Dropbox (NASDAQ:DBX) Trading Down 5.4% – Here’s What Happened

Dropbox, Inc. (NASDAQ:DBX) dropped 5.4% during mid-day trading on Wednesday . The stock traded as low as $27.78 and last traded at $27.8420. Approximately 1,284,749 shares changed hands during trading, a decline of 64% from the average daily volume of 3,596,910 shares. The stock had previously closed at $29.42.

Analyst Ratings Changes

A number of brokerages have commented on DBX. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Dropbox in a report on Wednesday, October 8th. UBS Group downgraded shares of Dropbox from a “neutral” rating to a “sell” rating and cut their price objective for the company from $29.00 to $27.00 in a research report on Thursday, September 18th. Wall Street Zen upgraded Dropbox from a “hold” rating to a “buy” rating in a research note on Saturday, November 8th. Finally, Royal Bank Of Canada lifted their target price on Dropbox from $35.00 to $38.00 and gave the company an “outperform” rating in a research report on Friday, November 7th. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Dropbox currently has a consensus rating of “Hold” and a consensus target price of $31.75.

Dropbox Stock Performance

The firm has a market capitalization of $7.26 billion, a PE ratio of 15.86, a PEG ratio of 2.48 and a beta of 0.63. The company has a fifty day moving average price of $29.44 and a 200-day moving average price of $28.92.

Dropbox (NASDAQ:DBX) last posted its earnings results on Thursday, November 6th. The company reported $0.74 earnings per share for the quarter, beating analysts’ consensus estimates of $0.64 by $0.10. The firm had revenue of $634.40 million during the quarter, compared to analyst estimates of $623.59 million. Dropbox had a net margin of 19.87% and a negative return on equity of 49.51%. Dropbox’s revenue for the quarter was down .7% compared to the same quarter last year. During the same period last year, the firm posted $0.60 earnings per share. On average, equities analysts predict that Dropbox, Inc. will post 1.64 earnings per share for the current year.

Insider Transactions at Dropbox

In other news, CFO Timothy Regan sold 1,500 shares of the company’s stock in a transaction dated Friday, November 28th. The shares were sold at an average price of $29.64, for a total transaction of $44,460.00. Following the sale, the chief financial officer directly owned 439,147 shares in the company, valued at approximately $13,016,317.08. This represents a 0.34% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO Ali Dasdan sold 5,666 shares of the stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $30.00, for a total transaction of $169,980.00. Following the completion of the transaction, the chief technology officer directly owned 520,474 shares of the company’s stock, valued at approximately $15,614,220. The trade was a 1.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 362,915 shares of company stock worth $10,793,706. 28.59% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Dropbox

Large investors have recently modified their holdings of the stock. Cetera Investment Advisers lifted its position in Dropbox by 29.9% in the first quarter. Cetera Investment Advisers now owns 22,218 shares of the company’s stock worth $593,000 after buying an additional 5,117 shares during the last quarter. Natixis Advisors LLC raised its stake in shares of Dropbox by 32.0% in the first quarter. Natixis Advisors LLC now owns 14,410 shares of the company’s stock valued at $385,000 after acquiring an additional 3,497 shares during the period. PNC Financial Services Group Inc. lifted its holdings in shares of Dropbox by 12.0% in the 1st quarter. PNC Financial Services Group Inc. now owns 8,146 shares of the company’s stock worth $218,000 after acquiring an additional 874 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its stake in shares of Dropbox by 1.2% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 2,950,273 shares of the company’s stock worth $78,802,000 after purchasing an additional 36,268 shares during the period. Finally, Chicago Partners Investment Group LLC purchased a new position in shares of Dropbox during the 1st quarter worth about $267,000. Institutional investors 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.