Dropbox’s (DBX) “Outperform” Rating Reiterated at Royal Bank Of Canada

Dropbox (NASDAQ:DBX)‘s stock had its “outperform” rating reaffirmed by research analysts at Royal Bank Of Canada in a note issued to investors on Thursday, Benzinga reports. They presently have a $42.00 price objective on the stock. Royal Bank Of Canada’s price target suggests a potential upside of 17.48% from the stock’s previous close.

A number of other research analysts have also commented on DBX. Citigroup upped their price objective on shares of Dropbox from $28.00 to $33.00 and gave the company a “neutral” rating in a research report on Friday, August 7th. Bank of America reaffirmed an “underperform” rating on shares of Dropbox in a report on Friday, August 7th. Zacks Research downgraded Dropbox from a “hold” rating to a “strong sell” rating in a research report on Wednesday, August 19th. Wall Street Zen lowered Dropbox from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Finally, William Blair upgraded Dropbox from an “underperform” rating to a “market perform” rating in a research report on Friday, August 7th. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Reduce” and an average price target of $30.75.

Dropbox Price Performance

DBX stock traded up $1.25 on Thursday, reaching $35.75. 143,879 shares of the company were exchanged, compared to its average volume of 3,938,801. Dropbox has a 12 month low of $21.69 and a 12 month high of $36.37. The stock’s fifty day moving average price is $31.78 and its 200 day moving average price is $27.62. The firm has a market capitalization of $8.07 billion, a PE ratio of 19.95, a PEG ratio of 5.07 and a beta of 0.65.

Dropbox (NASDAQ:DBX) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.75 earnings per share for the quarter, beating analysts’ consensus estimates of $0.74 by $0.01. The firm had revenue of $631.50 million during the quarter, compared to the consensus estimate of $626.69 million. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. The business’s revenue was up .9% on a year-over-year basis. During the same period in the prior year, the firm earned $0.71 EPS. As a group, research analysts expect that Dropbox will post 1.93 EPS for the current fiscal year.

Insider Activity

In other Dropbox news, Director Karen Peacock sold 2,000 shares of the company’s stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $33.00, for a total transaction of $66,000.00. Following the sale, the director directly owned 22,366 shares of the company’s stock, valued at approximately $738,078. This represents a 8.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Ali Dasdan sold 11,332 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $34.13, for a total transaction of $386,761.16. Following the sale, the chief technology officer directly owned 471,052 shares of the company’s stock, 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. Over the last 90 days, insiders have sold 38,667 shares of company stock worth $1,285,874. Company insiders own 35.48% of the company’s stock.

Institutional Investors Weigh In On Dropbox

A number of hedge funds and other institutional investors have recently bought and sold shares of DBX. Empowered Funds LLC boosted its stake in Dropbox by 7.3% in the first quarter. Empowered Funds LLC now owns 38,795 shares of the company’s stock worth $1,036,000 after purchasing an additional 2,655 shares in the last quarter. Cetera Investment Advisers raised its holdings in shares of Dropbox by 10.8% in the second 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 during the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of Dropbox by 88.0% in the second 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 during the last quarter. Cresset Asset Management LLC lifted its position in Dropbox by 75.8% during the 2nd quarter. Cresset Asset Management LLC now owns 15,230 shares of the company’s stock worth $436,000 after buying an additional 6,569 shares in the last quarter. Finally, Federated Hermes Inc. lifted its position in Dropbox by 360.9% during the 2nd quarter. Federated Hermes Inc. now owns 117,852 shares of the company’s stock worth $3,371,000 after buying an additional 92,280 shares in the last quarter. 94.84% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Dropbox

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Dropbox’s latest quarterly results modestly exceeded expectations, with adjusted earnings of $0.75 per share versus the $0.74 consensus and revenue of $631.5 million versus $626.7 million expected. Revenue rose 0.9% year over year, offering a supportive fundamental backdrop. The stock also remains above its 50-day and 200-day moving averages.
• Neutral Sentiment: Several institutional investors increased their Dropbox holdings during the second quarter, and institutions and hedge funds collectively own about 94.8% of the shares. This indicates continued support from professional investors, although the filings are backward-looking and may have limited immediate impact.
• Neutral Sentiment: Chief Accounting Officer Sarah Elizabeth Schubach sold 1,631 shares for approximately $57,901 under a pre-arranged Rule 10b5-1 plan. She retained 115,150 shares after the sale, reducing the transaction’s significance as a signal about management’s outlook. Dropbox insider sale
• Negative Sentiment: Dropbox said approximately 5,000 accounts were compromised in an August incident involving a legacy Lenovo ID authentication flaw. Attackers reportedly accessed accounts using victims’ email addresses without passwords and viewed or downloaded stored files. The breach could pressure customer trust and increase remediation, legal or regulatory costs. Reuters report on Dropbox account compromise
• Negative Sentiment: Options activity also turned more defensive, with traders purchasing 3,282 put contracts—about 48% above typical daily volume. The increase suggests investors are hedging against, or positioning for, further weakness following the security news, although it does not by itself establish a fundamental deterioration.
• Negative Sentiment: Analyst sentiment remains cautious: MarketBeat lists a consensus “Reduce” rating and an average price target of $28.25, below the recent share price. This may limit upside unless Dropbox provides reassurance about the breach or delivers stronger growth.

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.