Dropbox (NASDAQ:DBX) Receives “Underperform” Rating from William Blair

William Blair reiterated their underperform rating on shares of Dropbox (NASDAQ:DBX) in a research report report published on Monday, Marketbeat reports.

A number of other equities analysts have also recently weighed in on the company. UBS Group lowered their price target on Dropbox from $27.00 to $23.00 and set a “sell” rating for the company in a report on Friday, February 20th. Wall Street Zen lowered shares of Dropbox from a “buy” rating to a “hold” rating in a report on Friday, January 23rd. Royal Bank Of Canada decreased their target price on shares of Dropbox from $35.00 to $30.00 and set an “outperform” rating on the stock in a research report on Friday, February 20th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Dropbox in a research note on Wednesday, January 21st. Finally, JPMorgan Chase & Co. reduced their price target on shares of Dropbox from $29.00 to $25.00 and set a “neutral” rating on the stock in a research note on Friday, February 20th. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus target price of $27.50.

Dropbox Price Performance

Dropbox stock opened at $24.42 on Monday. The firm has a 50 day simple moving average of $25.49 and a 200-day simple moving average of $27.97. The stock has a market cap of $5.89 billion, a price-to-earnings ratio of 13.13, a price-to-earnings-growth ratio of 1.77 and a beta of 0.63. Dropbox has a 1-year low of $23.63 and a 1-year high of $32.40.

Dropbox (NASDAQ:DBX) last released its quarterly 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 firm had revenue of $636.20 million for the quarter, compared to analyst estimates of $627.83 million. Dropbox had a net margin of 20.17% and a negative return on equity of 37.47%. The business’s revenue for the quarter was down 1.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.73 EPS. Equities analysts expect that Dropbox will post 1.64 earnings per share for the current fiscal year.

Insider Transactions at Dropbox

In related news, CTO Ali Dasdan sold 7,306 shares of the firm’s stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $24.89, for a total transaction of $181,846.34. Following the completion of the transaction, the chief technology officer directly owned 499,379 shares in the company, valued at $12,429,543.31. This trade represents a 1.44% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Andrew Houston sold 164,502 shares of the business’s stock in a transaction dated 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 quarter, insiders have sold 453,028 shares of company stock valued at $11,773,578. Insiders own 28.59% of the company’s stock.

Institutional Investors Weigh In On Dropbox

Several large investors have recently added to or reduced their stakes in the business. LSV Asset Management grew its holdings in Dropbox by 38.1% during the 3rd quarter. LSV Asset Management now owns 11,613,642 shares of the company’s stock worth $350,848,000 after acquiring an additional 3,205,140 shares in the last quarter. Intech Investment Management LLC raised its holdings in shares of Dropbox by 117.3% in the 3rd quarter. Intech Investment Management LLC now owns 407,958 shares of the company’s stock valued at $12,324,000 after purchasing an additional 220,176 shares in the last quarter. Kestra Investment Management LLC purchased a new stake in shares of Dropbox during the 2nd quarter worth $682,000. BOKF NA lifted its position in shares of Dropbox by 48.8% during the 3rd quarter. BOKF NA now owns 163,896 shares of the company’s stock worth $4,951,000 after purchasing an additional 53,741 shares during the last quarter. Finally, WINTON GROUP Ltd acquired a new position in shares of Dropbox during the third quarter worth $4,497,000. 94.84% of the stock is owned by hedge funds and other institutional investors.

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.