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

Dropbox, Inc. (NASDAQ:DBX) has been given a consensus rating of “Reduce” by the seven analysts that are covering the firm, MarketBeat reports. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating on the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $27.50.

Separately, Jefferies Financial Group lifted their price objective on Dropbox from $27.00 to $30.00 and gave the company a “hold” rating in a research report on Monday, January 6th.

Dropbox Trading Up 1.3 %

DBX opened at $32.38 on Friday. The firm’s 50 day simple moving average is $30.19 and its two-hundred day simple moving average is $26.83. The company has a market capitalization of $10.03 billion, a PE ratio of 18.72, a PEG ratio of 1.63 and a beta of 0.61. Dropbox has a 1-year low of $20.68 and a 1-year high of $33.43.

Dropbox (NASDAQ:DBX) last announced its earnings results on Thursday, November 7th. The company reported $0.36 EPS for the quarter, missing analysts’ consensus estimates of $0.52 by ($0.16). Dropbox had a negative return on equity of 135.85% and a net margin of 22.71%. The company had revenue of $638.80 million during the quarter, compared to the consensus estimate of $636.93 million. During the same period in the prior year, the business posted $0.35 earnings per share. Equities analysts forecast that Dropbox will post 1.49 earnings per share for the current fiscal year.

Insider Activity

In other Dropbox news, CEO Andrew Houston sold 132,000 shares of Dropbox stock in a transaction on Monday, December 2nd. The shares were sold at an average price of $28.12, for a total value of $3,711,840.00. Following the sale, the chief executive officer now directly owns 8,266,666 shares in the company, valued at approximately $232,458,647.92. The trade was a 1.57 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Timothy Regan sold 2,500 shares of the stock in a transaction dated Friday, November 15th. The shares were sold at an average price of $27.17, for a total transaction of $67,925.00. Following the transaction, the chief financial officer now directly owns 436,264 shares of the company’s stock, valued at $11,853,292.88. This trade represents a 0.57 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 902,568 shares of company stock worth $26,729,180 over the last ninety days. Corporate insiders own 26.40% of the company’s stock.

Hedge Funds Weigh In On Dropbox

Institutional investors have recently added to or reduced their stakes in the company. Capital Performance Advisors LLP purchased a new stake in shares of Dropbox during the 3rd quarter valued at about $28,000. Avion Wealth raised its position in Dropbox by 4,472.7% during the fourth quarter. Avion Wealth now owns 1,006 shares of the company’s stock valued at $30,000 after purchasing an additional 984 shares during the period. V Square Quantitative Management LLC bought a new stake in shares of Dropbox in the 3rd quarter valued at approximately $31,000. Quarry LP lifted its stake in shares of Dropbox by 81.1% in the 2nd quarter. Quarry LP now owns 1,965 shares of the company’s stock valued at $44,000 after purchasing an additional 880 shares during the last quarter. Finally, UMB Bank n.a. boosted its holdings in shares of Dropbox by 2,479.4% in the 3rd quarter. UMB Bank n.a. now owns 1,754 shares of the company’s stock worth $45,000 after purchasing an additional 1,686 shares during the period. Hedge funds and other institutional investors own 94.84% of the company’s stock.

About Dropbox

Dropbox, Inc provides a content collaboration platform worldwide. The company's platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. It serves customers in professional services, technology, media, education, industrial, consumer and retail, and financial services industries.