Dropbox (NASDAQ:DBX) Stock Price Down 3.7% – Here’s Why

Shares of Dropbox, Inc. (NASDAQ:DBX) fell 3.7% on Tuesday . The company traded as low as $35.39 and last traded at $34.6780. 164,341 shares changed hands during trading, a decline of 96% from the average daily volume of 3,964,651 shares. The stock had previously closed at $36.01.

Analysts Set New Price Targets

Several research firms have recently issued reports on DBX. Zacks Research lowered shares of Dropbox from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 19th. Wall Street Zen lowered shares of Dropbox from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Citigroup raised their price objective on shares of Dropbox from $28.00 to $33.00 and gave the stock a “neutral” rating in a research note on Friday, August 7th. William Blair upgraded Dropbox from an “underperform” rating to a “market perform” rating in a research report on Friday, August 7th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and set a $42.00 target price on shares of Dropbox in a research note on Thursday, September 3rd. One equities research analyst has rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and an average target price of $30.75.

Dropbox Trading Down 5.6%

The company’s 50 day moving average is $33.79 and its 200 day moving average is $28.64. The company has a market cap of $7.68 billion, a PE ratio of 18.89, a P/E/G ratio of 5.37 and a beta of 0.65.

Dropbox (NASDAQ:DBX) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.75 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.74 by $0.01. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%.The firm had revenue of $631.50 million during the quarter, compared to analyst estimates of $626.69 million. During the same quarter in the previous year, the business earned $0.71 earnings per share. Dropbox’s quarterly revenue was up .9% on a year-over-year basis. Analysts expect that Dropbox, Inc. will post 1.94 EPS for the current year.

Insider Activity at Dropbox

In other news, insider William T. Yoon sold 12,382 shares of the stock in a transaction on Friday, September 4th. The stock was sold at an average price of $34.78, for a total transaction of $430,645.96. Following the completion of the sale, the insider owned 366,693 shares in the company, valued at approximately $12,753,582.54. This represents a 3.27% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Sarah Schubach sold 2,025 shares of the business’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $36.78, for a total value of $74,479.50. Following the transaction, the chief accounting officer owned 134,834 shares in the company, valued at approximately $4,959,194.52. This trade represents a 1.48% 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 have sold a total of 566,524 shares of company stock valued at $19,796,496 over the last three months. Company insiders own 35.48% of the company’s stock.

Hedge Funds Weigh In On Dropbox

Hedge funds have recently modified their holdings of the stock. Norges Bank purchased a new position in shares of Dropbox in the fourth quarter valued at about $69,909,000. Arrowstreet Capital Limited Partnership boosted its holdings 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 during the period. Wedge Capital Management L L P NC boosted its holdings in shares of Dropbox by 26.4% during the second quarter. Wedge Capital Management L L P NC now owns 3,005,173 shares of the company’s stock worth $82,552,000 after purchasing an additional 627,111 shares during the period. Allianz Asset Management GmbH grew its stake in shares of Dropbox by 28.1% in the fourth quarter. Allianz Asset Management GmbH now owns 2,720,372 shares of the company’s stock worth $75,626,000 after purchasing an additional 596,440 shares during the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S bought a new stake in shares of Dropbox in the first quarter worth about $5,221,000. Institutional investors and hedge funds own 94.84% of the company’s stock.

About Dropbox

Dropbox, Inc (NASDAQ: DBX) is a technology company that provides cloud-based file storage, synchronization, sharing and collaboration services. Its platform enables individuals, businesses and organizations to store files online, access them across connected devices, and collaborate on documents and other digital content.

The company’s offerings include Dropbox for file management and collaboration, Dropbox Paper for shared document and project work, Dropbox Sign for electronic signatures, and DocSend for securely sharing and tracking business documents.