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

Shares of Dropbox, Inc. (NASDAQ:DBX) have been given an average rating of “Reduce” by the seven research firms that are currently covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, four have issued a hold recommendation and one has issued a buy recommendation on the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $28.25.

DBX has been the topic of a number of analyst reports. Royal Bank Of Canada restated an “outperform” rating on shares of Dropbox in a research note on Monday, June 1st. Weiss Ratings reissued a “hold (c)” rating on shares of Dropbox in a report on Friday, July 31st. Citigroup boosted their target price on shares of Dropbox from $28.00 to $33.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. Wall Street Zen cut shares of Dropbox from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Finally, Bank of America reiterated an “underperform” rating on shares of Dropbox in a report on Friday, August 7th.

Dropbox Stock Up 6.8%

Shares of NASDAQ:DBX opened at $35.93 on Friday. Dropbox has a 52 week low of $21.69 and a 52 week high of $35.97. The company has a 50-day moving average price of $29.61 and a 200 day moving average price of $26.71. The company has a market cap of $8.38 billion, a P/E ratio of 19.96, a PEG ratio of 4.60 and a beta of 0.64.

Dropbox (NASDAQ:DBX) last released its earnings results on Thursday, August 6th. The company reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.74 by $0.01. The company had revenue of $631.50 million for the quarter, compared to analysts’ expectations of $626.69 million. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%.The firm’s quarterly revenue was up .9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.71 EPS. Analysts expect that Dropbox will post 2.09 EPS for the current year.

Insider Buying and Selling at Dropbox

In other news, CEO Ashraf Alkarmi sold 22,700 shares of the business’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $27.86, for a total value of $632,422.00. Following the completion of the transaction, the chief executive officer directly owned 1,080,746 shares of the company’s stock, valued at $30,109,583.56. The trade was a 2.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CTO Ali Dasdan sold 5,666 shares of the business’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $27.56, for a total transaction of $156,154.96. Following the completion of the transaction, the chief technology officer directly owned 514,611 shares of the company’s stock, valued at $14,182,679.16. The trade was a 1.09% 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. Over the last ninety days, insiders have sold 85,225 shares of company stock worth $2,373,756. Insiders own 35.48% of the company’s stock.

Institutional Investors Weigh In On Dropbox

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

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.