Dropbox (NASDAQ:DBX) Price Target Cut to $25.00 by Analysts at JPMorgan Chase & Co.

Dropbox (NASDAQ:DBX) had its price target dropped by investment analysts at JPMorgan Chase & Co. from $29.00 to $25.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has a “neutral” rating on the stock. JPMorgan Chase & Co.‘s price target would suggest a potential downside of 1.79% from the stock’s previous close.

Other analysts also recently issued research reports about the stock. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Dropbox in a report on Wednesday, January 21st. Royal Bank Of Canada dropped their target price on shares of Dropbox from $35.00 to $30.00 and set an “outperform” rating on the stock in a report on Friday. Wall Street Zen lowered shares of Dropbox from a “buy” rating to a “hold” rating in a research note on Friday, January 23rd. Finally, UBS Group lowered their target price on Dropbox from $27.00 to $23.00 and set a “sell” rating on the stock in a report on Friday. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Dropbox has a consensus rating of “Hold” and an average target price of $27.50.

Dropbox Price Performance

NASDAQ DBX traded up $0.73 during mid-day trading on Friday, reaching $25.46. The stock had a trading volume of 3,778,888 shares, compared to its average volume of 4,043,222. The stock has a market cap of $6.59 billion, a PE ratio of 14.40, a price-to-earnings-growth ratio of 2.02 and a beta of 0.63. The company has a fifty day moving average price of $26.53 and a 200 day moving average price of $28.35. Dropbox has a 1 year low of $23.63 and a 1 year high of $32.40.

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

Insider Buying and Selling at Dropbox

In other Dropbox news, CAO Sarah Elizabeth Schubach sold 1,416 shares of the business’s stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $24.49, for a total value of $34,677.84. Following the completion of the sale, the chief accounting officer owned 86,319 shares in the company, valued at approximately $2,113,952.31. The trade was a 1.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CTO Ali Dasdan sold 5,666 shares of the firm’s stock in a transaction that occurred on Monday, November 24th. The stock was sold at an average price of $30.00, for a total transaction of $169,980.00. Following the completion of the transaction, the chief technology officer owned 520,474 shares in the company, valued at $15,614,220. This represents a 1.08% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 430,423 shares of company stock worth $11,705,876 in the last quarter. 29.95% of the stock is currently owned by company insiders.

Institutional Trading of Dropbox

Several large investors have recently modified their holdings of DBX. LSV Asset Management increased its position in Dropbox by 38.1% during the 3rd quarter. LSV Asset Management now owns 11,613,642 shares of the company’s stock valued at $350,848,000 after purchasing an additional 3,205,140 shares during the period. Y Intercept Hong Kong Ltd bought a new position in shares of Dropbox in the 2nd quarter worth approximately $1,404,000. Kestra Investment Management LLC bought a new stake in shares of Dropbox during the second quarter valued at approximately $682,000. CenterBook Partners LP purchased a new stake in Dropbox in the second quarter worth $2,368,000. Finally, Norges Bank bought a new position in Dropbox in the second quarter worth $51,307,000. 94.84% of the stock is owned by institutional investors.

Dropbox News Summary

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

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.