Insider Selling: Dropbox (NASDAQ:DBX) CAO Sells 1,415 Shares of Stock

Key Points

• CAO Sarah Elizabeth Schubach sold 1,415 Dropbox shares on April 15 at an average price of $22.99 under a pre-arranged Rule 10b5-1 plan, trimming her stake by about 1.02% to 137,875 shares after several similar sales earlier in Feb–Mar.
• Dropbox shares trade near $24.27 with a $5.85B market cap; the company beat EPS estimates ($0.68 vs. $0.66) while revenue was down 1.1% year-over-year, and analysts hold a consensus "Reduce" rating with an average target of $27.50 following recent downgrades.

Dropbox, Inc. (NASDAQ:DBX - Get Free Report) CAO Sarah Elizabeth Schubach sold 1,415 shares of the stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $22.99, for a total value of $32,530.85. Following the transaction, the chief accounting officer owned 137,875 shares in the company, valued at approximately $3,169,746.25. This trade represents a 1.02% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Sarah Elizabeth Schubach also recently made the following trade(s):

• On Tuesday, March 31st, Sarah Elizabeth Schubach sold 1,416 shares of Dropbox stock. The shares were sold at an average price of $22.60, for a total value of $32,001.60.
• On Monday, March 16th, Sarah Elizabeth Schubach sold 1,415 shares of Dropbox stock. The shares were sold at an average price of $25.76, for a total value of $36,450.40.
• On Monday, March 2nd, Sarah Elizabeth Schubach sold 1,415 shares of Dropbox stock. The shares were sold at an average price of $24.76, for a total value of $35,035.40.
• On Wednesday, February 18th, Sarah Elizabeth Schubach sold 1,416 shares of Dropbox stock. The stock was sold at an average price of $24.49, for a total value of $34,677.84.

Dropbox Stock Up 0.7%

Shares of DBX traded up $0.17 during midday trading on Friday, reaching $24.27. 3,241,868 shares of the stock were exchanged, compared to its average volume of 3,978,265. The stock's 50 day simple moving average is $24.41 and its 200 day simple moving average is $27.00. The company has a market cap of $5.85 billion, a P/E ratio of 13.05, a PEG ratio of 1.67 and a beta of 0.61. Dropbox, Inc. has a twelve month low of $21.69 and a twelve month high of $32.40.

Dropbox (NASDAQ:DBX - Get Free Report) last released its quarterly earnings results on Thursday, February 19th. The company reported $0.68 EPS for the quarter, beating the consensus estimate of $0.66 by $0.02. Dropbox had a net margin of 20.17% and a negative return on equity of 37.47%. The business had revenue of $636.20 million for the quarter, compared to the consensus estimate of $627.83 million. During the same period in the prior year, the company posted $0.73 earnings per share. Dropbox's revenue was down 1.1% compared to the same quarter last year. As a group, analysts predict that Dropbox, Inc. will post 1.64 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on DBX. William Blair reissued an "underperform" rating on shares of Dropbox in a research report on Monday, March 23rd. Wall Street Zen cut Dropbox from a "buy" rating to a "hold" rating in a report on Friday, January 23rd. UBS Group cut their target price on Dropbox from $27.00 to $23.00 and set a "sell" rating for the company in a research report on Friday, February 20th. JPMorgan Chase & Co. reduced their target price on Dropbox from $29.00 to $25.00 and set a "neutral" rating on the stock in a report on Friday, February 20th. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of Dropbox in a research report on Wednesday, January 21st. One research analyst has rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Dropbox has a consensus rating of "Reduce" and an average price target of $27.50.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Rossby Financial LCC raised its holdings in shares of Dropbox by 128.5% during the 3rd quarter. Rossby Financial LCC now owns 937 shares of the company's stock worth $28,000 after buying an additional 527 shares in the last quarter. Palisade Asset Management LLC acquired a new stake in Dropbox in the third quarter valued at about $30,000. First Horizon Corp acquired a new stake in Dropbox in the third quarter valued at about $31,000. Kestra Advisory Services LLC bought a new position in Dropbox in the fourth quarter valued at about $31,000. Finally, Larson Financial Group LLC grew its position in Dropbox by 228.0% in the fourth quarter. Larson Financial Group LLC now owns 1,138 shares of the company's stock valued at $32,000 after acquiring an additional 791 shares during the last quarter. 94.84% of the stock is owned by institutional investors.

About Dropbox

Dropbox, Inc NASDAQ: DBX is a leading provider of cloud-based file storage, collaboration, and productivity tools. Founded in 2007 and headquartered in San Francisco, California, the company offers a suite of services designed to help individuals and organizations securely store, share, and manage digital content. Dropbox has grown from a simple file-syncing application into an integrated collaboration platform used by millions of customers around the globe.

At its core, Dropbox provides cloud storage plans tailored for consumers and businesses.

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