Dropbox, Inc. (NASDAQ:DBX) Receives Average Rating of “Hold” from Analysts

Shares of Dropbox, Inc. (NASDAQ:DBX) have been given a consensus rating of “Hold” by the five research firms that are covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, three have issued a hold rating and one has issued a buy rating on the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $27.50.

A number of analysts have issued reports on the company. Wall Street Zen lowered Dropbox from a “buy” rating to a “hold” rating in a research report on Friday, January 23rd. UBS Group dropped their price objective on Dropbox from $27.00 to $23.00 and set a “sell” rating for the company in a research note on Friday. Weiss Ratings reissued a “hold (c+)” rating on shares of Dropbox in a research note on Wednesday, January 21st. JPMorgan Chase & Co. lowered their target price on Dropbox from $29.00 to $25.00 and set a “neutral” rating for the company in a report on Friday. Finally, Royal Bank Of Canada cut their price target on shares of Dropbox from $35.00 to $30.00 and set an “outperform” rating on the stock in a research note on Friday.

Dropbox Stock Up 2.2%

DBX traded up $0.55 during trading on Friday, reaching $25.28. The company’s stock had a trading volume of 4,357,858 shares, compared to its average volume of 4,060,132. The firm has a fifty day simple moving average of $26.53 and a two-hundred day simple moving average of $28.35. The company has a market cap of $6.54 billion, a price-to-earnings ratio of 14.28, a PEG ratio of 2.02 and a beta of 0.63. Dropbox has a 1 year low of $23.63 and a 1 year high of $32.40.

Dropbox (NASDAQ:DBX) last posted its quarterly earnings results on Thursday, February 19th. The company reported $0.68 EPS for the quarter, beating the consensus estimate of $0.66 by $0.02. The firm had revenue of $636.20 million during the quarter, compared to analysts’ expectations of $627.83 million. Dropbox had a negative return on equity of 49.51% and a net margin of 19.87%.The business’s revenue for the quarter was down 1.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.73 earnings per share. As a group, equities analysts forecast that Dropbox will post 1.64 EPS for the current fiscal year.

Insider Activity at Dropbox

In other Dropbox news, CAO Sarah Elizabeth Schubach sold 1,416 shares of the stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $24.49, for a total transaction of $34,677.84. Following the sale, the chief accounting officer directly owned 86,319 shares in the company, valued at $2,113,952.31. This represents a 1.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Andrew Houston sold 164,502 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $25.66, for a total transaction of $4,221,121.32. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 430,423 shares of company stock worth $11,705,876. 29.95% of the stock is owned by insiders.

Institutional Investors Weigh In On Dropbox

A number of hedge funds and other institutional investors have recently modified their holdings of DBX. LSV Asset Management boosted its stake in Dropbox by 1.1% in the fourth quarter. LSV Asset Management now owns 11,735,641 shares of the company’s stock valued at $326,251,000 after acquiring an additional 121,999 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Dropbox by 11.3% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 7,573,627 shares of the company’s stock valued at $210,547,000 after purchasing an additional 767,119 shares during the last quarter. Jacobs Levy Equity Management Inc. boosted its position in shares of Dropbox by 1.4% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 5,095,485 shares of the company’s stock valued at $153,935,000 after purchasing an additional 70,867 shares during the period. Allianz Asset Management GmbH grew its stake in Dropbox by 28.1% during 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. Finally, Robeco Institutional Asset Management B.V. grew 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 buying an additional 463,258 shares during the last quarter. 94.84% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Dropbox

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Q4 beat — Dropbox reported $0.68 EPS (vs. $0.66 est.) and $636.2M revenue (vs. $627.8M est.), with management citing accelerating customer growth and cost cuts that lifted margins. Dropbox’s Q4 CY2025: Beats On Revenue, Customer Growth Accelerates
• Positive Sentiment: Guidance nudges above consensus — Q1 revenue guidance of $618.0M–$621.0M vs. ~ $615.5M consensus and FY‑26 revenue reiterated around $2.5B, implying modest upside to Street revenue assumptions. Dropbox Announces Fourth Quarter and Fiscal 2025 Results
• Neutral Sentiment: Earnings call details — Management emphasized operating discipline and reshaping investments; useful for assessing how sustainable margin gains and customer acceleration are over 2026. Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Insider sale — CAO Sarah Schubach sold 1,416 shares (~$34.7K); a small trim versus her >86K share holding and not a material signal of mass insider de‑risking. SEC Filing
• Negative Sentiment: Analyst target cut — RBC trimmed its price target from $35 to $30 (still “Outperform”), reducing near‑term upside expectations and potentially capping buying momentum. RBC price target cut coverage
• Negative Sentiment: Critical analysis on sustainability — Recent commentary argues free cash flow strength may not be sustainable amid user attrition and flat y/y revenue, a risk for valuation if growth doesn’t reaccelerate. Seeking Alpha: Rich FCF That Can’t Be Sustained

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.