Wall Street Zen Downgrades Dropbox (NASDAQ:DBX) to Hold

Dropbox (NASDAQ:DBX) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report issued on Saturday.

A number of other research firms have also commented on DBX. Bank of America reissued an “underperform” rating on shares of Dropbox in a research report on Friday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Dropbox in a research report on Friday, July 31st. Citigroup increased their target price on shares of Dropbox from $28.00 to $33.00 and gave the company a “neutral” rating in a research note on Friday. Royal Bank Of Canada reissued an “outperform” rating on shares of Dropbox in a research report on Monday, June 1st. Finally, William Blair upgraded Dropbox from an “underperform” rating to a “market perform” rating in a research note on Friday. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Reduce” and a consensus price target of $28.25.

Dropbox Stock Performance

DBX stock opened at $34.81 on Friday. The firm has a market cap of $8.12 billion, a PE ratio of 19.34, a PEG ratio of 3.81 and a beta of 0.64. Dropbox has a 1 year low of $21.69 and a 1 year high of $35.72. The company has a fifty day simple moving average of $29.08 and a 200 day simple moving average of $26.47.

Dropbox (NASDAQ:DBX) last posted its earnings results on Thursday, August 6th. The company reported $0.75 EPS for the quarter, topping the consensus estimate 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 for the quarter, compared to the consensus estimate of $626.69 million. During the same period in the prior year, the business posted $0.71 earnings per share. The business’s quarterly revenue was up .9% on a year-over-year basis. As a group, analysts forecast that Dropbox will post 2.09 EPS for the current fiscal year.

Insider Buying and Selling at Dropbox

In related news, CAO Sarah Elizabeth Schubach sold 1,632 shares of the business’s stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $31.61, for a total value of $51,587.52. Following the completion of the transaction, the chief accounting officer owned 124,266 shares in the company, valued at $3,928,048.26. The trade was a 1.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Andrew William Moore sold 8,443 shares of the stock in a transaction on Monday, May 18th. The shares were sold at an average price of $27.57, for a total value of $232,773.51. Following the completion of the transaction, the director owned 4,737 shares in the company, valued at $130,599.09. The trade was a 64.06% decrease in their ownership of the stock. 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. Insiders sold 130,945 shares of company stock worth $3,565,129 over the last 90 days. Company insiders own 35.48% of the company’s stock.

Institutional Investors Weigh In On Dropbox

A number of institutional investors and hedge funds have recently made changes to their positions in DBX. Palisade Asset Management LLC acquired a new position in shares of Dropbox during the third quarter worth $30,000. Kestra Advisory Services LLC acquired a new stake in Dropbox in the fourth quarter valued at $31,000. Larson Financial Group LLC raised its position in Dropbox by 228.0% during the 4th quarter. Larson Financial Group LLC now owns 1,138 shares of the company’s stock worth $32,000 after purchasing an additional 791 shares during the last quarter. Geneos Wealth Management Inc. lifted its holdings in Dropbox by 78.0% during the 2nd quarter. Geneos Wealth Management Inc. now owns 1,273 shares of the company’s stock worth $36,000 after buying an additional 558 shares during the period. Finally, Caitong International Asset Management Co. Ltd bought a new stake in shares of Dropbox in the 4th quarter valued at about $38,000. Institutional investors own 94.84% of the company’s stock.

More Dropbox News

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Dropbox reported fiscal second-quarter 2026 adjusted earnings of $0.75 per share, exceeding the $0.74 consensus estimate and improving from $0.71 a year earlier. Revenue of $631.5 million also topped expectations of $626.7 million. Dropbox Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Management raised its 2026 outlook, while improving core file, sync and sharing trends, growth in paying users and expanding artificial-intelligence capabilities provide potential support for future results. Dropbox Q2 Earnings Beat Estimates on Core FSS, 2026 Outlook Raised
• Positive Sentiment: Dropbox forecast third-quarter revenue of $627 million to $630 million, above the $625.9 million analyst consensus, signaling expectations for continued operating momentum. Dropbox Earnings Conference Call
• Positive Sentiment: The company’s AI-powered search initiatives could help differentiate Dropbox, improve content discovery and create new opportunities to increase engagement and monetization. Can Dropbox Redefine Itself Through AI-Powered Search?
• Neutral Sentiment: Despite the earnings beat, quarterly revenue increased only 0.9% year over year. This reinforces the view that Dropbox must accelerate growth beyond its mature core storage and collaboration business. Dropbox Shares Decline Despite Earnings Beat as Revenue Growth Disappoints

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.