BOX (NYSE:BOX) Receives “Underperform” Rating from Royal Bank Of Canada

BOX (NYSE:BOX)‘s stock had its “underperform” rating reiterated by research analysts at Royal Bank Of Canada in a research report issued on Wednesday,Benzinga reports. They presently have a $26.00 price target on the software maker’s stock. Royal Bank Of Canada’s target price points to a potential downside of 21.12% from the stock’s previous close.

Several other brokerages have also issued reports on BOX. UBS Group reaffirmed a “neutral” rating and issued a $37.00 target price (up from $29.00) on shares of BOX in a research note on Wednesday. Citigroup reiterated a “buy” rating on shares of BOX in a report on Wednesday. DA Davidson reissued a “buy” rating and issued a $45.00 target price on shares of BOX in a research note on Wednesday, May 27th. Wall Street Zen cut BOX from a “strong-buy” rating to a “buy” rating in a report on Saturday, May 9th. Finally, Weiss Ratings upgraded BOX from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, July 23rd. Three analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $36.67.

BOX Price Performance

Shares of NYSE:BOX opened at $32.96 on Wednesday. The company has a market cap of $4.56 billion, a price-to-earnings ratio of 50.71, a PEG ratio of 11.81 and a beta of 0.73. BOX has a one year low of $21.34 and a one year high of $33.88. The firm has a fifty day moving average price of $29.84 and a two-hundred day moving average price of $26.37.

BOX (NYSE:BOX) last posted its earnings results on Tuesday, August 25th. The software maker reported $0.40 EPS for the quarter, hitting the consensus estimate of $0.40. BOX had a negative return on equity of 24.19% and a net margin of 10.35%.The business had revenue of $321.15 million during the quarter, compared to analysts’ expectations of $319.33 million. During the same period in the previous year, the business earned $0.33 earnings per share. The firm’s revenue was up 9.2% on a year-over-year basis. BOX has set its Q3 2027 guidance at 0.390-0.390 EPS and its FY 2027 guidance at 1.540-1.540 EPS. Equities research analysts expect that BOX will post 0.31 EPS for the current fiscal year.

Insiders Place Their Bets

In other BOX news, COO Olivia Nottebohm sold 5,834 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $32.31, for a total value of $188,496.54. Following the completion of the sale, the chief operating officer owned 513,382 shares in the company, valued at approximately $16,587,372.42. This trade represents a 1.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Dylan C. Smith sold 17,000 shares of the stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $29.05, for a total value of $493,850.00. Following the completion of the sale, the chief financial officer owned 1,337,075 shares of the company’s stock, valued at approximately $38,842,028.75. This trade represents a 1.26% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 77,996 shares of company stock valued at $2,116,005 over the last three months. Company insiders own 3.99% of the company’s stock.

Hedge Funds Weigh In On BOX

Hedge funds and other institutional investors have recently made changes to their positions in the business. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in BOX in the second quarter worth $239,000. California State Teachers Retirement System increased its position in BOX by 2,484.3% during the 2nd quarter. California State Teachers Retirement System now owns 4,488,047 shares of the software maker’s stock valued at $119,113,000 after purchasing an additional 4,314,381 shares during the period. Paralel Advisors LLC increased its position in BOX by 12.7% during the 2nd quarter. Paralel Advisors LLC now owns 97,711 shares of the software maker’s stock valued at $2,593,000 after purchasing an additional 11,024 shares during the period. Odyssean LLC raised its holdings in BOX by 104.1% in the 2nd quarter. Odyssean LLC now owns 117,086 shares of the software maker’s stock worth $3,107,000 after purchasing an additional 59,719 shares in the last quarter. Finally, Concurrent Investment Advisors LLC raised its holdings in BOX by 23.0% in the 2nd quarter. Concurrent Investment Advisors LLC now owns 16,954 shares of the software maker’s stock worth $450,000 after purchasing an additional 3,166 shares in the last quarter. Institutional investors own 86.74% of the company’s stock.

BOX News Roundup

Here are the key news stories impacting BOX this week:

• Positive Sentiment: Box reported fiscal second-quarter revenue of $321.1 million, up 9.2% year over year and ahead of the $319.3 million consensus estimate. Billings increased 17% to $309.5 million, while operating cash flow rose 54% to $70.8 million. Box quarterly earnings report
• Positive Sentiment: Management issued fiscal third-quarter EPS guidance of $0.39, above the $0.33 analyst consensus, and revenue guidance of approximately $329 million versus expectations of $324.5 million.
• Positive Sentiment: Full-year fiscal 2027 EPS guidance of $1.54 is well above the $1.32 consensus estimate, signaling management expects stronger profitability. Box also repurchased approximately 2.6 million shares for $66 million during the quarter, supporting per-share results. Box fiscal second-quarter financial results
• Neutral Sentiment: Adjusted EPS was $0.40, matching consensus but improving from $0.33 a year earlier. The earnings “beat” was therefore limited, despite the modest revenue outperformance.
• Negative Sentiment: Full-year revenue guidance of approximately $1.3 billion was broadly in line with analyst expectations, offering little upward revision to the company’s growth outlook.
• Negative Sentiment: Box continues to report a negative return on equity of 24.19%, and its elevated valuation—approximately 51 times earnings—may increase investor sensitivity when quarterly results do not significantly exceed expectations.

About BOX

Box, Inc is a leading provider of cloud content management and file sharing solutions designed to support enterprises in securely managing, accessing and collaborating on digital content from anywhere. The company offers a unified platform that enables organizations to store, share and automate workflows across various departments, enhancing productivity and ensuring governance over sensitive information. Box’s services are tailored to meet the needs of industries such as healthcare, financial services, government and media, where compliance and data security are paramount.

The core offerings of Box include its Content Cloud platform, which provides content collaboration, workflow automation, data classification and secure file sharing.