Dropbox (NASDAQ:DBX) Trading Down 9.3% – What’s Next?

Shares of Dropbox, Inc. (NASDAQ:DBX) traded down 9.3% during trading on Monday . The stock traded as low as $26.57 and last traded at $26.2240. 1,358,776 shares were traded during trading, a decline of 65% from the average session volume of 3,896,428 shares. The stock had previously closed at $28.90.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Weiss Ratings reissued a “hold (c)” rating on shares of Dropbox in a research report on Monday, May 4th. Citigroup increased their price target on shares of Dropbox from $27.00 to $28.00 and gave the company a “neutral” rating in a research report on Monday. UBS Group decreased their price target on shares of Dropbox from $27.00 to $23.00 and set a “sell” rating for the company in a research report on Friday, February 20th. JPMorgan Chase & Co. decreased their price target on shares of Dropbox from $29.00 to $25.00 and set a “neutral” rating for the company in a research report on Friday, February 20th. Finally, Royal Bank Of Canada increased their price target on shares of Dropbox from $30.00 to $32.00 and gave the company an “outperform” rating in a research report on Friday, May 8th. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, Dropbox currently has an average rating of “Reduce” and a consensus price target of $27.00.

Dropbox Trading Up 1.5%

The stock has a market capitalization of $6.32 billion, a PE ratio of 14.32, a price-to-earnings-growth ratio of 1.87 and a beta of 0.64. The company’s 50-day moving average is $24.51 and its 200 day moving average is $26.46.

Dropbox (NASDAQ:DBX) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.76 EPS for the quarter, beating the consensus estimate of $0.71 by $0.05. The firm had revenue of $629.50 million during the quarter, compared to analyst estimates of $620.56 million. Dropbox had a net margin of 18.71% and a negative return on equity of 30.01%. Dropbox’s revenue was up .8% on a year-over-year basis. During the same period last year, the firm posted $0.70 EPS. Sell-side analysts forecast that Dropbox, Inc. will post 2.03 EPS for the current fiscal year.

Insider Activity at Dropbox

In related news, insider Ashraf Alkarmi sold 12,472 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $26.00, for a total value of $324,272.00. Following the completion of the transaction, the insider directly owned 414,661 shares of the company’s stock, valued at $10,781,186. This trade represents a 2.92% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Sarah Elizabeth Schubach sold 1,769 shares of the stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $23.95, for a total transaction of $42,367.55. Following the completion of the transaction, the chief accounting officer directly owned 136,106 shares of the company’s stock, valued at $3,259,738.70. The trade was a 1.28% 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. Over the last quarter, insiders sold 249,288 shares of company stock valued at $5,994,652. Company insiders own 35.48% of the company’s stock.

Hedge Funds Weigh In On Dropbox

A number of institutional investors have recently bought and sold shares of DBX. Rossby Financial LCC raised its position in Dropbox by 128.5% during the 3rd quarter. Rossby Financial LCC now owns 937 shares of the company’s stock worth $28,000 after buying an additional 527 shares during the last quarter. Palisade Asset Management LLC purchased a new position in Dropbox during the 3rd quarter worth approximately $30,000. First Horizon Corp purchased a new position in Dropbox during the 3rd quarter worth approximately $31,000. Kestra Advisory Services LLC purchased a new position in Dropbox during the 4th quarter worth approximately $31,000. Finally, 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 buying an additional 791 shares during the last quarter. 94.84% of the stock is owned by hedge funds and other institutional investors.

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.