Dropbox (NASDAQ:DBX) Cut to “Hold” at Wall Street Zen

Wall Street Zen cut shares of Dropbox (NASDAQ:DBX) from a buy rating to a hold rating in a research note issued to investors on Friday morning.

A number of other brokerages have also weighed in on DBX. Royal Bank Of Canada decreased their price objective on shares of Dropbox from $38.00 to $35.00 and set an “outperform” rating for the company in a report on Monday, January 5th. Weiss Ratings restated a “hold (c+)” rating on shares of Dropbox in a research note on Wednesday. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $31.33.

Dropbox Price Performance

DBX opened at $26.30 on Friday. The firm has a market cap of $6.80 billion, a PE ratio of 14.86, a P/E/G ratio of 2.15 and a beta of 0.62. The stock has a 50-day moving average price of $28.13 and a 200-day moving average price of $28.66. Dropbox has a 1 year low of $24.42 and a 1 year high of $33.33.

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

Insider Activity at Dropbox

In related news, CFO Timothy Regan sold 1,500 shares of the company’s stock in a transaction on Friday, November 28th. The stock was sold at an average price of $29.64, for a total transaction of $44,460.00. Following the completion of the sale, the chief financial officer owned 439,147 shares in the company, valued at approximately $13,016,317.08. This represents a 0.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Andrew Houston sold 23,818 shares of the firm’s stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $27.51, for a total value of $655,233.18. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 406,620 shares of company stock valued at $11,703,370 in the last quarter. 28.59% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Dropbox

Several institutional investors and hedge funds have recently bought and sold shares of the stock. LSV Asset Management increased its position in Dropbox by 38.1% in the third quarter. LSV Asset Management now owns 11,613,642 shares of the company’s stock worth $350,848,000 after buying an additional 3,205,140 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of Dropbox by 2.2% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 6,806,508 shares of the company’s stock valued at $205,625,000 after acquiring an additional 144,347 shares during the period. Jacobs Levy Equity Management Inc. increased its holdings in Dropbox by 1.4% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 5,095,485 shares of the company’s stock worth $153,935,000 after acquiring an additional 70,867 shares in the last quarter. Robeco Institutional Asset Management B.V. raised its stake in Dropbox by 22.5% during the 4th quarter. Robeco Institutional Asset Management B.V. now owns 2,518,534 shares of the company’s stock worth $70,015,000 after acquiring an additional 463,258 shares during the period. Finally, Northern Trust Corp raised its stake in Dropbox by 29.1% during the 3rd quarter. Northern Trust Corp now owns 2,488,077 shares of the company’s stock worth $75,165,000 after acquiring an additional 560,694 shares during the period. 94.84% of the stock is currently 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.