Brokerages Set Dropbox, Inc. (NASDAQ:DBX) Price Target at $27.50

Shares of Dropbox, Inc. (NASDAQ:DBX) have earned an average recommendation of “Hold” from the five brokerages that are currently covering the company, Marketbeat.com reports. One investment 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 twelve-month price target among brokerages that have issued ratings on the stock in the last year is $27.50.

Several research analysts have commented on DBX shares. Royal Bank Of Canada decreased their target price on shares of Dropbox from $35.00 to $30.00 and set an “outperform” rating for the company in a report on Friday. UBS Group reduced their price target on shares of Dropbox from $27.00 to $23.00 and set a “sell” rating for the company in a research report on Friday. Wall Street Zen lowered shares of Dropbox from a “buy” rating to a “hold” rating in a research note on Friday, January 23rd. JPMorgan Chase & Co. lowered their price objective on shares of Dropbox from $29.00 to $25.00 and set a “neutral” rating on the stock in a research report on Friday. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Dropbox in a report on Wednesday, January 21st.

More Dropbox News

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Q4 beat: Dropbox reported $0.68 EPS vs. $0.66 expected and revenue of $636.2M vs. $627.8M expected; management flagged accelerating customer growth and margin improvement tied to cost discipline. Dropbox Announces Fourth Quarter and Fiscal 2025 Results
• Positive Sentiment: Guidance: DBX gave Q1 revenue guidance of $618M–$621M (slightly above Street) and kept FY‑26 revenue around ~$2.5B, signaling modest upside to revenue expectations. Guidance in press release
• Neutral Sentiment: Insider sale: CAO Sarah Schubach sold 1,416 shares (~$34.7K) — a small trim relative to her remaining holdings and not an obvious signal of material insider de‑risking. SEC Filing
• Neutral Sentiment: Institutional flows: Several smaller funds modestly increased positions in Q4; overall institutional ownership remains high, limiting volatility from a single holder’s activity.
• Neutral Sentiment: Short‑interest data appears inconsistent in recent reports (reported as zero/NaN), so current positioning signals are unclear and likely unreliable in the short term.
• Negative Sentiment: Analyst pressure — JPMorgan cut its price target to $25 and set a “neutral” rating, which reduces upside expectations and may weigh on buying momentum. JPMorgan PT cut coverage
• Negative Sentiment: Analyst pressure — RBC trimmed its target from $35 to $30 (still “Outperform”), narrowing prior upside and tempering some bullish views. RBC price target cut coverage
• Negative Sentiment: Bearish commentary and premarket weakness: A Seeking Alpha piece cautioned that strong free cash flow may not be sustainable as users leave, and DBX was flagged among premarket decliners earlier, creating near‑term selling pressure. Seeking Alpha analysis Premarket movers

Insider Activity at Dropbox

In other news, CFO Timothy Regan sold 1,500 shares of the stock in a transaction that occurred on Friday, November 28th. The shares were sold at an average price of $29.64, for a total value of $44,460.00. Following the completion of the sale, the chief financial officer directly owned 439,147 shares of the company’s stock, valued at $13,016,317.08. This represents a 0.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Andrew Houston sold 164,502 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $25.66, for a total transaction of $4,221,121.32. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 424,757 shares of company stock valued at $11,535,896. Company insiders own 28.59% of the company’s stock.

Institutional Investors Weigh In On Dropbox

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Rossby Financial LCC boosted its holdings in Dropbox by 128.5% in the third quarter. Rossby Financial LCC now owns 937 shares of the company’s stock worth $28,000 after purchasing an additional 527 shares in the last quarter. Neo Ivy Capital Management acquired a new stake in shares of Dropbox in the second quarter worth about $30,000. Palisade Asset Management LLC acquired a new stake in shares of Dropbox in the third quarter worth about $30,000. First Horizon Corp bought a new stake in shares of Dropbox during the 3rd quarter worth about $31,000. Finally, Kestra Advisory Services LLC bought a new stake in shares of Dropbox during the 4th quarter worth about $31,000. Hedge funds and other institutional investors own 94.84% of the company’s stock.

Dropbox Stock Up 3.0%

Shares of NASDAQ DBX opened at $25.48 on Friday. The stock’s fifty day simple moving average is $26.48 and its 200 day simple moving average is $28.37. The stock has a market capitalization of $6.59 billion, a price-to-earnings ratio of 13.70, a PEG ratio of 2.08 and a beta of 0.63. Dropbox has a 52-week low of $23.63 and a 52-week high of $32.40.

Dropbox (NASDAQ:DBX) last announced its earnings results on Thursday, February 19th. The company reported $0.68 EPS for the quarter, beating the consensus estimate of $0.66 by $0.02. The business had revenue of $636.20 million during the quarter, compared to the consensus estimate of $627.83 million. Dropbox had a negative return on equity of 37.47% and a net margin of 20.17%.Dropbox’s revenue was down 1.1% compared to the same quarter last year. During the same period in the prior year, the business posted $0.73 earnings per share. As a group, analysts anticipate that Dropbox will post 1.64 earnings per share for the current year.

Dropbox Company Profile

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.