Dropbox (NASDAQ:DBX) Stock: Insider Andrew Houston Sells 354,300 Shares

Key Points

• CEO Andrew Houston sold 354,300 Dropbox shares for approximately $12.05 million at an average price of $34.01 under a pre-arranged Rule 10b5-1 trading plan. He also sold 383,800 shares in September for about $13.44 million.
• Dropbox reported quarterly EPS of $0.75, slightly exceeding estimates, while revenue of $631.5 million also topped forecasts and increased 0.9% year over year.
• Analyst sentiment is cautious: eight analysts collectively give the stock an average “Reduce” rating and a $29.75 target, below its reported trading price of $34.37. Institutional investors own 94.84% of the company.

Dropbox, Inc. (NASDAQ:DBX - Get Free Report) CEO Andrew Houston sold 354,300 shares of Dropbox stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $34.01, for a total value of $12,049,743.00. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• 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

Shares of NASDAQ DBX traded up $0.47 during trading on Monday, hitting $34.37. The company had a trading volume of 4,075,531 shares, compared to its average volume of 4,053,537. Dropbox, Inc. has a 12 month low of $21.69 and a 12 month high of $38.17. The firm has a market capitalization of $7.76 billion, a P/E ratio of 19.09, a price-to-earnings-growth ratio of 4.99 and a beta of 0.63. The stock has a 50 day simple moving average of $34.43 and a 200 day simple moving average of $29.09.

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

Hedge Funds Weigh In On Dropbox

Hedge funds have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. increased its holdings in Dropbox by 1.8% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 26,254 shares of the company's stock valued at $730,000 after acquiring an additional 466 shares during the last quarter. State of Michigan Retirement System boosted its holdings in shares of Dropbox by 1.9% during the 1st quarter. State of Michigan Retirement System now owns 42,000 shares of the company's stock valued at $954,000 after purchasing an additional 800 shares during the last quarter. EverSource Wealth Advisors LLC grew its position in shares of Dropbox by 68.1% during the first quarter. EverSource Wealth Advisors LLC now owns 2,052 shares of the company's stock valued at $47,000 after purchasing an additional 831 shares in the last quarter. Oregon Public Employees Retirement Fund grew its position in shares of Dropbox by 3.1% during the first quarter. Oregon Public Employees Retirement Fund now owns 35,780 shares of the company's stock valued at $813,000 after purchasing an additional 1,090 shares in the last quarter. Finally, PNC Financial Services Group Inc. increased its holdings in shares of Dropbox by 17.1% in the first quarter. PNC Financial Services Group Inc. now owns 9,278 shares of the company's stock worth $211,000 after purchasing an additional 1,357 shares during the last quarter. Hedge funds and other institutional investors own 94.84% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on DBX. Weiss Ratings raised shares of Dropbox from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, August 13th. Citigroup downgraded shares of Dropbox from a "neutral" rating to a "sell" rating and dropped their target price for the stock from $33.00 to $29.00 in a report on Thursday, September 24th. Bank of America reiterated an "underperform" rating on shares of Dropbox in a research note on Friday, August 7th. Royal Bank Of Canada reissued an "outperform" rating and set a $42.00 price target on shares of Dropbox in a report on Thursday, September 3rd. Finally, Wall Street Zen downgraded Dropbox from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Reduce" and an average target price of $29.75.

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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