital Limited Partnership lifted its position in Dropbox by 12.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company's stock worth $193,886,000 after buying an additional 960,109 shares in the last quarter. Wedge Capital Management L L P NC boosted its stake in shares of 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 buying an additional 627,111 shares during the last quarter. Pacer Advisors Inc. grew its holdings in shares of Dropbox by 2.8% in the 1st quarter. Pacer Advisors Inc. now owns 2,047,966 shares of the company's stock valued at $46,530,000 after acquiring an additional 55,921 shares in the last quarter. KBC Group NV grew its holdings in shares of Dropbox by 12.6% in the 1st quarter. KBC Group NV now owns 944,829 shares of the company's stock valued at $21,466,000 after acquiring an additional 105,876 shares in the last quarter. Finally, Principal Financial Group Inc. grew its holdings in shares of Dropbox by 4.0% in the 1st quarter. Principal Financial Group Inc. now owns 390,386 shares of the company's stock valued at $8,870,000 after acquiring an additional 15,027 shares in the last quarter. Institutional investors own 94.84% of the company's stock.

Dropbox Company Profile

Dropbox, Inc NASDAQ: DBX is a software company that provides cloud-based tools for storing, organizing, sharing and collaborating on files. Its platform enables individuals, businesses and teams to access files across devices, synchronize content and manage collaboration through web, desktop and mobile applications.

The company's product portfolio includes Dropbox for cloud storage and file collaboration, Dropbox Sign for electronic signatures and document workflows, and DocSend for securely sharing and tracking business documents.

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