Dropbox (NASDAQ:DBX) Downgraded to “Sell” Rating by UBS Group

UBS Group downgraded shares of Dropbox (NASDAQ:DBX) from a neutral rating to a sell rating in a report released on Thursday, Marketbeat reports. UBS Group currently has $27.00 price target on the stock, down from their prior price target of $29.00.

Separately, Wall Street Zen downgraded shares of Dropbox from a “buy” rating to a “hold” rating in a report on Friday, September 5th. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Dropbox currently has an average rating of “Reduce” and an average target price of $29.67.

Dropbox Price Performance

Dropbox stock opened at $30.79 on Thursday. Dropbox has a one year low of $24.25 and a one year high of $33.33. The stock has a market capitalization of $8.31 billion, a PE ratio of 18.77, a price-to-earnings-growth ratio of 4.19 and a beta of 0.70. The business’s fifty day moving average is $28.38 and its 200 day moving average is $27.98.

Dropbox (NASDAQ:DBX) last announced its earnings results on Thursday, August 7th. The company reported $0.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.63 by $0.08. The business had revenue of $625.70 million for the quarter, compared to analysts’ expectations 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 for the quarter was down 1.4% on a year-over-year basis. During the same period last year, the firm posted $0.60 earnings per share. As a group, sell-side analysts expect that Dropbox will post 1.64 EPS for the current fiscal year.

Insiders Place Their Bets

In other Dropbox news, insider William T. Yoon sold 11,430 shares of Dropbox stock in a transaction that occurred on Monday, September 8th. The stock was sold at an average price of $30.16, for a total value of $344,728.80. Following the sale, the insider owned 223,662 shares of the company’s stock, valued at $6,745,645.92. The trade was a 4.86% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Karen Peacock sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, September 8th. The shares were sold at an average price of $30.00, for a total value of $60,000.00. Following the transaction, the director directly owned 23,295 shares in the company, valued at approximately $698,850. This represents a 7.91% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 314,333 shares of company stock worth $8,938,399. Insiders own 29.95% of the company’s stock.

Hedge Funds Weigh In On Dropbox

A number of large investors have recently bought and sold shares of the business. Acadian Asset Management LLC boosted its holdings in Dropbox by 1.9% during the 1st quarter. Acadian Asset Management LLC now owns 8,544,978 shares of the company’s stock valued at $228,202,000 after acquiring an additional 157,148 shares during the period. LSV Asset Management boosted its holdings in Dropbox by 10.2% during the 2nd quarter. LSV Asset Management now owns 8,408,502 shares of the company’s stock valued at $240,483,000 after acquiring an additional 774,986 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in Dropbox by 10.0% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 6,662,161 shares of the company’s stock valued at $190,538,000 after acquiring an additional 605,258 shares during the period. Charles Schwab Investment Management Inc. boosted its holdings in Dropbox by 1.2% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 2,950,273 shares of the company’s stock valued at $78,802,000 after acquiring an additional 36,268 shares during the period. Finally, Caisse DE Depot ET Placement DU Quebec boosted its holdings in Dropbox by 38.1% during the 1st quarter. Caisse DE Depot ET Placement DU Quebec now owns 2,482,705 shares of the company’s stock valued at $66,313,000 after acquiring an additional 684,882 shares during the period. Hedge funds and other institutional investors own 94.84% of the company’s stock.

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.