Dropbox, Inc. (NASDAQ:DBX) Receives Average Rating of “Hold” from Analysts

Dropbox, Inc. (NASDAQ:DBX) has earned a consensus recommendation of “Hold” from the five analysts that are presently covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, three have issued a hold recommendation and one has assigned a buy recommendation to the company. The average 1 year price target among brokers that have updated their coverage on the stock in the last year is $31.75.

DBX has been the subject of several research reports. Royal Bank Of Canada lifted their price objective on shares of Dropbox from $35.00 to $38.00 and gave the stock an “outperform” rating in a research note on Friday, November 7th. Weiss Ratings restated a “hold (c+)” rating on shares of Dropbox in a research note on Wednesday, October 8th. UBS Group downgraded shares of Dropbox from a “neutral” rating to a “sell” rating and dropped their price objective for the company from $29.00 to $27.00 in a report on Thursday, September 18th. Finally, Wall Street Zen raised shares of Dropbox from a “hold” rating to a “buy” rating in a report on Saturday, November 8th.

Dropbox Stock Performance

Dropbox stock opened at $29.30 on Tuesday. The stock has a market cap of $7.58 billion, a PE ratio of 16.55, a price-to-earnings-growth ratio of 2.56 and a beta of 0.63. The stock has a 50-day moving average of $29.61 and a two-hundred day moving average of $28.88. Dropbox has a one year low of $24.42 and a one year high of $33.33.

Dropbox (NASDAQ:DBX) last posted its quarterly earnings data on Thursday, November 6th. The company reported $0.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.64 by $0.10. The firm had revenue of $634.40 million for the quarter, compared to the consensus estimate of $623.59 million. Dropbox had a net margin of 19.87% and a negative return on equity of 49.51%. The company’s revenue for the quarter was down .7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.60 earnings per share. Dropbox has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS. As a group, sell-side analysts predict that Dropbox will post 1.64 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider William T. Yoon sold 11,430 shares of the company’s stock in a transaction dated 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 in the company, valued at $6,745,645.92. This represents a 4.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Andrew Houston sold 101,167 shares of the business’s stock in a transaction that occurred on Wednesday, October 1st. The shares were sold at an average price of $29.64, for a total value of $2,998,589.88. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 342,939 shares of company stock worth $10,241,445. Corporate insiders own 28.59% of the company’s stock.

Hedge Funds Weigh In On Dropbox

A number of large investors have recently added to or reduced their stakes in DBX. Strategic Advocates LLC raised its holdings in Dropbox by 1.5% in the 3rd quarter. Strategic Advocates LLC now owns 37,835 shares of the company’s stock valued at $1,143,000 after acquiring an additional 563 shares during the last quarter. CIBC Private Wealth Group LLC grew its position in shares of Dropbox by 15.4% in the third quarter. CIBC Private Wealth Group LLC now owns 13,166 shares of the company’s stock valued at $398,000 after purchasing an additional 1,758 shares in the last quarter. CIBC Bancorp USA Inc. acquired a new stake in shares of Dropbox in the third quarter valued at approximately $1,624,000. Captrust Financial Advisors lifted its position in Dropbox by 0.4% during the third quarter. Captrust Financial Advisors now owns 133,608 shares of the company’s stock worth $4,036,000 after buying an additional 563 shares in the last quarter. Finally, Livforsakringsbolaget Skandia Omsesidigt boosted its stake in Dropbox by 2.8% during the third quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 202,800 shares of the company’s stock worth $6,125,000 after buying an additional 5,600 shares during the last quarter. 94.84% of the stock is currently owned by institutional investors and hedge funds.

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.