Dropbox (NASDAQ:DBX) Reaches New 1-Year Low – Time to Sell?

Dropbox, Inc. (NASDAQ:DBX) shares hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $21.94 and last traded at $22.1460, with a volume of 453629 shares changing hands. The stock had previously closed at $22.70.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on DBX. Weiss Ratings reiterated a “hold (c+)” rating on shares of Dropbox in a research report on Wednesday, January 21st. Royal Bank Of Canada dropped their price target on Dropbox from $35.00 to $30.00 and set an “outperform” rating for the company in a research report on Friday, February 20th. Wall Street Zen downgraded Dropbox from a “buy” rating to a “hold” rating in a research report on Friday, January 23rd. William Blair reiterated an “underperform” rating on shares of Dropbox in a research report on Monday, March 23rd. Finally, JPMorgan Chase & Co. dropped their price target on Dropbox from $29.00 to $25.00 and set a “neutral” rating for the company in a research report on Friday, February 20th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Reduce” and a consensus price target of $27.50.

Dropbox Trading Down 2.9%

The company has a market capitalization of $5.32 billion, a PE ratio of 11.86, a PEG ratio of 1.65 and a beta of 0.61. The stock has a fifty day moving average of $24.69 and a two-hundred day moving average of $27.32.

Dropbox (NASDAQ:DBX) last announced its quarterly earnings data on Thursday, February 19th. The company reported $0.68 earnings per share for the quarter, beating analysts’ consensus estimates of $0.66 by $0.02. The company had revenue of $636.20 million for the quarter, compared to analysts’ expectations of $627.83 million. Dropbox had a negative return on equity of 37.47% and a net margin of 20.17%.Dropbox’s revenue for the quarter was down 1.1% compared to the same quarter last year. During the same period last year, the firm posted $0.73 EPS. Equities analysts forecast that Dropbox, Inc. will post 1.64 EPS for the current year.

Insider Transactions at Dropbox

In related news, CAO Sarah Elizabeth Schubach sold 1,416 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $24.49, for a total transaction of $34,677.84. Following the transaction, the chief accounting officer directly owned 86,319 shares of the company’s stock, valued at approximately $2,113,952.31. This trade represents a 1.61% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Ashraf Alkarmi sold 12,472 shares of the firm’s stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $26.00, for a total value of $324,272.00. Following the transaction, the insider directly owned 414,661 shares in the company, valued at approximately $10,781,186. This represents a 2.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 471,774 shares of company stock valued at $11,823,909. 29.95% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Dropbox

A number of large investors have recently modified their holdings of the company. WealthCollab LLC grew its position in Dropbox by 20.6% during the 4th quarter. WealthCollab LLC now owns 2,356 shares of the company’s stock worth $65,000 after acquiring an additional 403 shares during the last quarter. Parallel Advisors LLC grew its position in Dropbox by 8.3% during the 4th quarter. Parallel Advisors LLC now owns 5,765 shares of the company’s stock worth $160,000 after acquiring an additional 440 shares during the last quarter. Lakewood Asset Management LLC grew its position in Dropbox by 1.0% during the 4th quarter. Lakewood Asset Management LLC now owns 44,905 shares of the company’s stock worth $1,248,000 after acquiring an additional 458 shares during the last quarter. Kera Capital Partners Inc. grew its position in Dropbox by 3.7% during the 3rd quarter. Kera Capital Partners Inc. now owns 12,945 shares of the company’s stock worth $391,000 after acquiring an additional 460 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. grew its position in Dropbox by 1.8% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 26,254 shares of the company’s stock worth $730,000 after acquiring an additional 466 shares during the last quarter. 94.84% of the stock is 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.