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

Dropbox, Inc. (NASDAQ:DBX) has been given an average rating of “Reduce” by the seven research firms that are presently covering the firm, Marketbeat reports. Two analysts have rated the stock with a sell rating, four have issued a hold rating and one has issued a buy rating on the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $27.50.

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

Dropbox Trading Down 1.3 %

Shares of NASDAQ:DBX opened at $32.20 on Friday. The company has a market capitalization of $9.97 billion, a price-to-earnings ratio of 18.61, a PEG ratio of 1.63 and a beta of 0.61. Dropbox has a 12-month low of $20.68 and a 12-month high of $33.43. The business has a 50-day moving average price of $30.28 and a 200 day moving average price of $26.87.

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

Insider Activity

In related news, insider Eric Cox sold 2,330 shares of Dropbox stock in a transaction on Monday, November 18th. The stock was sold at an average price of $26.41, for a total value of $61,535.30. Following the completion of the transaction, the insider now directly owns 321,871 shares in the company, valued at approximately $8,500,613.11. This trade represents a 0.72 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Timothy Regan sold 2,500 shares of the business’s stock in a transaction on Friday, November 15th. The stock was sold at an average price of $27.17, for a total value 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. The trade was a 0.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 902,568 shares of company stock valued at $26,729,180. 26.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. QRG Capital Management Inc. raised its holdings in shares of Dropbox by 10.6% in the 3rd quarter. QRG Capital Management Inc. now owns 221,716 shares of the company’s stock valued at $5,638,000 after purchasing an additional 21,190 shares in the last quarter. Aigen Investment Management LP purchased a new position in Dropbox in the third quarter valued at $482,000. Retirement Systems of Alabama raised its stake in Dropbox by 15.2% in the third quarter. Retirement Systems of Alabama now owns 944,033 shares of the company’s stock valued at $24,007,000 after buying an additional 124,528 shares in the last quarter. Charles Schwab Investment Management Inc. raised its stake in Dropbox by 8.9% in the third quarter. Charles Schwab Investment Management Inc. now owns 2,796,238 shares of the company’s stock valued at $71,108,000 after buying an additional 228,685 shares in the last quarter. Finally, Robeco Institutional Asset Management B.V. lifted its holdings in Dropbox by 6.1% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 2,355,762 shares of the company’s stock worth $59,907,000 after buying an additional 134,503 shares during the last quarter. 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.