Dropbox, Inc. (NASDAQ:DBX) Receives Consensus Rating of “Reduce” from Analysts

Dropbox, Inc. (NASDAQ:DBX) has been given a consensus rating of “Reduce” by the eight ratings firms that are currently covering the stock, MarketBeat Ratings reports. Four analysts have rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the company. The average 12 month price target among brokers that have covered the stock in the last year is $29.75.

Several brokerages have commented on DBX. Citigroup lowered shares of Dropbox from a “neutral” rating to a “sell” rating and decreased their target price for the stock from $33.00 to $29.00 in a research report on Thursday, September 24th. Bank of America reiterated an “underperform” rating on shares of Dropbox in a report on Friday, August 7th. Weiss Ratings upgraded shares of Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, August 13th. William Blair raised shares of Dropbox from an “underperform” rating to a “market perform” rating in a report on Friday, August 7th. Finally, Royal Bank Of Canada restated an “outperform” rating and set a $42.00 target price on shares of Dropbox in a research report on Thursday, September 3rd.

Dropbox Stock Performance

Shares of DBX opened at $33.08 on Friday. The stock has a market capitalization of $7.47 billion, a P/E ratio of 18.38, a P/E/G ratio of 4.97 and a beta of 0.63. Dropbox has a 1 year low of $21.69 and a 1 year high of $38.17. The company’s fifty day moving average is $34.54 and its two-hundred day moving average is $29.27.

Dropbox (NASDAQ:DBX) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.75 EPS for the quarter, beating analysts’ consensus estimates 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 last year, the firm earned $0.71 earnings per share. The firm’s revenue was up .9% compared to the same quarter last year. Sell-side analysts predict that Dropbox will post 1.94 EPS for the current year.

Insider Transactions at Dropbox

In other news, insider Eric T. Webster sold 15,830 shares of Dropbox stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $34.09, for a total transaction of $539,644.70. Following the completion of the transaction, the insider owned 416,236 shares of the company’s stock, valued at $14,189,485.24. The trade was a 3.66% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Andrew Houston sold 383,800 shares of the business’s stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $35.02, for a total transaction of $13,440,676.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 919,544 shares of company stock worth $31,818,754 over the last ninety days. 35.48% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Dropbox

Several hedge funds have recently added to or reduced their stakes in the business. Norges Bank purchased a new stake in Dropbox during the fourth quarter valued at about $69,909,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of Dropbox by 12.7% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company’s stock worth $193,886,000 after purchasing an additional 960,109 shares during the period. Wedge Capital Management L L P NC raised its holdings in shares of Dropbox by 26.4% in the 2nd 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. Allianz Asset Management GmbH lifted its stake 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 purchasing an additional 596,440 shares in the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S acquired a new position in shares of Dropbox in the 1st quarter valued at about $5,221,000. 94.84% of the stock is currently owned by hedge funds and other institutional investors.

About Dropbox

Dropbox, Inc (NASDAQ: DBX) is a software company that provides cloud-based tools for storing, organizing, sharing and collaborating on files. Its platform enables individuals, businesses and teams to access files across devices, synchronize content and manage collaboration through web, desktop and mobile applications.

The company’s product portfolio includes Dropbox for cloud storage and file collaboration, Dropbox Sign for electronic signatures and document workflows, and DocSend for securely sharing and tracking business documents.