Dropbox, Inc. (NASDAQ:DBX) Given Consensus Recommendation of “Reduce” by Brokerages

Shares of Dropbox, Inc. (NASDAQ:DBX) have received an average rating of “Reduce” from the seven analysts that are currently covering the stock, Marketbeat reports. Two investment analysts have rated the stock with a sell recommendation, four have assigned a hold recommendation and one has assigned a buy recommendation to the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $28.25.

A number of research firms have issued reports on DBX. Bank of America reissued an “underperform” rating on shares of Dropbox in a research report on Friday, August 7th. Wall Street Zen lowered Dropbox from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Weiss Ratings raised shares of Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, August 13th. Royal Bank Of Canada restated an “outperform” rating on shares of Dropbox in a report on Monday, June 1st. Finally, William Blair upgraded shares of Dropbox from an “underperform” rating to a “market perform” rating in a research note on Friday, August 7th.

Dropbox Stock Performance

DBX stock opened at $33.87 on Friday. Dropbox has a 1 year low of $21.69 and a 1 year high of $36.30. The stock’s 50 day moving average price is $30.00 and its 200 day moving average price is $26.86. The firm has a market cap of $7.64 billion, a P/E ratio of 18.82, a PEG ratio of 4.70 and a beta of 0.64.

Dropbox (NASDAQ:DBX) last announced its earnings results on Thursday, August 6th. The company reported $0.75 earnings per share for the quarter, beating the consensus estimate of $0.74 by $0.01. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. The firm had revenue of $631.50 million during the quarter, compared to the consensus estimate of $626.69 million. During the same quarter in the previous year, the company posted $0.71 EPS. The firm’s revenue for the quarter was up .9% on a year-over-year basis. On average, research analysts predict that Dropbox will post 2.09 earnings per share for the current year.

Insiders Place Their Bets

In other news, CAO Sarah Elizabeth Schubach sold 1,632 shares of the business’s stock in a transaction on Friday, July 31st. The shares were sold at an average price of $31.61, for a total transaction of $51,587.52. Following the transaction, the chief accounting officer directly owned 124,266 shares of the company’s stock, valued at approximately $3,928,048.26. The trade was a 1.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ashraf Alkarmi sold 22,700 shares of the company’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $27.86, for a total transaction of $632,422.00. Following the completion of the transaction, the chief executive officer owned 1,080,746 shares of the company’s stock, valued at $30,109,583.56. This trade represents a 2.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 32,248 shares of company stock worth $914,616 in the last 90 days. 35.48% of the stock is owned by company insiders.

Institutional Trading of Dropbox

Several large investors have recently modified their holdings of DBX. Palisade Asset Management LLC bought a new position in Dropbox during the 3rd quarter valued at $30,000. Kestra Advisory Services LLC bought a new stake in shares of Dropbox in the 4th quarter worth about $31,000. Larson Financial Group LLC increased its position in shares of Dropbox by 228.0% in the 4th quarter. Larson Financial Group LLC now owns 1,138 shares of the company’s stock worth $32,000 after purchasing an additional 791 shares during the last quarter. Geneos Wealth Management Inc. raised its stake in shares of Dropbox by 78.0% in the 2nd quarter. Geneos Wealth Management Inc. now owns 1,273 shares of the company’s stock valued at $36,000 after purchasing an additional 558 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd bought a new position in shares of Dropbox during the fourth quarter worth about $38,000. 94.84% of the stock is currently owned by institutional investors and hedge funds.

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.