Insider Selling: Dropbox (NASDAQ:DBX) CEO Sells 111,166 Shares of Stock

Key Points

• Andrew Houston, Dropbox CEO, sold 111,166 shares on April 1 at an average price of $22.89 for about $2.54M under a pre-arranged Rule 10b5‑1 plan, trimming his holdings to 8,266,666 shares (≈$189.2M), a 1.33% reduction.
• The sale continues a string of insider disposals this year (March, February and January) while DBX trades near $23.40 with a $5.64B market cap and an average analyst consensus of “Reduce” and a $27.50 price target.

Dropbox, Inc. (NASDAQ:DBX - Get Free Report) CEO Andrew Houston sold 111,166 shares of the company's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $22.89, for a total transaction of $2,544,589.74. Following the transaction, the chief executive officer owned 8,266,666 shares in the company, valued at approximately $189,223,984.74. This trade represents a 1.33% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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 Monday, March 2nd, Andrew Houston sold 109,498 shares of Dropbox stock. The shares were sold at an average price of $24.94, for a total transaction of $2,730,880.12.
• On Monday, February 2nd, Andrew Houston sold 164,502 shares of Dropbox stock. The stock was sold at an average price of $25.66, for a total transaction of $4,221,121.32.
• On Monday, January 12th, Andrew Houston sold 23,818 shares of Dropbox stock. The stock was sold at an average price of $27.51, for a total transaction of $655,233.18.
• On Friday, January 9th, Andrew Houston sold 36,182 shares of Dropbox stock. The shares were sold at an average price of $27.54, for a total transaction of $996,452.28.

Dropbox Stock Performance

DBX stock remained flat at $23.40 during trading on Friday. 2,843,646 shares of the company traded hands, compared to its average volume of 3,403,643. The company has a 50 day simple moving average of $24.93 and a 200-day simple moving average of $27.57. Dropbox, Inc. has a 1 year low of $22.00 and a 1 year high of $32.40. The company has a market cap of $5.64 billion, a PE ratio of 12.58, a price-to-earnings-growth ratio of 1.63 and a beta of 0.61.

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

Institutional Trading of Dropbox

A number of institutional investors and hedge funds have recently modified their holdings of DBX. Corient Private Wealth LLC raised its position in shares of Dropbox by 166.6% in the 4th quarter. Corient Private Wealth LLC now owns 61,456 shares of the company's stock valued at $1,708,000 after acquiring an additional 38,402 shares during the period. Caitong International Asset Management Co. Ltd acquired a new position in Dropbox during the fourth quarter valued at approximately $103,000. DGS Capital Management LLC increased its stake in Dropbox by 12.9% in the fourth quarter. DGS Capital Management LLC now owns 34,360 shares of the company's stock valued at $955,000 after purchasing an additional 3,933 shares in the last quarter. Kera Capital Partners Inc. raised its holdings in Dropbox by 79.6% in the fourth quarter. Kera Capital Partners Inc. now owns 23,251 shares of the company's stock worth $592,000 after purchasing an additional 10,306 shares during the period. Finally, Mercer Global Advisors Inc. ADV raised its holdings in Dropbox by 37.0% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 56,772 shares of the company's stock worth $1,578,000 after purchasing an additional 15,318 shares during the period. 94.84% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

DBX has been the topic of several recent research reports. JPMorgan Chase & Co. reduced their target price on shares of Dropbox from $29.00 to $25.00 and set a "neutral" rating on the stock in a research note on Friday, February 20th. Royal Bank Of Canada dropped their price target on shares of Dropbox from $35.00 to $30.00 and set an "outperform" rating for the company in a research note on Friday, February 20th. UBS Group reduced their price objective on shares of Dropbox from $27.00 to $23.00 and set a "sell" rating on the stock in a research note on Friday, February 20th. William Blair reaffirmed an "underperform" rating on shares of Dropbox in a report on Monday, March 23rd. Finally, Wall Street Zen cut shares of Dropbox from a "buy" rating to a "hold" rating in a research report on Friday, January 23rd. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus price target of $27.50.

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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