Dropbox (NASDAQ:DBX) Stock Price Crosses Below 50 Day Moving Average – What’s Next?

Dropbox, Inc. (NASDAQ:DBX)’s share price passed below its 50 day moving average during trading on Tuesday. The stock has a 50 day moving average of $35.27 and traded as low as $34.72. Dropbox shares last traded at $34.96, with a volume of 3,291,912 shares trading hands.

Analysts Set New Price Targets

DBX has been the topic of several research analyst reports. Zacks Research raised shares of Dropbox from a “strong sell” rating to a “hold” rating in a research note on Tuesday, October 6th. Weiss Ratings upgraded shares of Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, August 13th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $42.00 price target on shares of Dropbox in a research note on Thursday, September 3rd. Citigroup lowered shares of Dropbox from a “neutral” rating to a “sell” rating and dropped their price objective for the company from $33.00 to $29.00 in a report on Thursday, September 24th. Finally, Wall Street Zen lowered shares of Dropbox from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. One equities research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus price target of $31.60.

Dropbox Price Performance

The firm has a fifty day simple moving average of $35.27 and a 200-day simple moving average of $29.11. The firm has a market cap of $7.89 billion, a P/E ratio of 19.42, a price-to-earnings-growth ratio of 3.52 and a beta of 0.62.

Dropbox (NASDAQ:DBX) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.75 EPS for the quarter, beating the consensus estimate 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 the consensus estimate of $626.69 million. During the same quarter in the previous year, the company posted $0.71 earnings per share. The company’s quarterly revenue was up .9% on a year-over-year basis. On average, equities analysts predict that Dropbox, Inc. will post 1.94 earnings per share for the current year.

Insider Buying and Selling at Dropbox

In other news, CEO Ashraf Alkarmi sold 28,800 shares of Dropbox stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $35.54, for a total transaction of $1,023,552.00. Following the completion of the transaction, the chief executive officer directly owned 1,004,081 shares in the company, valued at $35,685,038.74. This trade represents a 2.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Ross Tennenbaum sold 97,558 shares of Dropbox stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $35.02, for a total transaction of $3,416,481.16. Following the transaction, the chief financial officer owned 690,666 shares of the company’s stock, valued at $24,187,123.32. This represents a 12.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 947,468 shares of company stock worth $32,809,905 in the last ninety days. 35.48% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Dropbox

Several large investors have recently added to or reduced their stakes in DBX. Arrowstreet Capital Limited Partnership lifted its stake in Dropbox by 12.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company’s stock valued at $193,886,000 after acquiring an additional 960,109 shares in the last quarter. Wedge Capital Management L L P NC grew its stake in shares of Dropbox by 26.4% in the 2nd quarter. Wedge Capital Management L L P NC now owns 3,005,173 shares of the company’s stock worth $82,552,000 after acquiring an additional 627,111 shares in the last quarter. Pacer Advisors Inc. grew 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 worth $46,530,000 after acquiring an additional 55,921 shares in the last quarter. KBC Group NV raised its holdings in shares of Dropbox by 12.6% in the first quarter. KBC Group NV now owns 944,829 shares of the company’s stock valued at $21,466,000 after purchasing an additional 105,876 shares during the last quarter. Finally, Principal Financial Group Inc. raised its holdings in shares of Dropbox by 4.0% in the first quarter. Principal Financial Group Inc. now owns 390,386 shares of the company’s stock valued at $8,870,000 after purchasing an additional 15,027 shares during the last quarter. Institutional investors own 94.84% of the company’s stock.

About Dropbox

Dropbox, Inc (NASDAQ: DBX) is a software company that provides cloud-based tools for storing, organizing, sharing and collaborating on files. Its platform enables individuals, businesses and teams to access documents, photos and other content across connected devices, synchronize files and manage shared workflows.

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