Zacks Research Downgrades Dropbox (NASDAQ:DBX) to Strong Sell

Dropbox (NASDAQ:DBX) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

Several other research firms have also recently weighed in on DBX. William Blair upgraded shares of Dropbox from an “underperform” rating to a “market perform” rating in a report on Friday, August 7th. Citigroup raised their price objective on shares of Dropbox from $28.00 to $33.00 and gave the stock a “neutral” rating in a report on Friday, August 7th. Weiss Ratings raised shares of Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, August 13th. Bank of America reaffirmed an “underperform” rating on shares of Dropbox in a research note on Friday, August 7th. Finally, Royal Bank Of Canada reiterated an “outperform” rating on shares of Dropbox in a report on Monday, June 1st. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and an average target price of $28.25.

Dropbox Price Performance

NASDAQ:DBX opened at $34.00 on Wednesday. The business’s 50-day simple moving average is $30.26 and its 200-day simple moving average is $26.98. Dropbox has a fifty-two week low of $21.69 and a fifty-two week high of $36.30. The stock has a market capitalization of $7.67 billion, a PE ratio of 18.89, a price-to-earnings-growth ratio of 5.00 and a beta of 0.64.

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

Insider Activity

In other Dropbox news, CEO Ashraf Alkarmi sold 22,700 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $27.86, for a total transaction of $632,422.00. Following the completion of the transaction, the chief executive officer owned 1,080,746 shares of the company’s stock, valued at $30,109,583.56. This represents a 2.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Sarah Elizabeth Schubach sold 1,632 shares of the firm’s stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $31.61, for a total transaction of $51,587.52. Following the transaction, the chief accounting officer directly owned 124,266 shares of the company’s stock, valued at $3,928,048.26. This represents a 1.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 59,410 shares of company stock worth $1,841,022. 35.48% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in DBX. Palisade Asset Management LLC acquired a new stake in Dropbox in the 3rd quarter valued at $30,000. Kestra Advisory Services LLC acquired a new position in shares of Dropbox during the 4th quarter worth about $31,000. Larson Financial Group LLC boosted its stake in shares of Dropbox by 228.0% during the 4th quarter. Larson Financial Group LLC now owns 1,138 shares of the company’s stock worth $32,000 after buying an additional 791 shares during the last quarter. Geneos Wealth Management Inc. grew its holdings in shares of Dropbox by 78.0% in the 2nd quarter. Geneos Wealth Management Inc. now owns 1,273 shares of the company’s stock valued at $36,000 after acquiring an additional 558 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd bought a new position in shares of Dropbox in the 4th quarter valued at about $38,000. Institutional investors 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.