UBS Group Forecasts Strong Price Appreciation for Dropbox (NASDAQ:DBX) Stock

Dropbox (NASDAQ:DBX) had its price target increased by UBS Group from $30.00 to $31.00 in a research note issued on Friday,Benzinga reports. The firm currently has a “buy” rating on the stock. UBS Group’s price objective would indicate a potential upside of 5.23% from the company’s current price.

Separately, Citigroup raised their price target on Dropbox from $30.00 to $32.00 and gave the stock a “neutral” rating in a research note on Friday.

Dropbox Price Performance

Dropbox stock opened at $29.46 on Friday. The stock has a market capitalization of $8.89 billion, a P/E ratio of 20.89, a P/E/G ratio of 1.70 and a beta of 0.68. Dropbox has a 12-month low of $20.68 and a 12-month high of $33.33. The firm’s 50-day moving average is $27.08 and its two-hundred day moving average is $28.54.

Dropbox (NASDAQ:DBX) last released its earnings results on Thursday, May 8th. The company reported $0.70 EPS for the quarter, topping the consensus estimate of $0.62 by $0.08. Dropbox had a net margin of 17.75% and a negative return on equity of 132.63%. The firm had revenue of $624.70 million during the quarter, compared to analysts’ expectations of $619.56 million. During the same period in the previous year, the company earned $0.58 EPS. Dropbox’s revenue for the quarter was down 1.0% on a year-over-year basis. As a group, analysts forecast that Dropbox will post 1.64 EPS for the current year.

Insider Buying and Selling

In other news, CFO Timothy Regan sold 2,500 shares of the stock in a transaction on Tuesday, April 15th. The shares were sold at an average price of $26.94, for a total value of $67,350.00. Following the completion of the sale, the chief financial officer now owns 565,068 shares of the company’s stock, valued at $15,222,931.92. This represents a 0.44 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Eric Cox sold 3,765 shares of the firm’s stock in a transaction on Thursday, February 27th. The shares were sold at an average price of $26.30, for a total transaction of $99,019.50. Following the completion of the transaction, the insider now directly owns 309,550 shares in the company, valued at approximately $8,141,165. This represents a 1.20 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 11,265 shares of company stock valued at $303,520. 29.95% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in DBX. Bessemer Group Inc. boosted its position in shares of Dropbox by 0.3% in the fourth quarter. Bessemer Group Inc. now owns 126,321 shares of the company’s stock worth $3,794,000 after buying an additional 333 shares during the period. Allworth Financial LP lifted its position in Dropbox by 33.5% during the 4th quarter. Allworth Financial LP now owns 1,456 shares of the company’s stock worth $45,000 after acquiring an additional 365 shares in the last quarter. Heron Bay Capital Management boosted its holdings in Dropbox by 2.3% in the 4th quarter. Heron Bay Capital Management now owns 16,769 shares of the company’s stock worth $504,000 after acquiring an additional 378 shares during the period. Parallel Advisors LLC grew its position in Dropbox by 5.6% in the first quarter. Parallel Advisors LLC now owns 7,411 shares of the company’s stock valued at $198,000 after acquiring an additional 395 shares in the last quarter. Finally, Banco Bilbao Vizcaya Argentaria S.A. raised its stake in shares of Dropbox by 5.1% during the fourth quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 8,419 shares of the company’s stock valued at $256,000 after purchasing an additional 407 shares during the period. 94.84% of the stock is owned by hedge funds and other institutional investors.

Dropbox Company Profile

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.