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

Wall Street Zen downgraded shares of Dropbox (NASDAQ:DBX) from a buy rating to a hold rating in a report released on Friday.

Several other analysts have also commented on the stock. Royal Bank Of Canada lowered their price target on shares of Dropbox from $38.00 to $35.00 and set an “outperform” rating on the stock in a research report on Monday, January 5th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Dropbox in a report on Wednesday. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Dropbox has a consensus rating of “Hold” and a consensus target price of $31.33.

Dropbox Stock Up 0.2%

Shares of DBX stock opened at $26.30 on Friday. Dropbox has a fifty-two week low of $24.42 and a fifty-two week high of $33.33. The stock has a market cap of $6.80 billion, a P/E ratio of 14.86, a P/E/G ratio of 2.14 and a beta of 0.62. The business has a fifty day simple moving average of $28.13 and a 200-day simple moving average of $28.64.

Dropbox (NASDAQ:DBX) last released its quarterly earnings data on Thursday, November 6th. The company reported $0.74 EPS for the quarter, topping the consensus estimate of $0.64 by $0.10. The business had revenue of $634.40 million for the quarter, compared to analyst estimates of $623.59 million. Dropbox had a net margin of 19.87% and a negative return on equity of 49.51%. The business’s revenue for the quarter was down .7% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.60 EPS. On average, sell-side analysts anticipate that Dropbox will post 1.64 earnings per share for the current year.

Insider Activity

In related news, insider Ashraf Alkarmi sold 10,098 shares of the firm’s stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $29.18, for a total transaction of $294,659.64. Following the sale, the insider owned 435,810 shares in the company, valued at approximately $12,716,935.80. This trade represents a 2.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CTO Ali Dasdan sold 5,666 shares of Dropbox stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $29.19, for a total transaction of $165,390.54. Following the completion of the sale, the chief technology officer directly owned 526,140 shares of the company’s stock, valued at $15,358,026.60. The trade was a 1.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 406,620 shares of company stock worth $11,703,370. 29.95% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Dropbox

Several institutional investors have recently added to or reduced their stakes in DBX. LSV Asset Management boosted its stake in Dropbox by 38.1% in the 3rd quarter. LSV Asset Management now owns 11,613,642 shares of the company’s stock worth $350,848,000 after buying an additional 3,205,140 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Dropbox during the 2nd quarter worth about $56,911,000. Norges Bank acquired a new stake in shares of Dropbox in the second quarter worth approximately $51,307,000. Allianz Asset Management GmbH grew its holdings in Dropbox by 47.8% in the third quarter. Allianz Asset Management GmbH now owns 2,123,932 shares of the company’s stock valued at $64,164,000 after purchasing an additional 686,577 shares during the period. Finally, Arrowstreet Capital Limited Partnership increased its position in Dropbox by 10.0% during the second quarter. Arrowstreet Capital Limited Partnership now owns 6,662,161 shares of the company’s stock worth $190,538,000 after purchasing an additional 605,258 shares during the last quarter. 94.84% of the stock is currently owned by institutional investors and hedge funds.

About Dropbox

Dropbox, Inc (NASDAQ: DBX) is a leading provider of cloud-based file storage, collaboration, and productivity tools. Founded in 2007 and headquartered in San Francisco, California, the company offers a suite of services designed to help individuals and organizations securely store, share, and manage digital content. Dropbox has grown from a simple file-syncing application into an integrated collaboration platform used by millions of customers around the globe.

At its core, Dropbox provides cloud storage plans tailored for consumers and businesses.