Dropbox (NASDAQ:DBX) CEO Ashraf Alkarmi Sells 28,800 Shares

Dropbox, Inc. (NASDAQ:DBX) CEO Ashraf Alkarmi sold 28,800 shares of the firm’s stock in a transaction on Friday, September 11th. The shares were sold at an average price of $35.54, for a total value 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. The trade was a 2.79% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Dropbox Stock Up 0.9%

Dropbox stock opened at $37.63 on Wednesday. Dropbox, Inc. has a 52-week low of $21.69 and a 52-week high of $38.17. The firm has a market capitalization of $8.49 billion, a price-to-earnings ratio of 20.91, a PEG ratio of 5.49 and a beta of 0.65. The company has a fifty day simple moving average of $33.18 and a 200-day simple moving average of $28.31.

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

Dropbox News Summary

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Dropbox’s latest quarterly results modestly exceeded expectations, with earnings per share of $0.75 versus the $0.74 consensus estimate and revenue of $631.5 million versus the $626.7 million forecast. Revenue also increased year over year, offering evidence of continued profitability and operating stability.
• Positive Sentiment: Institutional investors own approximately 94.84% of Dropbox’s shares, while several smaller investment firms recently increased their positions. Broader institutional support can help underpin the stock’s valuation.
• Neutral Sentiment: A recent analysis said a rebound in Dropbox users is encouraging, although it questioned the product’s long-term growth prospects and downgraded the shares. The mixed assessment reflects improving engagement but continued concerns about strategic momentum.
• Negative Sentiment: Dropbox’s executives reported significant stock sales under pre-arranged Rule 10b5-1 trading plans. CEO Andrew Houston sold 383,800 shares for about $13.4 million, CFO Ross Tennenbaum sold 97,558 shares for about $3.4 million, and CEO Ashraf Alkarmi sold 28,800 shares for roughly $1.0 million. Although scheduled plans reduce the likelihood that the transactions reflect new insider concerns, the combined selling may weigh on investor sentiment.
• Negative Sentiment: Analyst sentiment remains cautious: the consensus rating is “Reduce,” with one Buy, four Hold and three Sell ratings and an average price target of $30.75. Zacks Research recently issued a “strong sell” view, while Citigroup maintained a neutral rating; these targets sit below the stock’s recent trading level and imply valuation risk.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in DBX. Pacer Advisors Inc. grew its stake in shares of Dropbox by 2.8% in the first quarter. Pacer Advisors Inc. now owns 2,047,966 shares of the company’s stock valued at $46,530,000 after buying an additional 55,921 shares in the last quarter. ING Groep NV purchased a new position in shares of Dropbox in the 4th quarter valued at about $1,223,000. Jupiter Asset Management Ltd. purchased a new position in Dropbox in the fourth quarter valued at approximately $1,591,000. OP Asset Management Ltd acquired a new stake in Dropbox during the 1st quarter worth $3,196,000. Finally, Wedge Capital Management L L P NC lifted its holdings in shares of Dropbox by 26.4% in the 2nd quarter. Wedge Capital Management L L P NC now owns 3,005,173 shares of the company’s stock valued at $82,552,000 after purchasing an additional 627,111 shares during the last quarter. 94.84% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

DBX has been the subject of several recent research reports. William Blair raised Dropbox from an “underperform” rating to a “market perform” rating in a report on Friday, August 7th. Bank of America reissued an “underperform” rating on shares of Dropbox in a research note on Friday, August 7th. Royal Bank Of Canada restated an “outperform” rating and issued a $42.00 target price on shares of Dropbox in a report on Thursday, September 3rd. Citigroup raised their target price on Dropbox from $28.00 to $33.00 and gave the stock a “neutral” rating in a research note on Friday, August 7th. Finally, Wall Street Zen lowered Dropbox from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. One analyst has rated the stock with a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, Dropbox presently has a consensus rating of “Reduce” and a consensus price target of $30.75.

Dropbox Company Profile

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.