Dropbox, Inc. (NASDAQ:DBX) Stock Has Average Price Target of $29.75

Dropbox, Inc. (NASDAQ:DBX) has received an average rating of “Reduce” from the eight research firms that are covering the firm, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a sell rating, three have assigned a hold rating and one has given a buy rating to the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $29.75.

A number of research firms have recently commented on DBX. William Blair raised Dropbox from an “underperform” rating to a “market perform” rating in a research note on Friday, August 7th. Weiss Ratings raised Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, August 13th. Citigroup cut shares of Dropbox from a “neutral” rating to a “sell” rating and dropped their price target for the stock from $33.00 to $29.00 in a research note on Thursday, September 24th. Zacks Research downgraded shares of Dropbox from a “hold” rating to a “strong sell” rating in a research report on Wednesday, August 19th. Finally, Bank of America reissued an “underperform” rating on shares of Dropbox in a research report on Friday, August 7th.

Dropbox Trading Up 1.4%

DBX opened at $34.37 on Friday. The stock has a fifty day simple moving average of $34.51 and a two-hundred day simple moving average of $29.15. The company has a market cap of $7.76 billion, a price-to-earnings ratio of 19.09, a price-to-earnings-growth ratio of 4.99 and a beta of 0.63. Dropbox has a 12-month low of $21.69 and a 12-month high of $38.17.

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

Insider Transactions at Dropbox

In related news, CEO Andrew Houston sold 383,800 shares of the business’s stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $35.02, for a total value of $13,440,676.00. The sale was disclosed in a document filed 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, CEO Ashraf Alkarmi sold 28,800 shares of the company’s stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $35.54, for a total value 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 919,544 shares of company stock valued at $31,818,754. 35.48% of the stock is currently owned by insiders.

Institutional Trading of Dropbox

Institutional investors and hedge funds have recently modified their holdings of the business. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Dropbox by 12.7% during the first quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company’s stock valued at $193,886,000 after purchasing an additional 960,109 shares in the last quarter. Wedge Capital Management L L P NC increased its holdings in 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 buying an additional 627,111 shares in the last quarter. Allianz Asset Management GmbH raised its position in Dropbox by 28.1% in the 4th quarter. Allianz Asset Management GmbH now owns 2,720,372 shares of the company’s stock worth $75,626,000 after buying an additional 596,440 shares during the last quarter. Norges Bank purchased a new position in Dropbox in the 4th quarter worth about $69,909,000. Finally, Pacer Advisors Inc. raised its position in 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 buying an additional 55,921 shares during the last quarter. Institutional investors own 94.84% of the company’s stock.

Dropbox Company Profile

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 files across devices, synchronize content and manage collaboration through web, desktop and mobile applications.

The company’s product portfolio includes Dropbox for cloud storage and file collaboration, Dropbox Sign for electronic signatures and document workflows, and DocSend for securely sharing and tracking business documents.