Dropbox (NASDAQ:DBX) Downgraded by Zacks Research to “Strong Sell”

Zacks Research cut shares of Dropbox (NASDAQ:DBX) from a hold rating to a strong sell rating in a report published on Wednesday morning,Zacks.com reports.

Several other equities analysts have also commented on the company. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of Dropbox in a report on Monday, June 1st. Bank of America reaffirmed an “underperform” rating on shares of Dropbox in a research note on Friday, August 7th. Wall Street Zen cut Dropbox from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Weiss Ratings raised shares of Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, August 13th. Finally, William Blair upgraded shares of Dropbox from an “underperform” rating to a “market perform” rating in a research report on Friday, August 7th. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Reduce” and an average price target of $28.25.

Dropbox Stock Up 0.0%

Shares of Dropbox stock opened at $34.00 on Wednesday. The firm has a market cap of $7.67 billion, a P/E ratio of 18.89, a P/E/G ratio of 5.00 and a beta of 0.64. Dropbox has a fifty-two week low of $21.69 and a fifty-two week high of $36.30. The business has a 50-day moving average price of $30.26 and a 200 day moving average price of $26.98.

Dropbox (NASDAQ:DBX) last released its earnings results on Thursday, August 6th. The company reported $0.75 EPS for the quarter, topping analysts’ consensus estimates of $0.74 by $0.01. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%.The company had revenue of $631.50 million for the quarter, compared to the consensus estimate of $626.69 million. During the same quarter last year, the business posted $0.71 EPS. Dropbox’s quarterly revenue was up .9% compared to the same quarter last year. As a group, equities research analysts anticipate that Dropbox will post 1.94 earnings per share for the current year.

Insider Activity

In other Dropbox news, CTO Ali Dasdan sold 11,332 shares of Dropbox stock in a transaction on Tuesday, August 18th. The shares were 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 owned 471,052 shares of the company’s stock, valued at $16,077,004.76. This trade represents a 2.35% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. 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. Also, CEO Ashraf Alkarmi sold 22,700 shares of Dropbox stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $27.86, for a total value of $632,422.00. Following the sale, the chief executive officer directly owned 1,080,746 shares of the company’s stock, valued at approximately $30,109,583.56. The trade was a 2.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 59,410 shares of company stock valued at $1,841,022 in the last three months. 35.48% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. LSV Asset Management boosted its position in Dropbox by 1.1% during the fourth quarter. LSV Asset Management now owns 11,735,641 shares of the company’s stock worth $326,251,000 after purchasing an additional 121,999 shares during the period. Arrowstreet Capital Limited Partnership lifted its stake in shares of Dropbox by 12.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company’s stock worth $193,886,000 after buying an additional 960,109 shares during the last quarter. Jacobs Levy Equity Management Inc. lifted its stake in shares of Dropbox by 1.4% in the third quarter. Jacobs Levy Equity Management Inc. now owns 5,095,485 shares of the company’s stock worth $153,935,000 after buying an additional 70,867 shares during the last quarter. Wedge Capital Management L L P NC boosted its holdings in shares of Dropbox by 26.4% during the 2nd quarter. Wedge Capital Management L L P NC now owns 3,005,173 shares of the company’s stock worth $82,552,000 after buying an additional 627,111 shares during the period. Finally, Allianz Asset Management GmbH boosted its holdings in shares of 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 period. Institutional investors and hedge funds own 94.84% of the company’s stock.

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.