Dropbox, Inc. (NASDAQ:DBX) Receives Consensus Rating of “Reduce” from Brokerages

Dropbox, Inc. (NASDAQ:DBX) has earned a consensus recommendation of “Reduce” from the six analysts that are presently covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and one has issued a buy rating on the company. The average 1 year price objective among brokers that have covered the stock in the last year is $27.00.

DBX has been the subject of a number of research analyst reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Dropbox in a research report on Monday, May 4th. JPMorgan Chase & Co. cut their price objective 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. UBS Group cut their price objective 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. Citigroup boosted their price objective on shares of Dropbox from $27.00 to $28.00 and gave the company a “neutral” rating in a research report on Monday, May 11th. Finally, Wall Street Zen raised shares of Dropbox from a “hold” rating to a “buy” rating in a research report on Saturday, May 16th.

Dropbox Trading Up 2.6%

NASDAQ:DBX opened at $26.88 on Friday. Dropbox has a 12 month low of $21.69 and a 12 month high of $32.40. The company has a market cap of $6.27 billion, a PE ratio of 14.69, a price-to-earnings-growth ratio of 2.94 and a beta of 0.64. The company has a 50 day simple moving average of $24.73 and a two-hundred day simple moving average of $26.29.

Dropbox (NASDAQ:DBX) last posted its earnings results on Thursday, May 7th. The company reported $0.76 EPS for the quarter, topping analysts’ consensus estimates of $0.71 by $0.05. Dropbox had a net margin of 18.71% and a negative return on equity of 30.01%. The business had revenue of $629.50 million during the quarter, compared to the consensus estimate of $620.56 million. During the same quarter in the previous year, the firm posted $0.70 EPS. The firm’s revenue was up .8% on a year-over-year basis. Research analysts forecast that Dropbox will post 2.13 earnings per share for the current year.

Insider Activity

In other news, CAO Sarah Elizabeth Schubach sold 1,306 shares of the business’s stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $28.14, for a total transaction of $36,750.84. Following the completion of the sale, the chief accounting officer owned 131,120 shares of the company’s stock, valued at $3,689,716.80. The trade was a 0.99% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 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. Also, Director Andrew William Moore sold 8,443 shares of the business’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $27.57, for a total transaction of $232,773.51. Following the sale, the director directly owned 4,737 shares of the company’s stock, valued at approximately $130,599.09. The trade was a 64.06% 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. Over the last 90 days, insiders have sold 339,263 shares of company stock worth $8,428,641. Company insiders own 35.48% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of DBX. Empowered Funds LLC lifted its stake in shares of Dropbox by 7.3% during the 1st quarter. Empowered Funds LLC now owns 38,795 shares of the company’s stock valued at $1,036,000 after buying an additional 2,655 shares in the last quarter. Cetera Investment Advisers lifted its stake in shares of Dropbox by 10.8% during the 2nd quarter. Cetera Investment Advisers now owns 24,623 shares of the company’s stock valued at $704,000 after buying an additional 2,405 shares in the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of Dropbox by 88.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,681 shares of the company’s stock valued at $48,000 after buying an additional 787 shares in the last quarter. Cresset Asset Management LLC lifted its stake in shares of Dropbox by 75.8% during the 2nd quarter. Cresset Asset Management LLC now owns 15,230 shares of the company’s stock valued at $436,000 after buying an additional 6,569 shares in the last quarter. Finally, Federated Hermes Inc. lifted its stake in shares of Dropbox by 360.9% during the 2nd quarter. Federated Hermes Inc. now owns 117,852 shares of the company’s stock valued at $3,371,000 after buying an additional 92,280 shares in the last quarter. Hedge funds and other institutional investors own 94.84% of the company’s stock.

Dropbox Company Profile

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.