Dropbox, Inc. (NASDAQ:DBX) Given Consensus Recommendation of “Reduce” by Brokerages

Dropbox, Inc. (NASDAQ:DBX) has been assigned an average recommendation of “Reduce” from the six brokerages that are presently covering the company, Marketbeat Ratings reports. Two analysts have rated the stock with a sell recommendation, three have issued a hold recommendation and one has given a buy recommendation to the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $27.00.

Several research firms have weighed in on DBX. UBS Group cut their target price on Dropbox from $27.00 to $23.00 and set a “sell” rating on the stock in a report on Friday, February 20th. JPMorgan Chase & Co. reduced their price target on Dropbox from $29.00 to $25.00 and set a “neutral” rating for the company in a research report on Friday, February 20th. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of Dropbox in a research report on Monday. Wall Street Zen raised Dropbox from a “hold” rating to a “buy” rating in a research report on Saturday, May 16th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Dropbox in a research report on Monday, May 4th.

Dropbox Price Performance

DBX opened at $27.20 on Friday. Dropbox has a fifty-two week low of $21.69 and a fifty-two week high of $32.40. The business has a 50-day moving average of $25.02 and a 200-day moving average of $26.18. The company has a market capitalization of $6.35 billion, a PE ratio of 14.86, a price-to-earnings-growth ratio of 3.02 and a beta of 0.67.

Dropbox (NASDAQ:DBX) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.76 earnings per share for the quarter, topping analysts’ consensus estimates of $0.71 by $0.05. The company had revenue of $629.50 million during the quarter, compared to the consensus estimate of $620.56 million. Dropbox had a negative return on equity of 30.01% and a net margin of 18.71%.The business’s quarterly revenue was up .8% on a year-over-year basis. During the same period last year, the business earned $0.70 EPS. On average, equities research analysts expect that Dropbox will post 2.09 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Dropbox news, CEO Ashraf Alkarmi sold 22,700 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $27.86, for a total value of $632,422.00. Following the completion of the sale, the chief executive officer owned 1,080,746 shares of the company’s stock, valued at $30,109,583.56. The trade was a 2.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CTO Ali Dasdan sold 5,666 shares of the business’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $27.56, for a total value of $156,154.96. Following the completion of the sale, the chief technology officer directly owned 514,611 shares of the company’s stock, valued at $14,182,679.16. This represents a 1.09% 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. Over the last ninety days, insiders have sold 239,883 shares of company stock valued at $6,006,972. 35.48% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of DBX. Empowered Funds LLC lifted its position in Dropbox by 7.3% during the 1st quarter. Empowered Funds LLC now owns 38,795 shares of the company’s stock worth $1,036,000 after acquiring an additional 2,655 shares during the last quarter. Cetera Investment Advisers lifted its position in Dropbox by 10.8% during the 2nd quarter. Cetera Investment Advisers now owns 24,623 shares of the company’s stock worth $704,000 after acquiring an additional 2,405 shares during the last quarter. EverSource Wealth Advisors LLC lifted its position in Dropbox by 88.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,681 shares of the company’s stock worth $48,000 after acquiring an additional 787 shares during the last quarter. Cresset Asset Management LLC lifted its position in Dropbox by 75.8% during the 2nd quarter. Cresset Asset Management LLC now owns 15,230 shares of the company’s stock worth $436,000 after acquiring an additional 6,569 shares during the last quarter. Finally, Federated Hermes Inc. lifted its position in Dropbox by 360.9% during the 2nd quarter. Federated Hermes Inc. now owns 117,852 shares of the company’s stock worth $3,371,000 after acquiring an additional 92,280 shares during the last quarter. 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.