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

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

Several research analysts recently issued reports on the company. William Blair reissued an “underperform” rating on shares of Dropbox in a research note on Monday, March 23rd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Dropbox in a research report on Monday, May 4th. Royal Bank Of Canada reiterated an “outperform” rating on shares of Dropbox in a report on Monday, June 1st. Citigroup increased their price target on Dropbox from $27.00 to $28.00 and gave the stock a “neutral” rating in a research report on Monday, May 11th. Finally, Wall Street Zen upgraded Dropbox from a “hold” rating to a “buy” rating in a research note on Sunday, June 28th.

Insider Activity at Dropbox

In other news, CEO Ashraf Alkarmi sold 22,700 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $27.86, for a total value of $632,422.00. Following the completion of the sale, the chief executive officer owned 1,080,746 shares in the company, valued at approximately $30,109,583.56. The trade was a 2.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider William T. Yoon sold 7,230 shares of the company’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $27.57, for a total transaction of $199,331.10. Following the completion of the sale, the insider directly owned 366,963 shares of the company’s stock, valued at $10,117,169.91. The trade was a 1.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders sold 129,082 shares of company stock worth $3,489,910 over the last quarter. Corporate insiders own 35.48% of the company’s stock.

Hedge Funds Weigh In On Dropbox

Several institutional investors have recently bought and sold shares of the business. Norges Bank acquired a new stake in Dropbox in the fourth quarter valued at approximately $69,909,000. Arrowstreet Capital Limited Partnership increased its position in shares of Dropbox by 12.7% during 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 in the last quarter. Arbejdsmarkedets Tillaegspension purchased a new stake in shares of Dropbox during the 4th quarter valued at $22,050,000. Wedge Capital Management L L P NC lifted its holdings in shares of Dropbox by 26.4% during the 2nd quarter. Wedge Capital Management L L P NC now owns 3,005,173 shares of the company’s stock valued at $82,552,000 after purchasing an additional 627,111 shares during the last quarter. Finally, Allianz Asset Management GmbH lifted its holdings in shares of Dropbox by 28.1% during 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 during the last quarter. 94.84% of the stock is owned by hedge funds and other institutional investors.

Dropbox Price Performance

Dropbox stock opened at $30.62 on Monday. The stock has a market cap of $7.14 billion, a price-to-earnings ratio of 16.73, a price-to-earnings-growth ratio of 3.35 and a beta of 0.66. The firm has a 50-day moving average of $27.55 and a two-hundred day moving average of $25.95. Dropbox has a 1 year low of $21.69 and a 1 year high of $32.40.

Dropbox (NASDAQ:DBX) last issued its earnings results on Thursday, May 7th. The company reported $0.76 EPS for the quarter, topping analysts’ consensus estimates of $0.71 by $0.05. Dropbox had a net margin of 18.71% and a negative return on equity of 30.01%. The business had revenue of $629.50 million for 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 company’s quarterly revenue was up .8% compared to the same quarter last year. Research analysts expect that Dropbox will post 2.09 earnings per share for the current year.

Dropbox Company Profile

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.