Dropbox (NASDAQ:DBX) Stock Price Down 3.7% – Time to Sell?

Dropbox, Inc. (NASDAQ:DBX)’s share price was down 3.7% during trading on Tuesday . The company traded as low as $35.39 and last traded at $34.6780. 164,341 shares were traded during mid-day trading, a decline of 96% from the average session volume of 3,964,651 shares. The stock had previously closed at $36.01.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. William Blair raised Dropbox from an “underperform” rating to a “market perform” rating in a report on Friday, August 7th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $42.00 price objective on shares of Dropbox in a research note on Thursday, September 3rd. Zacks Research cut Dropbox from a “hold” rating to a “strong sell” rating in a research report on Wednesday, August 19th. Bank of America reiterated an “underperform” rating on shares of Dropbox in a research note on Friday, August 7th. Finally, Citigroup increased their target price on shares of Dropbox from $28.00 to $33.00 and gave the stock a “neutral” rating in a report on Friday, August 7th. One equities research analyst has rated the stock with a Buy rating, four have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average target price of $30.75.

Dropbox Stock Performance

The company has a market capitalization of $7.68 billion, a P/E ratio of 18.89, a P/E/G ratio of 5.37 and a beta of 0.65. The business’s fifty day simple moving average is $33.79 and its 200-day simple moving average is $28.64.

Dropbox (NASDAQ:DBX) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.75 EPS for the quarter, beating the consensus estimate of $0.74 by $0.01. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. The business had revenue of $631.50 million during the quarter, compared to the consensus estimate of $626.69 million. During the same quarter in the prior year, the firm earned $0.71 EPS. The business’s revenue was up .9% on a year-over-year basis. As a group, analysts forecast that Dropbox, Inc. will post 1.94 EPS for the current year.

Insider Activity at Dropbox

In other Dropbox news, CEO Ashraf Alkarmi sold 28,800 shares of the firm’s stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $35.54, for a total transaction of $1,023,552.00. Following the completion of the transaction, the chief executive officer owned 1,004,081 shares in the company, valued at $35,685,038.74. This trade represents a 2.79% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider William Yoon sold 12,382 shares of Dropbox stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $34.78, for a total value of $430,645.96. Following the completion of the sale, the insider directly owned 366,693 shares in the company, valued at approximately $12,753,582.54. The trade was a 3.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 566,524 shares of company stock valued at $19,796,496 in the last 90 days. 35.48% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Dropbox

Institutional investors have recently bought and sold shares of the business. WINTON GROUP Ltd purchased a new stake in Dropbox during the second quarter valued at approximately $4,427,000. Baird Financial Group Inc. purchased a new position in shares of Dropbox in the 2nd quarter worth approximately $209,000. Spark Investment Management LLC bought a new position in shares of Dropbox during the 2nd quarter valued at approximately $577,000. Nykredit A S bought a new position in shares of Dropbox during the 2nd quarter valued at approximately $261,000. Finally, Corient Private Wealth LP increased its position in shares of Dropbox by 358.4% during the 2nd quarter. Corient Private Wealth LP now owns 244,482 shares of the company’s stock valued at $6,716,000 after purchasing an additional 191,147 shares during the last quarter. Institutional investors own 94.84% of the company’s stock.

About Dropbox

Dropbox, Inc (NASDAQ: DBX) is a technology company that provides cloud-based file storage, synchronization, sharing and collaboration services. Its platform enables individuals, businesses and organizations to store files online, access them across connected devices, and collaborate on documents and other digital content.

The company’s offerings include Dropbox for file management and collaboration, Dropbox Paper for shared document and project work, Dropbox Sign for electronic signatures, and DocSend for securely sharing and tracking business documents.