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

Shares of Dropbox, Inc. (NASDAQ:DBX) have earned an average rating of “Reduce” from the six brokerages that are presently covering the company, MarketBeat.com reports. Two investment analysts have rated the stock with a sell recommendation, three have issued a hold recommendation and one has given a buy recommendation to the company. The average 12 month price objective among analysts that have covered the stock in the last year is $27.00.

A number of analysts have recently weighed in on DBX shares. William Blair restated an “underperform” rating on shares of Dropbox in a research note on Monday, March 23rd. UBS Group lowered their target price on Dropbox from $27.00 to $23.00 and set a “sell” rating for the company in a research note on Friday, February 20th. Royal Bank Of Canada restated an “outperform” rating on shares of Dropbox in a research note on Monday, June 1st. Weiss Ratings restated a “hold (c)” rating on shares of Dropbox in a research note on Monday, May 4th. Finally, Wall Street Zen upgraded Dropbox from a “hold” rating to a “buy” rating in a research note on Saturday, May 16th.

Dropbox Stock Performance

Shares of NASDAQ:DBX opened at $27.52 on Friday. Dropbox has a twelve month low of $21.69 and a twelve month high of $32.40. The firm has a market cap of $6.42 billion, a PE ratio of 15.04, a price-to-earnings-growth ratio of 3.01 and a beta of 0.67. The business has a fifty day moving average of $25.11 and a 200-day moving average of $26.19.

Dropbox (NASDAQ:DBX) last announced its earnings results on Thursday, May 7th. The company reported $0.76 earnings per share for the quarter, beating analysts’ consensus estimates of $0.71 by $0.05. Dropbox had a negative return on equity of 30.01% and a net margin of 18.71%.The company had revenue of $629.50 million during the quarter, compared to analyst estimates of $620.56 million. During the same period last year, the company posted $0.70 earnings per share. The firm’s quarterly revenue was up .8% compared to the same quarter last year. On average, analysts anticipate that Dropbox will post 2.09 EPS for the current fiscal year.

Insider Transactions at Dropbox

In related news, CEO Andrew Houston sold 30,332 shares of Dropbox stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $27.50, for a total value of $834,130.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Ali Dasdan sold 5,666 shares of Dropbox stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $27.56, for a total value of $156,154.96. Following the completion of the sale, the chief technology officer owned 514,611 shares of the company’s stock, valued at approximately $14,182,679.16. The trade was a 1.09% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 239,883 shares of company stock valued at $6,006,972. 35.48% of the stock is currently owned by insiders.

Institutional Trading of Dropbox

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DBX. LSV Asset Management increased its position in Dropbox by 38.1% in the third quarter. LSV Asset Management now owns 11,613,642 shares of the company’s stock worth $350,848,000 after purchasing an additional 3,205,140 shares during the period. Norges Bank acquired a new stake in Dropbox in the fourth quarter worth about $69,909,000. Arrowstreet Capital Limited Partnership increased its position in Dropbox by 12.7% in the first 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. Arbejdsmarkedets Tillaegspension acquired a new stake in Dropbox in the fourth quarter worth about $22,050,000. Finally, Allianz Asset Management GmbH increased its position in Dropbox by 47.8% in the third quarter. Allianz Asset Management GmbH now owns 2,123,932 shares of the company’s stock worth $64,164,000 after purchasing an additional 686,577 shares during the period. 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.