JPMorgan Chase & Co. Lowers Dropbox (NASDAQ:DBX) Price Target to $25.00

Dropbox (NASDAQ:DBX) had its price target decreased by JPMorgan Chase & Co. from $29.00 to $25.00 in a report released on Friday,Benzinga reports. The brokerage presently has a “neutral” rating on the stock. JPMorgan Chase & Co.‘s price objective suggests a potential downside of 1.79% from the company’s previous close.

A number of other brokerages have also recently issued reports on DBX. Royal Bank Of Canada decreased their target price on Dropbox from $35.00 to $30.00 and set an “outperform” rating for the company in a research report on Friday. Weiss Ratings reiterated a “hold (c+)” rating on shares of Dropbox in a research report on Wednesday, January 21st. UBS Group lowered their price objective on shares of Dropbox from $27.00 to $23.00 and set a “sell” rating on the stock in a research report on Friday. Finally, Wall Street Zen lowered shares of Dropbox from a “buy” rating to a “hold” rating in a research note on Friday, January 23rd. One equities research analyst has rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $27.50.

Dropbox Stock Performance

Shares of NASDAQ:DBX traded up $0.73 during trading hours on Friday, reaching $25.46. The stock had a trading volume of 3,778,888 shares, compared to its average volume of 4,043,222. Dropbox has a 1 year low of $23.63 and a 1 year high of $32.40. The firm’s 50 day moving average is $26.53 and its 200-day moving average is $28.35. The stock has a market capitalization of $6.59 billion, a price-to-earnings ratio of 14.40, a P/E/G ratio of 2.02 and a beta of 0.63.

Dropbox (NASDAQ:DBX) last issued its earnings results on Thursday, February 19th. The company reported $0.68 EPS for the quarter, topping analysts’ consensus estimates of $0.66 by $0.02. The firm had revenue of $636.20 million during the quarter, compared to the consensus estimate of $627.83 million. Dropbox had a net margin of 19.87% and a negative return on equity of 49.51%. The company’s revenue was down 1.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.73 earnings per share. Analysts forecast that Dropbox will post 1.64 EPS for the current year.

Insider Activity

In related news, CEO Andrew Houston sold 164,502 shares of Dropbox stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $25.66, for a total value of $4,221,121.32. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Sarah Elizabeth Schubach sold 1,416 shares of the 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 owned 86,319 shares of the company’s stock, valued at $2,113,952.31. This represents a 1.61% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 430,423 shares of company stock worth $11,705,876. Insiders own 29.95% of the company’s stock.

Hedge Funds Weigh In On Dropbox

Several hedge funds have recently bought and sold shares of DBX. LSV Asset Management grew its holdings in Dropbox by 38.1% in the third quarter. LSV Asset Management now owns 11,613,642 shares of the company’s stock worth $350,848,000 after purchasing an additional 3,205,140 shares during the period. Y Intercept Hong Kong Ltd bought a new stake in Dropbox in the second quarter worth $1,404,000. Kestra Investment Management LLC purchased a new stake in shares of Dropbox in the second quarter worth $682,000. CenterBook Partners LP bought a new position in shares of Dropbox during the second quarter valued at $2,368,000. Finally, Norges Bank purchased a new position in shares of Dropbox in the 2nd quarter worth about $51,307,000. Hedge funds and other institutional investors own 94.84% of the company’s stock.

Key Dropbox News

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Q4 beat — Dropbox reported $0.68 EPS (vs. $0.66 est.) and $636.2M revenue (vs. $627.8M est.), with management citing accelerating customer growth and cost cuts that lifted margins. Dropbox’s Q4 CY2025: Beats On Revenue, Customer Growth Accelerates
• Positive Sentiment: Guidance nudges above consensus — Q1 revenue guidance of $618.0M–$621.0M vs. ~ $615.5M consensus and FY‑26 revenue reiterated around $2.5B, implying modest upside to Street revenue assumptions. Dropbox Announces Fourth Quarter and Fiscal 2025 Results
• Neutral Sentiment: Earnings call details — Management emphasized operating discipline and reshaping investments; useful for assessing how sustainable margin gains and customer acceleration are over 2026. Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Insider sale — CAO Sarah Schubach sold 1,416 shares (~$34.7K); a small trim versus her >86K share holding and not a material signal of mass insider de‑risking. SEC Filing
• Negative Sentiment: Analyst target cut — RBC trimmed its price target from $35 to $30 (still “Outperform”), reducing near‑term upside expectations and potentially capping buying momentum. RBC price target cut coverage
• Negative Sentiment: Critical analysis on sustainability — Recent commentary argues free cash flow strength may not be sustainable amid user attrition and flat y/y revenue, a risk for valuation if growth doesn’t reaccelerate. Seeking Alpha: Rich FCF That Can’t Be Sustained

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.