Zacks Research Downgrades Dropbox (NASDAQ:DBX) to Strong Sell

Dropbox (NASDAQ:DBX) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Wednesday,Zacks.com reports.

Other equities research analysts also recently issued research reports about the company. Royal Bank Of Canada reissued an “outperform” rating on shares of Dropbox in a research report on Monday, June 1st. Bank of America reaffirmed an “underperform” rating on shares of Dropbox in a report on Friday, August 7th. Wall Street Zen downgraded Dropbox from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Citigroup increased their target price on Dropbox from $28.00 to $33.00 and gave the stock a “neutral” rating in a report on Friday, August 7th. Finally, William Blair upgraded Dropbox from an “underperform” rating to a “market perform” rating in a research report on Friday, August 7th. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Reduce” and a consensus target price of $28.25.

Dropbox Stock Up 0.0%

Shares of Dropbox stock opened at $34.00 on Wednesday. The stock has a market capitalization of $7.67 billion, a price-to-earnings ratio of 18.89, a price-to-earnings-growth ratio of 5.00 and a beta of 0.64. Dropbox has a twelve month low of $21.69 and a twelve month high of $36.30. The company has a 50-day simple moving average of $30.26 and a two-hundred day simple moving average of $26.98.

Dropbox (NASDAQ:DBX) last announced its earnings results on Thursday, August 6th. The company reported $0.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.74 by $0.01. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. The firm had revenue of $631.50 million for the quarter, compared to analyst estimates of $626.69 million. During the same quarter in the prior year, the business posted $0.71 EPS. The business’s revenue was up .9% compared to the same quarter last year. On average, sell-side analysts anticipate that Dropbox will post 1.94 earnings per share for the current fiscal year.

Insider Transactions at Dropbox

In other news, CAO Sarah Elizabeth Schubach sold 1,632 shares of Dropbox stock in a transaction on Friday, July 31st. The stock was sold at an average price of $31.61, for a total value of $51,587.52. Following the transaction, the chief accounting officer owned 124,266 shares in the company, valued at approximately $3,928,048.26. This trade represents a 1.30% 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, CTO Ali Dasdan sold 11,332 shares of Dropbox stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $34.13, for a total value of $386,761.16. Following the completion of the transaction, the chief technology officer owned 471,052 shares in the company, valued at approximately $16,077,004.76. The trade was a 2.35% 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. In the last 90 days, insiders have sold 59,410 shares of company stock worth $1,841,022. 35.48% of the stock is owned by insiders.

Institutional Investors Weigh In On Dropbox

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Pacer Advisors Inc. lifted its stake in shares of Dropbox by 2.8% in the 1st quarter. Pacer Advisors Inc. now owns 2,047,966 shares of the company’s stock valued at $46,530,000 after acquiring an additional 55,921 shares during the last quarter. Arbejdsmarkedets Tillaegspension acquired a new stake in shares of Dropbox during the 4th quarter valued at $22,050,000. Pictet Asset Management Holding SA grew its position in Dropbox by 317.2% during the 4th quarter. Pictet Asset Management Holding SA now owns 125,144 shares of the company’s stock worth $3,479,000 after acquiring an additional 95,146 shares during the last quarter. ING Groep NV bought a new stake in Dropbox during the 4th quarter worth $1,223,000. Finally, Jupiter Asset Management Ltd. acquired a new position in Dropbox in the 4th quarter worth about $1,591,000. 94.84% of the stock is owned by 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.