Wall Street Zen Downgrades Dropbox (NASDAQ:DBX) to Hold

Dropbox (NASDAQ:DBX) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a report issued on Friday.

Other equities analysts have also recently issued reports about the company. Royal Bank Of Canada reduced their target price on Dropbox from $38.00 to $35.00 and set an “outperform” rating for the company in a research report on Monday, January 5th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Dropbox in a research report on Wednesday. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Dropbox presently has an average rating of “Hold” and a consensus price target of $31.33.

Dropbox Trading Up 0.2%

Shares of DBX stock traded up $0.06 during trading hours on Friday, reaching $26.30. The stock had a trading volume of 2,298,352 shares, compared to its average volume of 3,032,243. The stock’s fifty day simple moving average is $28.13 and its 200 day simple moving average is $28.64. Dropbox has a 12 month low of $24.42 and a 12 month high of $33.33. The firm has a market capitalization of $6.80 billion, a PE ratio of 14.86, a PEG ratio of 2.14 and a beta of 0.62.

Dropbox (NASDAQ:DBX) last posted its earnings results on Thursday, November 6th. The company reported $0.74 earnings per share for the quarter, topping analysts’ consensus estimates of $0.64 by $0.10. Dropbox had a net margin of 19.87% and a negative return on equity of 49.51%. The business had revenue of $634.40 million for the quarter, compared to analyst estimates of $623.59 million. During the same quarter in the prior year, the firm posted $0.60 EPS. Dropbox’s revenue was down .7% on a year-over-year basis. As a group, equities research analysts anticipate that Dropbox will post 1.64 EPS for the current fiscal year.

Insider Transactions at Dropbox

In other news, CTO Ali Dasdan sold 5,666 shares of the company’s stock in a transaction on Monday, November 24th. The shares were sold at an average price of $30.00, for a total value of $169,980.00. Following the completion of the sale, the chief technology officer owned 520,474 shares of the company’s stock, valued at approximately $15,614,220. This represents a 1.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Timothy Regan sold 1,500 shares of the stock in a transaction on Friday, November 28th. The shares were sold at an average price of $29.64, for a total transaction of $44,460.00. Following the transaction, the chief financial officer directly owned 439,147 shares in the company, valued at approximately $13,016,317.08. This represents a 0.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 406,620 shares of company stock worth $11,703,370. 29.95% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Y Intercept Hong Kong Ltd bought a new stake in Dropbox during the second quarter worth about $1,404,000. Kestra Investment Management LLC purchased a new position in shares of Dropbox during the second quarter valued at approximately $682,000. Wealth Enhancement Advisory Services LLC boosted its position in shares of Dropbox by 11.9% in the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 48,224 shares of the company’s stock worth $1,350,000 after purchasing an additional 5,136 shares in the last quarter. Wedge Capital Management L L P NC grew its stake in shares of Dropbox by 2.7% in the 3rd quarter. Wedge Capital Management L L P NC now owns 2,287,185 shares of the company’s stock worth $69,096,000 after buying an additional 59,625 shares during the last quarter. Finally, CenterBook Partners LP purchased a new stake in shares of Dropbox in the 2nd quarter worth approximately $2,368,000. 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.