Dropbox (NASDAQ:DBX) Lowered to “Strong Sell” Rating by Zacks Research

Dropbox (NASDAQ:DBX) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Wednesday,Zacks.com reports.

Other analysts also recently issued research reports about the company. Royal Bank Of Canada reiterated an “outperform” rating on shares of Dropbox in a research report on Monday, June 1st. Wall Street Zen lowered Dropbox from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Weiss Ratings raised Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, August 13th. Citigroup upped their price target on Dropbox from $28.00 to $33.00 and gave the company a “neutral” rating in a research report on Friday, August 7th. Finally, Bank of America reiterated an “underperform” rating on shares of Dropbox in a research note on Friday, August 7th. One analyst has rated the stock with a Buy rating, four have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus price target of $28.25.

Dropbox Price Performance

DBX stock opened at $34.00 on Wednesday. The company has a 50-day moving average of $30.26 and a two-hundred day moving average of $26.98. Dropbox has a 52-week low of $21.69 and a 52-week high of $36.30. The stock has a market capitalization of $7.67 billion, a price-to-earnings ratio of 18.89, a price-to-earnings-growth ratio of 5.00 and a beta of 0.64.

Dropbox (NASDAQ:DBX) last released its earnings results on Thursday, August 6th. The company reported $0.75 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.74 by $0.01. The firm had revenue of $631.50 million for the quarter, compared to analyst estimates of $626.69 million. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%.The company’s revenue was up .9% on a year-over-year basis. During the same quarter last year, the firm posted $0.71 EPS. Equities analysts expect that Dropbox will post 1.94 EPS for the current fiscal year.

Insider Activity at Dropbox

In other news, CAO Sarah Elizabeth Schubach sold 1,632 shares of the stock in a transaction on Friday, July 31st. The stock was sold at an average price of $31.61, for a total transaction of $51,587.52. Following the sale, the chief accounting officer owned 124,266 shares in the company, valued at approximately $3,928,048.26. This represents a 1.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Karen Peacock sold 2,000 shares of the firm’s stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $33.00, for a total value of $66,000.00. Following the completion of the sale, the director owned 22,366 shares of the company’s stock, valued at approximately $738,078. This trade represents a 8.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 59,410 shares of company stock valued at $1,841,022. Insiders own 35.48% of the company’s stock.

Hedge Funds Weigh In On Dropbox

A number of institutional investors have recently modified their holdings of DBX. LSV Asset Management raised its position in Dropbox by 1.1% in the 4th quarter. LSV Asset Management now owns 11,735,641 shares of the company’s stock worth $326,251,000 after purchasing an additional 121,999 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in Dropbox by 12.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company’s stock valued at $193,886,000 after purchasing an additional 960,109 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its position in shares of Dropbox by 1.4% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 5,095,485 shares of the company’s stock valued at $153,935,000 after acquiring an additional 70,867 shares during the period. Wedge Capital Management L L P NC raised its holdings in Dropbox by 26.4% in the second quarter. Wedge Capital Management L L P NC now owns 3,005,173 shares of the company’s stock worth $82,552,000 after purchasing an additional 627,111 shares during the period. Finally, Allianz Asset Management GmbH increased its position in shares of Dropbox by 28.1% in the 4th quarter. Allianz Asset Management GmbH now owns 2,720,372 shares of the company’s stock valued at $75,626,000 after buying an additional 596,440 shares in 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.