Dropbox (NASDAQ:DBX) Stock Rating Lowered by Wall Street Zen

Dropbox (NASDAQ:DBX) was downgraded by investment analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued on Friday.

Several other analysts have also issued reports on the company. UBS Group lowered their target price on Dropbox from $31.00 to $29.00 and set a “neutral” rating on the stock in a research note on Friday, August 8th. Citigroup boosted their target price on Dropbox from $30.00 to $32.00 and gave the company a “neutral” rating in a research note on Friday, May 9th. Three analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $30.33.

Dropbox Price Performance

Shares of DBX opened at $29.87 on Friday. The firm has a market cap of $8.06 billion, a PE ratio of 18.21, a PEG ratio of 3.95 and a beta of 0.70. The stock’s fifty day moving average price is $27.76 and its two-hundred day moving average price is $27.72. Dropbox has a 1 year low of $22.72 and a 1 year high of $33.33.

Dropbox (NASDAQ:DBX) last issued its earnings results on Thursday, August 7th. The company reported $0.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.08. The firm had revenue of $625.70 million for the quarter, compared to analyst estimates of $618.60 million. Dropbox had a negative return on equity of 61.31% and a net margin of 19.17%.The business’s revenue was down 1.4% on a year-over-year basis. During the same period in the previous year, the company posted $0.60 earnings per share. Sell-side analysts anticipate that Dropbox will post 1.64 earnings per share for the current fiscal year.

Insider Buying and Selling at Dropbox

In related news, CFO Timothy Regan sold 10,000 shares of the business’s stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $27.94, for a total transaction of $279,400.00. Following the completion of the transaction, the chief financial officer directly owned 516,094 shares in the company, valued at $14,419,666.36. The trade was a 1.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Andrew Houston sold 319,000 shares of the business’s stock in a transaction dated Wednesday, June 11th. The stock was sold at an average price of $28.48, for a total value of $9,085,120.00. Following the transaction, the chief executive officer owned 8,266,666 shares of the company’s stock, valued at approximately $235,434,647.68. The trade was a 3.72% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 562,072 shares of company stock valued at $15,858,981 over the last 90 days. Insiders own 29.95% of the company’s stock.

Hedge Funds Weigh In On Dropbox

Hedge funds and other institutional investors have recently modified their holdings of the company. Neo Ivy Capital Management purchased a new position in shares of Dropbox in the 2nd quarter worth about $30,000. Elequin Capital LP boosted its holdings in shares of Dropbox by 71.0% in the 1st quarter. Elequin Capital LP now owns 1,130 shares of the company’s stock worth $30,000 after purchasing an additional 469 shares in the last quarter. Geneos Wealth Management Inc. boosted 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 worth $36,000 after purchasing an additional 558 shares in the last quarter. Brooklyn Investment Group boosted its holdings in shares of Dropbox by 250.3% in the 1st quarter. Brooklyn Investment Group now owns 1,387 shares of the company’s stock worth $37,000 after purchasing an additional 991 shares in the last quarter. Finally, Cullen Frost Bankers Inc. purchased a new position in shares of Dropbox in the 2nd quarter worth about $41,000. 94.84% of the stock is currently owned by hedge funds and other institutional investors.

Dropbox Company Profile

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.