Dropbox, Inc. (NASDAQ:DBX) Receives Consensus Recommendation of “Reduce” from Analysts

Dropbox, Inc. (NASDAQ:DBX) has been assigned an average recommendation of “Reduce” from the eight analysts that are currently covering the firm, MarketBeat reports. Three investment analysts have rated the stock with a sell recommendation, four have given a hold recommendation and one has given a buy recommendation to the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $30.75.

A number of equities research analysts have issued reports on DBX shares. Wall Street Zen downgraded Dropbox from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Weiss Ratings upgraded Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, August 13th. Bank of America reaffirmed an “underperform” rating on shares of Dropbox in a research note on Friday, August 7th. Zacks Research cut Dropbox from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 19th. Finally, Royal Bank Of Canada reissued an “outperform” rating and set a $42.00 target price on shares of Dropbox in a research report on Thursday, September 3rd.

Insider Buying and Selling at Dropbox

In other Dropbox news, CAO Sarah Schubach sold 1,632 shares of the business’s stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $31.61, for a total transaction of $51,587.52. Following the completion of the sale, the chief accounting officer directly owned 124,266 shares in the company, valued at $3,928,048.26. The trade was a 1.30% decrease in their ownership of the stock. The transaction was disclosed in a filing 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, CTO Ali Dasdan sold 11,332 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $34.13, for a total transaction of $386,761.16. Following the completion of the sale, the chief technology officer directly owned 471,052 shares of the company’s stock, valued at $16,077,004.76. The trade was a 2.35% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 38,667 shares of company stock valued at $1,285,874. 35.48% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Dropbox

Several institutional investors and hedge funds have recently modified their holdings of the stock. Palisade Asset Management LLC purchased a new stake in shares of Dropbox during the 3rd quarter valued at about $30,000. Kestra Advisory Services LLC purchased a new stake in shares of Dropbox during the fourth quarter valued at approximately $31,000. Larson Financial Group LLC raised its stake in shares of Dropbox by 228.0% during the fourth quarter. Larson Financial Group LLC now owns 1,138 shares of the company’s stock valued at $32,000 after purchasing an additional 791 shares during the period. Geneos Wealth Management Inc. lifted its position in shares of Dropbox by 78.0% during the second quarter. Geneos Wealth Management Inc. now owns 1,273 shares of the company’s stock worth $36,000 after purchasing an additional 558 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of Dropbox during the fourth quarter worth $38,000. Hedge funds and other institutional investors own 94.84% of the company’s stock.

Dropbox Price Performance

NASDAQ:DBX opened at $34.83 on Tuesday. The company has a market cap of $7.86 billion, a P/E ratio of 19.35, a P/E/G ratio of 5.15 and a beta of 0.65. The firm’s 50 day moving average is $32.30 and its two-hundred day moving average is $27.84. Dropbox has a fifty-two week low of $21.69 and a fifty-two week high of $36.37.

Dropbox (NASDAQ:DBX) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.74 by $0.01. The company had revenue of $631.50 million during the quarter, compared to analysts’ expectations of $626.69 million. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. The business’s quarterly revenue was up .9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.71 EPS. Research analysts forecast that Dropbox will post 1.93 earnings per share for the current fiscal year.

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.