Dropbox (NASDAQ:DBX) Rating Lowered to “Hold” at Wall Street Zen

Dropbox (NASDAQ:DBX) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Sunday.

A number of other equities research analysts also recently commented on the stock. UBS Group downgraded shares of Dropbox from a “neutral” rating to a “sell” rating and reduced their price objective for the company from $29.00 to $27.00 in a research report on Thursday, September 18th. Weiss Ratings restated a “hold (c+)” rating on shares of Dropbox in a research report on Wednesday, October 8th. Three research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Dropbox presently has a consensus rating of “Reduce” and an average target price of $29.67.

Dropbox Stock Down 0.9%

Shares of NASDAQ:DBX opened at $29.11 on Friday. The company has a market cap of $7.86 billion, a P/E ratio of 17.75, a PEG ratio of 3.87 and a beta of 0.67. Dropbox has a 52 week low of $24.42 and a 52 week high of $33.33. The company has a 50-day moving average price of $29.69 and a 200 day moving average price of $28.63.

Dropbox (NASDAQ:DBX) last announced its quarterly earnings data on Thursday, August 7th. The company reported $0.71 EPS for the quarter, beating analysts’ consensus estimates of $0.63 by $0.08. The firm had revenue of $625.70 million during the quarter, compared to the consensus estimate of $618.60 million. Dropbox had a net margin of 19.17% and a negative return on equity of 61.31%. The firm’s revenue was down 1.4% compared to the same quarter last year. During the same quarter last year, the firm earned $0.60 earnings per share. Analysts expect that Dropbox will post 1.64 EPS for the current year.

Insider Buying and Selling at Dropbox

In related news, insider Ashraf Alkarmi sold 10,098 shares of Dropbox stock in a transaction on Monday, August 18th. The shares were sold at an average price of $27.30, for a total transaction of $275,675.40. Following the transaction, the insider owned 469,333 shares in the company, valued at approximately $12,812,790.90. The trade was a 2.11% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CTO Ali Dasdan sold 12,812 shares of Dropbox stock in a transaction on Monday, September 8th. The shares were sold at an average price of $30.00, for a total transaction of $384,360.00. Following the transaction, the chief technology officer owned 551,060 shares in the company, valued at $16,531,800. The trade was a 2.27% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 316,132 shares of company stock worth $9,178,284. Corporate insiders own 28.59% of the company’s stock.

Hedge Funds Weigh In On Dropbox

Institutional investors have recently added to or reduced their stakes in the company. Wealth Enhancement Advisory Services LLC lifted its holdings in Dropbox by 11.9% in the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 48,224 shares of the company’s stock worth $1,350,000 after buying an additional 5,136 shares in the last quarter. Farther Finance Advisors LLC lifted its holdings in Dropbox by 22.3% in the 2nd quarter. Farther Finance Advisors LLC now owns 9,012 shares of the company’s stock worth $258,000 after buying an additional 1,641 shares in the last quarter. Rehmann Capital Advisory Group acquired a new position in Dropbox in the 1st quarter worth $675,000. Acadian Asset Management LLC lifted its holdings in Dropbox by 1.9% in the 1st quarter. Acadian Asset Management LLC now owns 8,544,978 shares of the company’s stock worth $228,202,000 after buying an additional 157,148 shares in the last quarter. Finally, UniSuper Management Pty Ltd acquired a new position in Dropbox in the 1st quarter worth $2,027,000. Institutional investors and hedge funds own 94.84% of the company’s stock.

About Dropbox

Dropbox, Inc provides a content collaboration platform worldwide. The company's platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. It serves customers in professional services, technology, media, education, industrial, consumer and retail, and financial services industries.