Royal Bank Of Canada Issues Positive Forecast for Dropbox (NASDAQ:DBX) Stock Price

Dropbox (NASDAQ:DBX) had its price target increased by analysts at Royal Bank Of Canada from $35.00 to $38.00 in a report released on Friday,Benzinga reports. The firm currently has an “outperform” rating on the stock. Royal Bank Of Canada’s price objective indicates a potential upside of 23.10% from the company’s current price.

A number of other research analysts have also recently commented on DBX. UBS Group cut Dropbox from a “neutral” rating to a “sell” rating and lowered their target price for the company from $29.00 to $27.00 in a research note on Thursday, September 18th. Weiss Ratings reissued a “hold (c+)” rating on shares of Dropbox in a research report on Wednesday, October 8th. Finally, Wall Street Zen cut shares of Dropbox from a “buy” rating to a “hold” rating in a report on Sunday, October 26th. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $31.75.

Dropbox Stock Up 7.7%

Shares of NASDAQ:DBX traded up $2.20 on Friday, hitting $30.87. The company had a trading volume of 9,066,487 shares, compared to its average volume of 3,651,583. The firm’s 50-day simple moving average is $29.77 and its two-hundred day simple moving average is $28.73. The firm has a market capitalization of $8.33 billion, a price-to-earnings ratio of 18.82, a P/E/G ratio of 3.84 and a beta of 0.65. Dropbox has a 1 year low of $24.42 and a 1 year high of $33.33.

Dropbox (NASDAQ:DBX) last released its quarterly earnings results on Thursday, November 6th. The company reported $0.74 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.64 by $0.10. Dropbox had a net margin of 19.17% and a negative return on equity of 61.31%. The company had revenue of $634.40 million during the quarter, compared to the consensus estimate of $623.59 million. During the same period in the prior year, the firm earned $0.60 earnings per share. Dropbox’s revenue was down .7% on a year-over-year basis. Dropbox has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS. Equities research analysts anticipate that Dropbox will post 1.64 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Andrew Houston sold 101,167 shares of the stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $29.64, for a total transaction of $2,998,589.88. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Timothy Regan sold 1,500 shares of Dropbox stock in a transaction dated Thursday, October 30th. The stock was sold at an average price of $28.40, for a total transaction of $42,600.00. Following the completion of the transaction, the chief financial officer directly owned 468,621 shares of the company’s stock, valued at $13,308,836.40. This trade represents a 0.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 318,698 shares of company stock valued at $9,251,159. Company insiders own 29.95% of the company’s stock.

Institutional Investors Weigh In On Dropbox

Institutional investors and hedge funds have recently made changes to their positions in the company. SGL Investment Advisors Inc. lifted its position in Dropbox by 2.4% in the 2nd quarter. SGL Investment Advisors Inc. now owns 16,143 shares of the company’s stock valued at $442,000 after acquiring an additional 375 shares in the last quarter. SBI Securities Co. Ltd. increased its holdings in shares of Dropbox by 33.4% in the 1st quarter. SBI Securities Co. Ltd. now owns 1,794 shares of the company’s stock worth $48,000 after purchasing an additional 449 shares in the last quarter. Kera Capital Partners Inc. raised its stake in shares of Dropbox by 3.7% in the third quarter. Kera Capital Partners Inc. now owns 12,945 shares of the company’s stock worth $391,000 after purchasing an additional 460 shares during the last quarter. PNC Financial Services Group Inc. lifted its holdings in shares of Dropbox by 5.7% during the second quarter. PNC Financial Services Group Inc. now owns 8,607 shares of the company’s stock valued at $246,000 after purchasing an additional 461 shares in the last quarter. Finally, Elequin Capital LP boosted its position in shares of Dropbox by 71.0% during the first quarter. Elequin Capital LP now owns 1,130 shares of the company’s stock valued at $30,000 after buying an additional 469 shares during the last quarter. Institutional investors own 94.84% of the company’s stock.

About Dropbox

Dropbox, Inc provides a content collaboration platform worldwide. The company's platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. It serves customers in professional services, technology, media, education, industrial, consumer and retail, and financial services industries.